Thursday, June 01, 2006

Investors nervous ahead of US interest rates decision

The sharemarket rallied as resource stocks recovered some of Wednesday's losses.
Dealers said corporate activity helped raise hopes but uncertainty over US interest rates fuelled doubt.
ABN Amro Morgans private client adviser Kylie Macdonald said: "It's still very volatile … it seems the US interest rates decision due at the end of the month is at the forefront of everyone's mind."
The ASX 200 index rose 58.9 points to 5060.6, while the All Ordinaries rose 53.8 to 5026.1.
Macquarie Equities adviser Helen Spencer said the market was pushed higher by strength in commodity stocks and overseas markets.
"The market has kicked off the first day of the month on a positive note, making it over the 5000 mark on the All Ordinaries," Ms Spencer said. "It was buoyed by a strong industrial and resource sector on the back of positive offshore leads overnight but the market is still waiting to see how the US fares over the following few weeks."
Rio Tinto rose $1.46 to $79.56, while rival BHP Billiton jumped 42c to $28.65.
Speculation BHP or Rio could make a bid for aluminium group Alcan has resurfaced but analysts said the real target could be the world's biggest producer, Alcoa. Alumina rose 12c to $6.74.
After launching a $1.9 billion takeover bid for rival gaming company UNiTAB, challenging an offer by Tattersall's, Tabcorp rose 37c to $15.59.
UNiTAB rose 16c to $14.76 while Tattersall's fell 8c to $2.89.
The Commonwealth Bank rose 70c to $43.88, ANZ climbed 9c to $26.54 and NAB added 56c to $35.65.
Westpac fell 54c to $22.40.
McGuigan Simeon Wines increased 17c to $2.82 after announcing on Wednesday a $15 million-$20million write-down in the value of its inventory.
Alcoholic beverages company Foster's rose 16c to $5.49 after the company said it was pursuing its appeal rights in a $230 million taxation dispute involving one of its subsidiaries.
Multiplex rose 9c to $3.23 after announcing it had delayed by about a fortnight the date by which it expects to finish most of the work at London's troubled Wembley Stadium.
Multiplex's total losses from Wembley have topped £200 million ($498.75 million).
Telstra added 5c to $3.76, while Optus parent Singapore Telecommunications increased 9c to $2.17.
Among retail stocks, David Jones rose 2c to $2.81, Coles Myer added 12c to $11.49 and Woolworths rose 11c to $18.71.

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