Daily FNArena News - Australia

Goodman Fielder’s profit was a little better than the market had expected and with costs and margins trending in the right direction the outlook continues to improve.

The market had been expecting a decline of around 3% but Australian construction activity for the June quarter fell just 0.1%.

The worst appears behind paint products group Wattyl and brokers have revised up earnings forecasts but most remain cautious given an uncertain outlook for the Australian housing market.

Its new Sydney-Guam cable offers Pipe Network continued upside potential.

Spending by Australian businesses fell heavily in the global economic downturn but as conditions and confidence improves repaired balance sheets mean they are well placed for an upturn.

AWB has confessed exiting Brazil will cost more than expected, leaving the market largely neutral on the outlook for the stock.

Spark Infrastructure posted a better than expected interim result but capex requirements mean equity will need to be raised in coming years and this is creating a divergence in broker views on the stock.

Westpac’s bad debt concerns sparked a big profit-taking session on Friday in the market, providing debate about whether recent confidence has been overplayed.

Market expectations had been for Mortgage Choice to deliver lower earnings in FY10 but guidance from management indicates some growth.

Analysts no longer see why Downer should attract a PE discount.