Trading Room home page

Aust share market closes higher

Market watch top headlines

World reports

Stocks to watch

ARI, ASL, DOW, FXJ, TEN, SYD, TSE,

AAP

2013-02-07

The Australian share market has closed higher, boosted by some positive company earnings reports and better-than-expected unemployment figures.

On Thursday, the benchmark S&P/ASX200 index climbed 14.7 points, or 0.3 per cent, to 4,935.7 points, while the broader All Ordinaries index was up 15.3 points, or 0.31 per cent, at 4,955.8 points.

On the ASX 24, the March share price index futures contract was 11 points higher at 4,894 points, with 23,175 contracts traded.

"We saw three major companies report this morning: NAB (National Australia Bank), Telstra and News Corp," IG Markets market strategist Evan Lucas said.

"NAB is really driving that market harder."

NAB is on track to post a $6 billion full year cash profit after improving earnings in the first three months. NAB rose 52 cents to $28.63.

"The other thing that is driving up further is Telstra," Mr Lucas said.

Telstra gained six cents to $4.64 as it lifted its first-half profit and said it was on track to achieve its full-year growth targets.

News Corp fell 89 cents to $26.60 as it more than doubled first-half profit after increasing its stake in pay TV network Fox Sports.

Mr Lucas said News Corp's result was slightly ahead of expectations, but the company had downgraded its full-year guidance.

Mr Lucas said the headline figures on unemployment released in Australia on Thursday were also better than expected but were based more on an increase in part-time jobs.

Figures released by the Australian Bureau of Statistics showed that the unemployment rate remained steady 5.4 per cent in January.

The market forecast was for the unemployment rate to rise to 5.5 per cent in the month.

Among other stocks, airline operator Virgin Australia descended 1.5 cents to 43.5 cents after the competition watchdog said it was concerned the airline's $35 million plan to buy a major stake in budget carrier Tiger Airways may compromise domestic air travel.

Gambling firm Tabcorp jumped eight cents to $3.16 as it reported a 62 per cent fall in first half net profit. But the result was heavily skewed by the discontinuation of the the company's poker machine operations.

Whitehaven Coal dumped 17 cents at $3.02 after news that the federal government had delayed its decision on whether to allow it to develop its controversial Maules Creek mine in northern NSW.

Property developer Australand sagged eight cents to $3.42 as it said it expects its investment portfolio to underpin growth in 2013, following a 28 per cent jump in full year profits last year.

The price of gold in Sydney was $US1,681.05 per fine ounce, up $US7.10 on Wednesday's closing price of $US1.673.95.

National turnover was 1.69 billion securities worth $3.99 billion, with 495 stocks up, 454 down and 352 unchanged.