The Australian share market firmed 0.6 per cent today, lifted by broad gains in financials and resources, while consumer stocks suffered with Woolworths profit downgrade.
The S&P/ASX200 Index improved 33 points to close at 4,789. On the futures market, the SPI is 34 points higher.
Economic news: The Australian Bureau of Statistics producer price index at the final stage of production lifted lower than economists had expected, rising 0.1 per cent in the December quarter, well behind a rise of 1.3 per cent in the previous quarter. The final producer price index increased 3.2 per cent in 2010, again coming in lower than had been expected.
Company news: PanAust Ltd (ASX:PNA) has achieved record copper production at its Phu Kham mine in Laos for second successive quarter and forecast a rise in 2011 earnings. PanAust says it produced a record 18,871 tonnes of copper at an average cach cost of $US0.76 per pound, after gold and silver credits on the back of above nameplate ore processing rates and high commodity prices for precious metal by-products. PanAust expects EBITDA for the 2011 year be between $339 million and $394 million. Shares in PanAust fell 1.2 per cent to close at $0.825.
Northern Iron Ltd (ASX:NFE) says it is on track to deliver full year production guidance of 2,300 kilotonnes in 2011 because of improved maintenance performance. The company reported a record level of tonnes milled for the start of the 2010 fourth quarter, and, based on this result is confident of achieving guidance. In the next quarter Northern Iron says it will also focus on finalising a modified supply agreement with TATA Steel Europe and negotiating trial cargoes to Eastern European and Middle Eastern customers. Shares in Northern Iron dipped 4.72 per cent today to close at $1.815.
Engineering firm Downer EDI Ltd (ASX:DOW) has today gone into a trading halt, it said pending an announcement regarding the changed circumstances on its Waratah Train contract.
The Australian has reported that Coalworks Ltd (ASX:CWK) shareholders have approved selling 19.9 per cent of the company’s issued capital for $19.28 million to Boardwalk Resources Pty Ltd, in addition to approving a $10.12 million capital raising.
Riversdale Mining Ltd’s (ASX:RIV) directors have unanimously backed Rio Tinto Ltd’s (ASX:RIO) $3.9 billion takeover offer, in the absence of a superior proposal.
Shares in Woolworths Ltd (ASX:WOW) dropped 2.5 per cent after the retailer downgraded earnings guidance for the 2011 financial year, despite posting a rise in sales growth for the first half of the year.
In the best and worst performers: The best performing sector at close was Financials Excluding Real Estate Investment Trusts, with the index adding 63 points to close at 5,177. The worst performing sector was Health Care, the index losing 7 points to close at 9,017. The best performing stock in the S&P/ASX200 was ING Office Fund shares rose 4.24% to close at $0. 615. Shares in Foster’s Group and Asciano Group also gained today. The worst performing stock was Karoon Gas shares fell 8.09% to close at $7.50. Shares in White Energy Company and Sundance Resources also closed weaker today.
In commodities, gold is trading at $US1,352 an ounce. Llight crude is up $0.38 to $US89.49 a barrel.
