3:00AM New York, 7:00PM Sydney- ASX 200 index gained 1.8%. Woolworth first half profit rose 28% on higher sales. Westfield earnings rose 11.6%.

Market Sentiment

ASX 200 index rose 1.8% or 101.1 to close at 5,767.20

The Preliminary market turnover was 1.53 billion worth $7.19 billion, with 653 stocks trading higher, 600 trading lower, and 330 unchanged. The most active stock on the ASE was ABC Learning with 156.96 million shares worth $268.94 million.

Woolworths Limited first-half earnings up 28%

Australia''s biggest retailer, Woolworths Ltd posted first-half net income rise of 28% to $891.3 million in the six months ended Dec. 30 on the back of an 8.6% growth in sales. The profit in the same period in the previous year was $695.6 million. Sales growth in the first half of fiscal 2008 declined to 8.6% from 15.9% in fiscal 2007.

Sales rose to $24 billion from $22.1 billion during the corresponding period last year. Earnings before interest and tax for the retailer were up 20% to $1,379.9 million from $1,145.6 million a year earlier. EBIT growth declined in the first half to 20% from 270% a year ago.

The company''s biggest unit, Australian and New Zealand supermarkets achieved a 19% rise in EBIT to $1.04 billion while revenue gained 7.9% to $20.32 billion. The company opened 19 supermarkets in the first half and plans to open 12 new stores in the second half.

Profit after tax rose 28.1% to $891.3 million compared to 28.1% rise in profit to $695.6 in the previous first half year. Earnings per share jumped 25.9% to 74.06 cents from 58.83 cents a year ago.

Woolworths declared an interim dividend of 44 cents, up from 35 cents in the first half of fiscal 2007. Its share rose 4.2%.

The company now operates 13 stores in India under licensing agreement with Tata Group under the name Croma with total sales of $46 million and a loss of $2.3 million.

The company issued interim dividend of 44 cents keeping its payout ratio of 60%. Return on equity in the first half rose to 14.97% from 13.74% a year ago and return on capital increased to 18.09% from 15.07% a year ago.

The company guided fiscal 2008 profit increase between 19% and 23%.

Gainers and losers

Of the ASX 200 index stocks, Timbercorp Ltd led the gainers with a rise of 18.1% followed by increases in Allco Finance of 9.6%, in ABB Grain Ltd of 9%, in Santos Ltd of 7.5%, and in Gunns Limited of 7.5%.

Of the ASX 200 index stocks, AED Oil Ltd led the decliners with a fall of 9.8% followed by losses in Riversdale Mining of 9%, in QBE Insurance of 5%, in Seven Network of 4.7% and in Centro Retail Group of 4.6%.

NAB to acquire bank in the US Northwest

National Australia Bank Ltd Chief Executive Officer John Stewart today told industry gathering that his bank was considering an acquisition in the U.S. Northwest.NAB stock rose 4.1% after the talks.

Stewart said that they were targeting a bank with a large customer base of farmers that don''t rely on government subsidies.

National Australia has been on the search of new business after a currency trading scandal in 2004 and $2.2 billion in write-downs from the 1998 acquisition of Florida-based mortgage company HomeSide Lending Inc.