THE Australian stock market opened higher on Thursday following a late rally on Wall Street overnight and strong profit results from local companies.
At 10:15am (AEST), the benchmark S&P/ASX200 index was up 18.1 points, or 0.42 per cent, at 4,338.2, while the broader All Ordinaries index rose 16.8 points, or 0.39 per cent, to 4,373.4.
On the Sydney Futures Exchange, the September share price index contract was 18 points higher at 4,319 on volume of 11,130 contracts.
Company profit reports released on Thursday had mixed results, with healthy reports and subsequent share price increases from grocery giant Woolworths, the Virgin Blue airline, casino operator Crown and gas company Santos.
Woolworths shares gained $1.40, or 5.2 per cent, at $28.30 and competitor Wesfarmers, the owner of Coles, was also up 41c at $30.64. But net profit losses were reported by AGL Energy and Insurance Australia Group, owner of brands including NRMA Insurance and CGU.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
Shares in Insurance Australia were unscathed, gaining 3c to $3.30 but AGL suffered a loss of 9c to $15.13 after the company reported a sharp drop to its full year statutory profit.
AGL said a cool start to winter in southern states should boost growth in fiscal 2011.
There was a late rally on Wall Street overnight, despite a bad start to the day's trading.
Investors started the day with more bad news about the economy.
Sales of new homes fell last month to the lowest level on record and durable goods orders grew only slightly last month, a disappointing result for investors.
The Dow was up 19.61, or 0.2 per cent, at 10,060.06.
The Standard & Poor's 500 rose 3.46, or 0.3 per cent, to 1,055.33, and the Nasdaq rose 17.78, or 0.8 per cent, to 2,141.54.
Burrell Stockbroking adviser Daniel Manley said gains on the local market had been influenced by the rally on Wall Street.
But the gains were likely to ease during the day's trade, he said.
"It'd probably be hard to see the market staying up, I would think."
Major mining stocks were down, with Rio Tinto losing 45c at $69 and BHP Billiton dropping 35c at $37.09.
But Fortescue Metals bucked the trend, gaining 6c, or 1.38 per cent, at $4.40.
Shares in mineral sands miner Iluka Resources fell 7c, or 1.33 per cent, at $5.18, after the company booked a net loss for the first half of the 2010 financial year.
Among the big four banks, National Australia Bank lost 4c at $22.73, but Westpac was up 24c, at $21.30, Commonwealth was up 4c at $48.34 and ANZ gained 12c at $22.31.
Making news on Thursday, packaging company Amcor posted a 14 per cent fall in annual profit, but said it expects profits to increase in the current year.
Amcor shares were up 12c, or 1.88 per cent, at $6.51.
The spot price of gold in Sydney was $US1,239.30 per fine ounce at 10:45am, up $US6.42 on Wednesday's closing price of $US1,232.88 per ounce.
Gold stocks were slightly higher, with Newcrest Mining gaining 14c at $35.63 and Lihir Gold up 3c at $4.43.
The top-traded stock by volume was Charter Hall Office, with 32.4 million shares worth $7.6 million changing hands.
Charter Hall Office shares were up 0.5c, or 2.17 per cent, at 23.5c.
Market turnover at 10:49am was 466 million shares worth $1.51 billion, with 349 stocks up, 284 down and 313 unchanged.
Retailers struggle as stocks down at noonHealthier Ford will again pay chairman
