The market is finishing the week and the month strongly – up 33 – in line with the SFE Futures this morning.

The Dow closed up 83. Dow up 176 at best and down 2 at worst. It was a huge night for commodities and resources. Metals all well up, Oil price up $3.59 and Gold was up $7. US markets at 2009 year highs.

In the news today…

  • Origin Energy (ORG) – Quarterly Report – No big surprises. Says it has achieved record annual sales and production in the 4Q. 4Q Revenue was up 6% to $135.3m. 2P Reserves are at 4,484 PJ with 25 PJ equivalent produced in the Q. ORG up 1.04%.
  • QBE Insurance (QBE) has spent $270m buying a 75% stake in Elders Insurance businesses and will also spend another $45m buying 112.5m Elders shares (12.5% of the company) at 40c. The deal will be financed from existing cash resources. QBE up 0.81%. Elders has been the big mover – up 45% to 37.5c.
  • Australian Worldwide Exploration (AWE) said its FY revenue fell 28% to $590m from $821m, due to lower oil prices and production shortfalls. 4Q revenue fell 22% to $87m. Production just fell short of guidance, coming in at 8.75m barrels compared to 9m, due to maintenance delays. AWE up 3c to 268c.
  • Arrow Energy (AOE) has substantially increased the size of its certified coal seam gas reserves saying it now had 2,581 proven and probable, or 2P, petajoules of coal seam gas at June 30, up 119% from 1,177 PJ at Dec 31. One broker upped its target price on the stock to 495c from 368c. It last traded at 433c.
  • Energy Australia (ERA) has more than tripled its 1H09 profit to $127.5m from $38.9m thanks to higher production and rising average realized prices. ERA up 1.4%.
  • Kagara (KZL) announced copper production in the 4Q reached 8,272 metric tons, up 10% on the last quarter. Zinc output also increased to an 18 month high of 10,188 tons. It is also now debt free thanks to its $226m capital raising. Its IPO for its Mungana gold assets has been pushed back to November after first being planned for July and then September. KZL up 4c to 97c.
  • GPT Group (GPT) announces it is exiting the European component of its JV with Babcock & Brown – GPT up 1.5c to 56.5c – It expects to record a $1.16bn writedown on the investment and says valuations of GPT’s core real estate portfolio ahead of its June 30 mid-year results are expected to fall by $560m, or 6.2%.

Also in the news…

  • The inflation gauge increased 0.9% in July, the fastest monthly rate of increase in the gauge’s 7 year history. It was up 0.4% rise in June.
  • The main event next week is the RBA’s Interest rate decision – most economists are expecting rates to remain unchanged at 3%.

The Dow Futures are up 48 at midday.

MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.

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