The Australian sharemarket has finished the day 1 per cent stronger, ending a three day losing streak.
The S&P/ASX 200 Index gained 42 points to finish at 4,268. On the futures market, the SPI is 45 points higher.
Economic news
Building approvals fell one per cent in December taking the annual rate to minus 24.5 per cent, seasonally adjusted.
And Australia's trade surplus for December was $1.709 billion, seasonally adjusted, an increase of $366 million on the month before. Total exports rose 2 per cent and imports were also up 1 per cent.
Company news
Wesfarmers Limited (ASX:WES) owned Coles has outpaced Woolworths again in sales from existing stores, reporting food and liquor sales of $7.3 billion for the second quarter of the 2012 financial year. That’s up 4.3 per cent. Total sales in the first half of the financial year increased by 4.9 per cent to $13.6 billion. Coles recorded 17 million customer transactions in the week of Christmas, more than one million transactions greater than the year before. Wesfarmers shares closed 0.64 per cent higher at $29.90.
Lynas Corporation Limited (ASX:LYC) has received approval for a temporary operating licence for the its Advanced Materials Plant in Malaysia. The licence will be valid for two years. If Lynas complies with requirements, a permanent operating licence will be issued within two years, according to a statement released by the rare earths miner. Lynas has agreed to pay $US50 million to the Malaysian Government as a financial guarantee. Lynas shares closed 19.1 per cent higher to $1.59.
Westpac Banking Corporation (ASX:WBC) is in talks with the Finance Sector Union, reportedly the bank is preparing to cut 560 positions.
BHP Billiton Limited (ASX:BHP, LON:BLT, NYSE:BHP) approves $US917 million in pre-commitment funding for the construction of a 100 million tonne per year outer harbour facility in the Pilbara.
Clough Limited (ASX:CLO) wins a $350 million contract for the offshore hook-up and commissioning component of the Chevron operated Wheatstone Project.
PMP Limited (ASX:PMP) cuts its earning guidance by 20 per cent because of challenging trading conditions and volatile markets.
Best and worst performers
Materials was the best performer, up 231 points to 11,649. The worst performing sector was health care, it fell 35 points, closing at 7,878.
The best performing stock in the S&P/ASX200 was Lynas Corporation as mentioned earlier. Shares in Bathurst Resources and Virgin Australia Holdings also closed higher.
The worst performing stock was Billabong International; it dropped 3.92 per cent to $1.84, followed by Energy World Corporation and Fairfax Media.
Commodities
The price of gold is $US1,746 an ounce and Light crude is down 11 cents at $US97.50 a barrel.
