Australian stocks rose 2.54 percent on Monday, as companies geared to global growth such as miners and building products makers gained on signs of improvement in the global economic outlook.
All Ordinaries is up 109 points at 4414.
Some analysts are saying "People are feeling a lot better and putting their money to work back in the market. The real question on everyone's lips is whether the global outlook and the European backdrop is strong enough to warrant the high level for the currency. Yes, the world looks better than it did last week, but is it strong enough to see currencies break into new ranges?"
The Australian dollar was higher at noon on Monday after pushing through $US0.8400 after a bright start in Asian equity markets.
At 1200 AEST, the local currency was trading at $US0.8403/05, up from Friday's close of $US0.8293/97.
Fairfax Media Ltd (FXJ) has reported a $380 million loss for the year, due to a slump in advertising revenues. The loss for the 12 months to June 30 includes $664.3 million in significant items, $513 million related to a reduction in the carrying value of its newspaper mastheads and goodwill.
Net profit excluding one-off impairments and significant items for fiscal 2009 came to $226.7 million.
Commercial radio broadcaster Austereo Group Ltd (AEO) has posted a 15.2 per cent fall in full year profit this morning and says it expects a tough year ahead.Net profit for the 12 months to June 30 came to $41.4 million, down from $48.8 million the year before.
Challenger Financial Services Group Ltd (CGF) has reported a loss of $91 million for the year worse than the $44.2 million loss recorded last year. The company says normalised net profit came to $219 million up slightly on last year.
The Australian Financial Review also reported Monday that Rio Tinto Chief Financial Officer Guy Elliott had reportedly said the miner was in the very early stages of talks with Aluminum Corp. Of China Ltd., or Chinalco, over a possible bauxite and alumina deal.
WorleyParsons Ltd WOR today announced a 13.6 per cent rise in net profit after tax for the year but says market uncertainty mean it probably won’t repeat the result this year. Net profit after tax for the 12 months to June 30 came to $390.5 million, up from $343.9 million last year. Earnings before, interest, tax, depreciation and amortisation climbed 18 per cent to $693.2 million with revenue up 27 per cent to $6.2 billion.
Australian new motor vehicle sales fell by 6.9 per cent, seasonally adjusted, to 75,006 units in July, from 80,559 units in June, the Australian Bureau of Statistics (ABS) said on Monday.
The best performing sector is the Consumer Discretionary index up 49 points to 1,459. Shares in Photon Group up 6.27 per cent at $1.78. Shares in Wotif.com Holdings and Fairfax Media are also stronger at noon.
The only sector in the red at midday is the Telco Services index, down 26 points at 1,167. Shares in Enerji down 4.76 per cent to $0.10. Shares in Telstra are lower while shares in Amcom Telecommunications are steady.
One of the Common Mistakes Made by Investors (Putting price limits on buy-and-sell orders. Novice investors rarely place orders to buy or sell a share at the market price. This procedure is poor because the investor is quibbling for eighths and quarters of a point rather than getting out of stocks that should be sold to avoid substantial losses or buying into popular stocks)
