Rush for resources keeps bulls snorting

The Australian sharemarket's record run has continued into the new year as investors' seemingly insatiable appetite for resource stocks shows few signs of abating in the short term.
Gold stocks were among the biggest winners yesterday as the price for the precious metal soared.
In its second consecutive day of record highs, the ASX 200 benchmark index rose 44.3 points to 4820.3 and the All Ordinaries gained 44 points to close at 4765.1.
CMC Markets analyst David Land said investors' bullish outlook for commodities again helped to push up the bourse.
Rio Tinto surpassed the $70-a-share barrier yesterday, closing up $1.16 at $71.06, and BHP Billiton rose 67c to $23.85.
"For both Rio and BHP people are willing to take on greater and greater positions in those companies because they believe the earnings outlook is worth the prices," Mr Land said.
Uranium stock Paladin Resources was a star performer yesterday, rising more than 10 per cent to $2.18. Last year the stock rose 325 per cent.
"If Paladin's share price is anything to go by, interest still does exist in the uranium sector," Mr Land said. "It's an amazingly exciting stock to people because more and more focus is on the price for uranium globally."
Gold stocks benefited from the spot price of gold surpassing the $US530 an ounce barrier. Newcrest Mining rose more than 5 per cent to $25.94 and Lihir Gold jumped 10c to $2.34.
Energy stocks rose on the back of an increase in the price of crude oil to $US63.10 a barrel, as well as uncertainty over European natural gas supplies after Russia temporarily cut supplies to Ukraine. Woodside Petroleum jumped 80c or 2 per cent to $40.80 and Santos rose 14c to $12.51.
Among the small caps, Murray Boyte's Ariadne has enjoyed a golden run recently, rising 35 per cent in December.
But investors didn't get too excited yesterday when the property developer said it had sold its 10 per cent stake in hospital car park operator IPG for $5.2 million. Shares in the company fell almost 4 per cent on Tuesday and were unchanged at 52c yesterday.
Meanwhile, Patrick closed up 2c to $7.44, and is up 8c since just before Christmas, which analysts say is a sign Toll might have to lift its mixed cash and scrip takeover bid for the transport group. Toll fell 1c to $14.90.
Colonial First State's head of investment markets research, Hans Kunnen, said investors' keen interest in resource and energy stocks was a "touch disturbing" because commodity prices were rising as inventories did likewise. "They shouldn't both be going up at the same time," he said. "There is a sense of disquiet because the fundamentals are not lining up.

"The iceberg is exuberance in commodity markets. The last time I saw exuberance of this kind was in the IT boom."
YESTERDAY'S MOVES Rises 654 Falls 421 Steady 268
Mar SPI 4808.0 +46.0
ASX 200 4820.3 +44.3
Financials 5619.4 +29.9
Industrials 5490.0 +32.7
Energy 11,442.8 +169.2
Volume Value 1.021bn 3.020bn
WINNERS ▲ Paladin Resources +10.10%
Kimberley Diamond +5.38
Spotless Group +5.21
Newcrest Mining +5.11
PMP +4.73
Fortescue Metals +4.55
Lihir Gold +4.46
Peptech +4.33
Aquarius Platinum +3.60
Crane Group +3.33
LOSERS ▼ Novogen -2.57%
Ramsay Health -2.42
SFE Corp -2.28
Invocare -2.15
Gunns -2.13
Zinifex -1.85
Bank of Queensland -1.78
Alumina -1.47
David Jones -1.26
Challenger FSG -1.25
MONEY $A/US¢74.19+0.42
TWI63.0 steady
90-day bank bills5.637+0.005
3-year bonds5.180-0.060
10-year bonds5.193-0.032