News: Market Wrap: Aus shares gain nearly 2%

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A jump in the oil price over the weekend has given investors confidence with energy stocks extending the rally that started on Thursday. The market added a further 1.94 per cent today taking the rebound to an over 5 per cent recovery over three sessions. 

 

The S&P/ASX 200 index closed 103 points up to finish at 5,442. 

 

The value of trades was $4.4 billion on volume of 814 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia (ASX:CBA) which reached a new record high of $85.29 in intra-day trade. BHP Billiton Limited (ASX:BHP) and ANZ Banking Group (ASX:ANZ) rounded out the top trio. 

 

On the futures market the SPI is 93 points up

 

Company news
 

Fairfax Media Limited (ASX:FXJ) will pocket $96 million in cash after striking two deals involving its radio assets. The media company will merge its Fairfax Radio Network, excluding 96FM, with Macquarie Radio Network Limited (ASX:MRN)  in exchange for $18 million in cash and a 54.5 per cent stake in the enlarged Macquarie. Fairfax has also agreed to sell its Perth-based 96FM to APN News and Media Limited (ASX:APN) for about $78 million.  Shares in Fairfax Media are up 1.81 per cent to $0.84.

 

Kathmandu Holdings Limited (ASX:KM, NZX:KMD)) has flagged a dip in first half profit after disappointing sales in the lead up to Christmas. After enjoying a 19 per cent rise in sales to mid-November, sales have now slowed to a 14 per cent increase to 21 December which is well below the same pre-Christmas sales period last year. Acting CEO Mark Todd says that full year profit depends second half trading which contributes up to 70 per cent of total year profit.  Shares in Kathmandu have plunged 21.59 per cent to $2.07.

 

Federation Centres Limited (ASX:FDC) announced the sales of its regional Victoria asset  Mildura Central shopping centre to Novion Enhanced Retail Fund for $110 million realising a 7 per cent premium on book value.

 

WorleyParsons Limited (ASX:WOR) has won a 3 year extension on its multi-use contract with Canadian integrated energy company Suncor. 

 

Austal Limited (ASX:ASB) says its US division has won a $17.6 million contract modification for class services in support of the Littoral Combat Ship program. 

 

And Transfield Services Limited (ASX:TSE) has rejected a sweetened takeover offer valued at $2.00 per share from Spanish company Ferrovial Services

 

Best and worst performers

All sector made gains today, the best performing sector was energy adding 4.1 per cent to close at 11,853. The sector making the least gains was utilities, adding 0.3 per cent to close at 5,964 points.

 

The best performing stock in the S&P/ASX 200 was Arrium, rising 25.81 per cent to close at $0.20. Shares in Evolution Mining and Northern Star Resources also closed higher.

 

The worst performing stock was the aforementioned Kathmandu Holdings. Shares in Transfield Services and Atlas Iron also closed lower. 
 

Commodities

Gold is trading at $US1,198 an ounce. Light crude is $2.77 up at $US57.13 a barrel. The Australian dollar is buying 81.67 US cents.