News Service from House Harris

Australian sharemarket led higher on China package-corrects

(Repeats to correct China package figs)

INDEX MOVEMENT POSITION INDEX MOVEMENT POSITION

S&PASX200 +56.5 4107.8 Dow Jones +248.02 8943.81

All Ords +53.4 4060.0 S&P 500 +26.11 930.99

SPI contract +10.0 4134.0 Nasdaq +38.70 1647.40

GoldUSoz +11.40 746.45 Nikkei +477.98 9060.98

$AUSD +.0163 0.6867 NZSE-50 +46.203 2837.849

MELBOURNE, Nov 10 AAP - The Australian share market firmed more than 1.3 per cent, buoyed by energy and resources stocks in anticipation that China's multi-billion dollar economic stimulus plan would continue to drive export demand.

At the 1615 close AEDT, the benchmark S&PASX200 index was up 56.5 points, or 1.39 per cent, at 4,107.8 while the broader All Ordinaries index had advanced 53.4 points, or 1.33 per cent, to 4,060.

On the Sydney Futures Exchange, the December share price index futures contract had added 10 points to 4,134 on a volume of 38,946 contracts.

China's four trillion yuan, orUS586 billion ($A856.54 billion), stimulus plan, designed to kick-start growth, moved the local market into positive territory as energy stocks saw upside from the plan, IG Markets institutional sales trader Chris Weston said.

"It is about one-fifth of their GDP, so we're seeing a lot of these mid-tier miners are going to benefit because it will add about two per cent to (China's) GDP," he said.

With China accounting for 27 per cent of global economic growth last year, the package should certainly help in averting a global recession, IG Markets research analyst Ben Potter said in a note to clients.

Australia's major miners made strong gains, with BHP Billiton jumping1.96, or 7.02 per cent, to29.89, and takeover target Rio Tinto surging $5.73,or 7.93 per cent, to78.00.

Rio Tinto announced it would cut production of iron ore by 10 per cent due to slowing demand from China.

Energy stocks also made healthy gains, with Santos advancing 53 cents, or 3.84 per cent, to14.34, Woodside Petroleum up $1.41, or 3.54 per cent, to $41.21.

Fund manager Perpetual rose1.34 to $37.54 after it said it had re-opened applications for its income and mortgage funds at the request of clients.

Perpetual has re-opened applications for its Monthly Income Fund, WholesaleMonthly Income Fund and Private Investor Mortgage Fund, which have combined assets of1.7 billion under management.

Stock Move Price

AMP +0.090 5.530

ANZ Bank -0.390 15.900

BHPBilton +1.960 29.890

CBA -2.070 38.000

NAB - 22.150

NewsCorp +0.440 12.640

Polartech -0.004 .077

Rio Tinto +5.730 78.000

TelstraCp +0.100 4.400

WestpacBk -1.090 19.910

Woolwrths +0.180 29.180

News of China's stimulus package was putting in a "fundamental floor" to energy stocks, Mr Weston said.

"We're expecting the stimulus package to feed through from the first quarter of next year and growth to start hitting home," he said.

Hopes of strength in the banking and financials sector were dashed desspiter a good lead from Wall Street, he said.

Australia's major lenders suffered significant losses.

By 1615 AEDT, Commonwealth Bank of Australia had fallen2.07, or 5.17 per cent, to38.00 and Westpac Banking Corporation dropped $1.09, or 5.19 per cent, to19.91.

ANZ Banking Group lost 39 cents, or 2.39 per cent, to15.90, while St George Bank eased 64 cents, or 2.27 per cent, to27.61.

National Australia Bank was n a trading halt after announcing a2 billion institutional capital raising at20 a share that was oversubscribed by theearly afternoon.

"The offer is significantly oversubscribed," NAB deputy chief executive Michael Ullmer told AAP.

"I believe the books closed at 1230 AEDT, and the underwriters are now going through the allocation process."

Investment banks and firms also lost ground, with Macquarie Group easing 33cents, or 1.09 per cent, to29.81 and Babcock and Brown Ltd softening 24 cents to 76 cents.

Gold miners moved into positive territory by 1615 AEDT. Lihir Gold firmed four cents to2.11, Newcrest Mining gained $1.50, or 6.92 per cent, to $23.19 and Newmont Mining Corporation added one cent to3.89.

By 1637 AEDT the spot price of gold in Sydney was upUS746.00 per fine ounce, upUS10.95 per ounce on Friday's local close of $US735.05.

Retailers were mixed, with Harvey Norman down six cents, or 2.03 per cent, to2.89, David Jones gaining 11 cents, or 3.59 per cent, to $3.17 and The Reject Shop losing 23 cents to9.57.

The media sector had mixed results, with Seven Network easing six cents to $5.55, Fairfax Media losing three cents to1.87, and News Corporation gaining 44 cents, or 3.61 per cent, to12.64.

News' non-voting scrip firmed 38 cents or 3.11 per cent, to12.58.

Babcock and Brown Infrastructure was the top traded stock on the Australianmarket, with 68.19 million shares changing hands for6.75 million. Its share price was down 5.3 cents, or 40.77 per cent, to 7.7 cents.

Preliminary national turnover reached 1.23 billion shares, traded for3.91billion, with 447 stocks higher, 476 lower and 1,202 unchanged.

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