Aust stocks open higher after moderate US gains=3D3
11 Dec 2008 11:11 AM
INDEX MOVEMENT POSITION INDEX MOVEMENT POSITION
S&P/ASX200 +2.3 3643.0 Dow Jones +70.09 8761.42
All Ords +4.0 3577.3 S&P 500 +10.57 899.24
SPI contract +26.0 3647.0 Nasdaq +18.14 1565.48
Gold $USoz +27.05 805.90 Nikkei 0 8660.24
$A/USD -.0039 0.6553 NZSE-50 +23.601 2735.150
SYDNEY, Dec 11 AAP - The Australian sharemarket opened a little higher after gains on Wall Street offer early support.
At 1015 AEDT, the benchmark S&P/ASX200 index rose 2.3 points, or 0.6 per cent, to 3,643, while the broader All Ordinaries index was up four points, or 0.11 per cent, at 3,577.3.
On the Sydney Futures Exchange, the December share price index contract was 26 points higher at 3,647 on a volume of 5,774 contracts.
The major miners were in positive territory, with BHP Billiton up 69 cents at $31.05.
Rival miner Rio Tinto, which on Wednesday announced that it plans to slash 14,000 jobs, cut spending and costs and sell assets due to the global economic crisis, was $2.70 or 7.22 per cent higher at $40.10.
In the banking sector, Westpac gained three cents to $16.40, Commonwealth Bank was steady at $28.50, National Australia Bank picked up one cent to $19.61 and ANZ lifted six cents to $14.21.
US markets managed a moderate gain overnight after a back-and-forth session that saw investors snapping up energy and materials stocks and dumping financial shares.
The Dow Jones industrial average rose 70.09, or 0.81 per cent, to close at 8,761.42.
The Standard & Poor's 500 index rose 10.57, or 1.19 per cent, to 899.24, and the Nasdaq composite index rose 18.14, or 1.17 per cent, to 1,565.48.
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Stock Move Price
AMP -0.040 5.210
ANZ Bank +0.090 14.240
BHPBilton +0.530 30.890
CBA -0.020 28.480
NAB +0.060 19.660
NewsCorp +0.170 13.300
Polartech +0.011 .105
Rio Tinto +3.160 40.560
TelstraCp -0.080 4.190
WestpacBk +0.040 16.410
Woolwrths -0.780 26.300
CMC Markets analyst David Taylor said the market's early gains had turned to a drop of about two per cent at 1044 AEDT as bank falls outweighed strong resources.
"It was a pretty descent scenario we were looking at last night with base metals up, oil up and gold up," Mr Taylor said.
"But at the moment banks and consumer spending are leading the decline so it's not the happy picture we were hoping for.
"Fortunately BHP and Rio as well as Fortescue Metals are doing well, so commodity prices have helped the market to be perhaps not as low as it might otherwise be."
In the retail sector, Wesfarmers, which owns Coles, was 50 cents, or 3.06 per cent, lower at $15.85 and Woolworths fell $1.00, or 3.69 per cent, to $26.08.
David Jones lost five cents to $2.96 while Harvey Norman was steady at $2.30.
In news this Thursday, Fortescue Metals says it has no explanation for its share price movement to a high of $2.85 on Wednesday, from $2.34 on Tuesday
Fortescue was up seven cents or 2.56 per cent at $2.80.
Oil prices jumped amid volatile trading on Wednesday as a US government report showed crude inventories were much slimmer than expected.
In energy, Woodside dropped 87 cents to $32.83, Santos fell five cents to $13.85 and Oil Search increased one cent to $4.77.
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At 1051 AEDT, Fairfax, which announced its new chief executive Brian McCarthy on Wednesday, fell three cent to $1.475, News Corp was up six cents at $13.19, while its non-voting scrip lifted 12 cents to $12.61.
Seven Network lost 31 cents, or 4.75 per cent, to $6.21 and Ten Network fell seven cents, or 6.19 per cent, to $1.06.
Qantas was down nine cents at $2.30, while Virgin Blue was down half a cent at 27.5 cents.
Telstra decreased nine cents to $4.18 while its rival, Optus owner Singapore Telecommunications, added three cents to $2.70.
At 1052 AEDT, the price of gold in Sydney was $US802.60 per fine ounce, up $US23.70 on Wednesday's close of $US778.85.
Among gold stocks, Lihir was 13 cents or 5.75 per cent higher at $2.39, Newcrest lost 10 cents to $28.49, while Newmont was up 28 cents, 5.6 per cent, at $5.28.
At 1101 AEDT, the most traded stock was Mintails Ltd, with 30.69 million shares worth $793,117 changing hands.
Its shares were up half a cent, or 15.62 per cent, at 2.7 cents.
Market turnover was 305.39 million shares, worth $1.17 billion, with 230 stocks up, 377 down and 199 unchanged.
