Better-than-expected labour force data and firmer commodity prices pushed banks and resources stocks higher in morning trading, leaving the Australian share market up almost one per cent at noon.
All Ordinaries index had advanced 45.2 points, or 0.92 per cent, to 4,945.3 points.
Analyst said "The market is responding very, very well. That unemployment number was a positive tick for the Australian economy and a positive for the banks. That... bodes very well for their bad debt cycle. But obviously it is not great news for potential (interest) rate hikes down the road."
Gold miner St Barbara Ltd (SBM) says it produced 55,104 ounces of gold in the December 2009 quarter in line with expectations. For the six months to December 31 the miner produced 113,938 ounces of gold at an operating cost of $786 per ounce. The company says it is on track to meet its production guidance for the 2010 fiscal year of between 205,000 and 240,000 ounces of gold at an operating cost of $745 to $820 an ounce. St Barbara says it has no gold or currency hedging. St Barbara posted a $76.34 million loss for the year to June 30, 2009.
Macquarie Office Trust (MOF) has sold its Frankfurt property for $61.7 million today. Upon repayment of debt the return is expected to bring approximately $15 million in cash to the Trust. The transaction will also eliminate the potential need for the Trust to inject $9.2 million dollars in the loan facility for the property, which was expected to occur in February 2010. Chief Executive Officer of Macquarie Trust, Adrian Taylor, says the sale of the property on a cap rate of 6.5% represents progress on the Trusts medium-term strategy to reweight the portfolio back to Australia. Macquarie reported a loss of over $1.3 billion dollars for fiscal 2009.
Gold is trading at US$1,143.10 an ounce and the Aussie dollar is trading at 92.54 US cents.
RIO: Sold this morning the parcel bought yesterday.($77.03/$79) ADO: More news to come, dont know when(Sold 3c/.041c) WOR: Stop loss out at $26(re entered @$25.25) MOG: Nice profit(.155/.165)
