The Australian share market closed higher today, lead by gains in the finance and resource stocks. All the major banks closed stronger, with National Australia Bank recording the most gains. The major miners closed higher as well; Rio Tinto added $0.40 and BHP edged up by $0.13.
The S&P/ASX200 Index improved 22 points to close at 4,808. On the futures market, the SPI is 12 points higher.
Economic news: According to the latest figures from the Australian Bureau of Statistics, the Consumer Price Index, showed consumer inflation rose by 0.4 per cent in the December quarter, coming in below market expectations of a 0.7 per cent increase. The latest CPI figures take annual growth to 2.7 per cent, well within the Reserve Bank’s two to three per cent target band.
Company news: Sydney Morning Herald has reported that Downer Edi Ltd (ASX:DOW) shareholders can expect a provision of more than $150 million on Thursday. The paper also added that if ratings agency Fitch decides to downgrade its credit rating, the company will be forced to go to the market and raise capital. Yesterday, Downer went into a trading halt after the firm experienced technical issues relating to the testing of the trains in its $1.9 billion Waratah train building project with the NSW Government. Shares in Downer EDI are at a trading halt.
AWB Ltd (ASX:AWB) says it expects returns for most grades of wheat in the 2010-11 season to be higher. The company says stronger overseas markets for wheat coupled with a slightly weaker Australian dollar will boost financial returns for Australian farmers. AWB’s general manager of commodities, Mitch Morison, says although the market was subdued during the Christmas period, buying activity has picked up for the grain from the Europe and US markets.
Qantas Airways Ltd (ASX:QAN) continues to experience mechanical woes, when an aircraft flying from Adelaide to Melbourne was forced into rapid descent after its cabin depressurised.
The Australian Financial Review has reported that East Timor has once again moved to block Woodside Petroleum Ltd’s (ASX:WPL) work on its Sunrise LNG project, claiming the oil major has been forced to stop work at the site due to licensing issues.
Virgin Blue Holdings Ltd (ASX:VBA) says it expects net profit to fall by up to 63 per cent for the six months ended 31 December, after being affected by a slowdown in consumer spending and flooding in Australia’s eastern seaboard.
Newcrest Mining Ltd (ASX:NCM) has downgraded its full year production guidance for both gold and copper, following the recent flooding in Australia coupled with problems at its Ivory Coast operations.
Best and worst performers: The best performing sector at close was Consumer Discretionary, with the index adding 12 points to close at 1,550. The worst performing sector was Utilities, the index losing 4 points to close at 4,419.The best performing stock in the S&P/ASX200 was Sundance Resources shares rose 7.61 per cent to close at $0.495. Shares in St. Barbara and Spotless Group also gained today. The worst performing stock was Resolute Mining shares fell 3.44 per cent to close at $1.405. Shares in GrainCorp and Elders also closed weaker today.
In commodities, gold is trading at $US1,332 an ounce and Light crude is down by $0.40 to $US87.47 cents a barrel.
