Banks in demand, and oil companies look the goods

The sharemarket rallied 1.3 per cent yesterday, supported by positive earnings forecasts in the banking sector and higher oil prices fuelling energy stocks.
The ASX 200 index jumped 63 points to 5024.8, while the broader All Ordinaries index was up 55.6 to 4989.1.
"There are some pretty decent outlooks in terms of earnings for the banks so this probably has generated much of the support that pushed the market higher," CMC Markets chief analyst David Land said.
"There was a decent increase in the share price of some local oil companies but I think that some traders might have expected a bit more, considering the overnight jump on the crude price."
US crude oil for September delivery jumped $US2.22 to $US76.98 a barrel on the New York Mercantile Exchange as BP prepared to shut down its Prudhoe Bay oilfield in Alaska, the biggest field in the US.
Woodside Petroleum was up 29c to $42.80, Santos 31c to $11.82 and Oil Search 6c to $4.08. Hardman fell 2c to $1.45.
"The reaction to the price of oil was a very swift one, which shows the concern that the market has for supply levels," Mr Land said.
BHP Billiton rose 19c to $27.80 after slipping earlier in the day on news it has declared a force majeure on copper concentrate contracts as strike action cut capacity at its Escondida mine in Chile to 40 per cent.
Escondida is the largest producer of copper in the world with operator BHP owning a 57.5 per cent stake. Rio Tinto, up 88c to $75.85, holds 30 per cent.
Banks were keenly sought ahead of the Commonwealth's annual results today. The consensus of eight analyst forecasts collected by AAP points to a net profit after tax in cash terms, the bank sector's preferred measure, of $3.89 billion for 2005-06.
CBA shares rose 65c to $46.80, while NAB 50c to $36.43, ANZ 46c to $26.15 and Westpac 35c to $22.75.
St George climbed 52c to $29.33. The bank has bought the margin lending assets of HSBC Bank Australia.
Telstra executives continued to back the decision to pull out of a $4 billion broadband network plan, with its shares gaining 4c to $3.84 after falling 8c on Tuesday.
Childcare group ABC Learning rose 17c to $6.20 after confirming a $US66 million ($86.7 million) purchase of Texas provider Children's Courtyard.
Medical centre operator Primary Health Care posted a 26 per cent lift in annual net profit of $47.5 million and said its growth prospects were strong. The shares were steady at $11.45.

News Corp rose 55c to $26.42 and its non-voters were up 58c to $25.50 after it locked in a three-year $1.2 billion advertising revenue share deal with search engine Google and after News Ltd unveiled plans to launch a new online business for job ads.
News is expected to report a bumper annual net profit tomorrow due to US summer box office success and a rise in TV advertising revenue.
Hills Industries' net profit rose 21.8 per cent to $43.2 million for 2005-06, despite despite rising costs for materials such as steel. Its shares fell 10c to $4.60.
Qantas rose 3c to $3.07 as chief executive Geoff Dixon's contract was extended.
In retail, Coles Myer rose 15c to $10.85 and Woolworths jumped 25c to $19.30. Harvey Norman was up 3c at $3.29 but The Reject Shop was down 3c at $6.32. Millers Retail was steady at $1.42.
Steam distilled water supplier Refresh Group is considering making a rival bid for water distributor Palm Springs, which Coca-Cola Amatil plans to buy. Refresh fell 2c to 18c, Coca-Cola was up 8c to $6.81 and Palm Springs dipped 0.2c to 2.3c.
Goldminers rallied with Newmont 2c firmer at $6.88.