Friday, April 07, 2006

Resources underpin latest record

The Australian sharemarket has continued its record-breaking run, urged on by rising oil prices and a buoyant resources sector.
"Another day, another record broken," said Macquarie Equities client adviser David Halliday. "The strength of this market is just undeniable, and again it is the resources that are doing all the heavy work."
The benchmark
S&P/ASX 200 Index was up 31.9 points to 5238.9, beating the previous record, set on Wednesday, of 5207.0.
The All Ordinaries closed 31.3 points ahead at a new high of 5190.3, overcoming
Wednesday's record of 5159.0.
At the end of day trading on the Sydney Futures Exchange the June share price contract was up 29 points to 5260.
One of the biggest movers was materials company Rinker Group, which gained $1.56, or 7.73 per cent, to $21.74.
"The market is going to keep rewarding these companies that continue to deliver good news for shareholders," Mr Halliday said.
"People now are becoming very comfortable with the fact that these resources are going to remain high, and this strength in demand is going to continue for a long time."
Rio Tinto closed $2.29 stronger at $83.80 and global miner BHP Billiton gained 33¢ to $29.82.
Elsewhere, the rising oil price helped Woodside Petroleum find 20¢ to $45.30 and Santos was 30¢ stronger to $12.08.
In the financial sector, the Australian Stock Exchange Ltd gained $1.93 to $33.70, SFE Corporation was up 89¢ to $16.60 and Macquarie Bank put on $1.24 to $69.
The big banks were mixed, with Westpac down 35¢ to $24, National Australia Bank shedding 35¢ to $37.22 and ANZ down 15¢ to $26.63.
Commonwealth Bank of Australia moved against the trend, gaining 5¢ to $45.55.
St George lost 16¢ to $30.60.
In the telco sector, Telstra fell 1¢ to $3.68 and Optus-owner Singapore Telecommunications lost 4¢ to $2.26.
Several media stocks rose, with Fairfax up 15¢ to $4.07, Publishing and Broadcasting Ltd 31¢ stronger to $18.17 and News Corp up 6¢ to $24.72. Seven Network slipped 6¢ to $9.48.
Wheat exporter AWB lost 8¢ to $3.93 after it launched a Federal Court challenge in a bid to prevent a drafted letter of apology being published.
The spot price of gold in Sydney was $US593.775, up $US9.025 on Wednesday's close.
Gold miner Newmont gained 17¢ to $7.38, Newcrest was 40¢ stronger to $23.70 and Lihir Gold jumped 18¢ to $2.85.
In the US overnight the Dow Jones industrial average rose 35.70 points to 11,239.55.

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