Markets

The benchmark S&P/ASX200 was 70.5 points higher at 5,608.1, while the broader All Ordinaries was up 66.3 points at 5,669.4.

On the Sydney Futures Exchange at 2.17pm, the March share price index contract was up 48 points at 5,591 on 26,261 contracts.

CommSec chief equities economist Craig James said it was a skittish day on the market, with rollercoaster-like volatility.

“There doesn’t seem to be a lot of rhyme or reason to the action for a lot of stocks,” Mr James said.

“JB Hi-Fi came out with what we considered to be a strong result, but its share price was down nine per cent (in intraday trade).

“David Jones came out with a strong result and upgraded guidance yesterday and is down today - it doesn’t make a lot of sense.

“We thought the market would settle down a bit, but it hasn’t.”

Mr James said discretionary retailers were the hardest hit as concerns abounded that a further round of rate hikes by the Reserve Bank of Australia would curtail consumer spending.

Woolworths lost 55 cents to $27.55, Coles owner Wesfarmers shed 57 cents to $37.15, David Jones was off two cents to $3.98 and Harvey Norman dropped 12 cents to $4.72.

Shares in JB Hi-Fi closed down $1.05, or 8.31 per cent, at $11.59 despite it reporting a record half year net profit, up 60.23 per cent for the six months ended December 31.

“Telstra continues to do well and is considered something of a safe-haven stock at this time,” Mr James said.

“It’s seen as not being affected by interest rates.”

Shares in Telstra finished eight cents higher at $4.59. Telstra instalment receipts were up eight cents up at $3.02

On Wall Street overnight, the Dow Jones industrial average gained 57.88 points at 12,240.01, Standard & Poor’s 500 Index was up 7.83 points at 1,339.12 and NASDAQ Composite Index was up 15.21 points at 2,320.06.

Locally, the big diversified miners were stronger. BHP Billiton $1.06, or 2.96 per cent, to $36.91, while its takeover target Rio Tinto gained $6.03, or 4.95 per cent, to $127.80.

Analysts expect Rio Tinto to deliver a drop in full year profit tomorrow.

The big four banks were mostly stronger. National Australia Bank was up 20 cents to $32.20, Commonwealth Bank gained 65 cents to $49.40, Westpac shed six cents to $24.24 and ANZ was up 50 cents at $25.30.

Making headlines today, shareholders in grains marketer AWB rejected a company recommendation to scrap its dual-share structure.

AWB closed 12 cents, or 5.53 per cent, higher at $2.29.

Hearing-implant company Cochlear reaffirmed its full-year core earnings guidance after posting a 17 per cent boost in first-half net profit.

Cochlear shares were down $6.05, or 9.31 per cent, to $58.95.

Real estate developer Mirvac Group reaffirmed its full-year earnings guidance after posting an 86.4 per cent boost in first half net profit.

Mirvac shares shed eight cents to $4.40.

Uranium explorer Marathon Resources lost 21 cents to $1.42 after announcing it would remove drilling rigs at its Mt Gee project following concerns raised regarding the disposal of waste material.

Among the media sector, Consolidated Media Holdings edged two cents higher to $4.43, Fairfax was up one cent at $4.06, News Corp had dipped 11 cents to $22.21 and its non-voting shares shed 28 cents to $21.48.

The energy sector was higher, after Nymex crude rose $US1.92 overnight to $US93.69 a barrel.

Woodside added $2.38 to $46.30, Santos found 29 cents to $13.64 and Oil Search gained 13 cents to $3.95.

The spot price of gold in Sydney was $US921.00 per fine ounce, down 20 US cents on yesterday’s close of $US921.20 per fine ounce.

Among the gold producers, Newcrest was up 79 cents to $36.73, Lihir was one cent higher at $3.69 and Newmont was steady at $5.68.

Empire Oil & Gas was the most traded stock, with 256.692 million shares changing hands worth $6.5 million.

The oil and gas explorer added 0.5 cents to 2.7 cents.

Preliminary market turnover reached 1.5 billion shares worth $5.99 billion, with 503 stocks up, 702 down and 338 unchanged.

AAP