Commonwealth Bank Net Surges 44% in Australia

123jump.com Staff
15 Jan, 2010
New York City

Shares of banks advanced and Commonwealth Bank said its cash profit for the first half increased 44%. Macarthur coal lifted its first half net earnings forecast to a range between A$37 million and A$42 million.

[R]2:00 PM New York, 6:00 PM Sydney – Shares of banks advanced and Commonwealth Bank said its cash profit for the first half increased 44%. Macarthur coal lifted its first half net earnings forecast to a range between A$37 million and A$42 million.[/R]

Australian share market rose marginally after a profit upgrade by Macarthur Coal and on rising gold prices.

In Sydney trading ASX 200 Index increased 0.03% or 1.6 to 4.899.60.

Of the ASX 200 index stocks 79 gained, 98 decreased, and 23 were unchanged. Paperlinx Ltd. led gainers in the index stocks with a rise of 7.6% followed by Macmahon Holdings gaining 3.9%.

The Australian dollar fell 0.4% to 92.78 US cents.

Commonwealth Bank of Australia, the largest Australian lender said its cash profit surged 44% in first half. Preliminary net profit increased to A$2.9 billion from A$2.01 billion a year ago.

Macarthur Coal Upgrades H1 Profit

Coal producer, Macarthur Coal today upgraded its earnings forecast for the first half ended December 31 to between A$37 million and A$42 million from an earlier guidance between A$30 million to A$38 million, Coal sales soared to 2.8 million tons from the projected sales between 2.4 million tons and 2.7 million tons.

The miner also resumes production of its pulverized coal injection. For the year the coal miner expects earnings to be ahead of market expectations.

Macarthur notes that it will not be able to ship coal from Middlemount in fiscal 2011 on stalling toll agreements on temporary water and rail infrastructure for the mine.

Analysts expected that Macarthur could sale 900,000 tons of Middlemount coal in 2011.

ACCC Reviews Telstra Pricing

Australian Competition and Consumer Commission reported today that it has began a review of the retail price control arrangements that apply to Telstra following a directive made by Minister for Broadband, Communications and Digital Economy Senator Stephen Conroy.

The review is not intended for retail price control arrangements to be discontinued, but to consider “design and level of possible price control arrangements” to Apply from July 2010 to June 2012.

ASX Movers

Karoon Gas Australia Ltd led the decliners in the S&P ASX 200 index with a loss of 6.2% followed by losses in Sundance Resources Limited of 3.1%, in Biota Holdings Limited of 2.9%, in Eastern Star Gas Limited 2.7% and in iSOFT Group Limited 2.6%.

PaperlinX Limited led gainers in the S&P ASX 200 index with a rise of 7.6% followed by gains in Macmahon Holdings Limited 3.9%, in OM Holdings Limited of 3.3% and in CFS Retail Property Trust of 3.1%.

Other Movers

BlueScope Steel Ltd dropped 1.9% to A$3.03 after the steelmaker questioned the recent debt rating revision by Fitch Ratings and said that the rating agency did not take into account information that is not disclosed.

CSR Limited closed unchanged at A$1.98 after the raw sugar miller edged up and plans to proceed with its spin-off. The company rejected a revised offer from China based Bright Food Group Co that valued it A$1.5 billion.

Commonwealth Bank increased 2.3% to A$58.10 and NAB added 0.9% to A$27.30 and Westpac Banking Corp increased 0.5% to A$25.50.

Karoon Gas Australia Ltd fell 6.2% to A$7.50.

Macarthur Coal Limited dropped 1.3% to A$11.38 after the mining company announced that for the first half of 2010, it has raised profit guidance to a range of A$37 million to A$42 million on the expectations of higher sales.

Qantas Airways Limited rose 0.3% to A$2.94 and Cathay Pacific Airways said it is prepared to offer $2 billion to Japan Airlines in commercial benefits over three years. Qantas also said that despite difficulties with its reservation system demand for flights on A380 are strong.

Santos Limited decreased 1.3% to A$13.76 after the oil and gas explorer was cut to “neutral” from “buy” at Bank of America Corp.’s Merrill Lynch.