Tuesday, January 17, 2006

Another day, yet another record

The sharemarket rose sharply to close at new highs as the resources sector continued to rally.
The ASX 200 index jumped 29.7 points to 4866.1, beating last week's record close of 4838.1. The All Ordinaries gained 31.4 to 4817.3, passing Monday's close of 4785.9.
Both indices broke intraday records with the ASX 200 touching 4868.4 and the All Ords hitting 4818.1.
US markets were closed on Monday for Martin Luther King day.
Shaw Stockbroking head dealer Jamie Spiteri said the "major catalyst towards strength in those first few weeks [of 2006] has been the resources sector, which has again continued to be quite solid today".
"The broader market has certainly participated in that today, just further emphasising the new flow of funds coming towards Australian equities."
Heavyweight miners were stronger with BHP Billiton up 22c to $23.96 while Rio Tinto surged 89c to $71.94.
Energy stocks gained ground as the price of oil continued to hold up - WTI was approaching $US65 a barrel yesterday - with Woodside strengthening $1.43 to $43.40, Santos up 8c at $12.69 and Oil Search up 6c at $4.08.
The banks made small gains and Mr Spiteri said the sector was in the midst of a non-volatile period in light of steady earning projections.
ANZ climbed 15c to $24.52, the Commonwealth rose 5c to $44.17, while Westpac put on 12c to $23.16.
NAB rose 7c to $32.63 after saying it was putting a cap on pension increases for its UK staff in an attempt to cut down a £426 million ($1 billion) deficit in its defined benefits pension schemes.
St George Bank lost 9c to $29.75 while Macquarie surged $1.34 to $71. Its Macquarie CountryWide Trust rose 1c to $1.98 after spending $US269.8 million ($359.4 million) to increase its stake in US shopping centre owner First Washington to 75 per cent.
AWB fell 16c to $6.02 as the investigation continued into its conduct in selling wheat to Iraq and the company yesterday was dumped from an index listing companies which are deemed socially responsible.
Media stocks were mixed with John Fairfax losing 3c to $4.01 and PBL up 9c to $17.27.
Tabcorp fell 14c to $15.35 and Telstra rose 3c to $3.99.
Clean Seas Tuna fell 1c to 44c. The Port Lincoln fish farmer said it was on track to achieve its objectives for tuna, kingfish and mulloway breeding.
Cape Lambert Iron Ore fell 2c to 34c. The junior miner plans to float off its gold assets in a $3 million raising.
Goldminers continued to rally with Newcrest 2c firmer at $25.45, Newmont up 10c to $8.08 and Lihir up 3c to $2.45.
The spot price of gold was trading at $US562 an ounce, up $US4.875 on Monday's close.

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