Australian shares close higher on resource and bank stocks

Australian shares close higher on resource and bank stocks - UPDATE

	Published : Thu, 18 Jan 2007 07:02 By : Agencies Print this Story

SYDNEY (XFN-ASIA) - Share prices closed up as investors bought resource and bank stocks, reversing yesterday's selling action and helping to boost sentiment for the wider market, dealers said.

They said energy stocks also rose after oil prices jumped in overnight trading on bargain-hunting.

The S&P/ASX 200 advanced 26.3 points or 0.47 pct to close at 5,672.4, just shy of Monday's record close of 5,673.8.

The key index closed below the day's high of 5,679.5 and above the low for the day at 5,650.9.

The broader All Ordinaries index rose 24.6 points to close at a fresh record close of 5,650.7, surpassing Tuesday's record close of 5,650.4.

Dealers said global miner Rio Tinto clawed back some of yesterday's sell-off as analysts expect the company to report a record profit for 2006 when the earnings result is released on Feb 1. Current estimates are for a 40 pct jump from the record profit of 5.215 bln usd for 2005.

Rio Tinto shares ended up 0.57 aud at 71.87 aud while BHP Billiton rose 0.22 to 24.74.

Australia's largest independent oil producer Woodside climbed after it reported 2006 revenue rose 38.7 pct to a record 3.810 bln aud, propelled by higher oil prices and production rising 12.8 pct to a record 67.9 mln barrels of oil equivalent (boe).

Woodside shares advanced 0.90 to finish at 36.60, Santos added 0.02 to 9.62 and Oil Search gained 0.05 to 3.31.

CSR slipped as yesterday's speculation of a private equity takeover for the sugar processor and industrial conglomerate failed to eventuate.

CSR shares eased 0.04 aud to close at 3.85.

A total of 1.48 bln shares traded, worth 4.99 bln aud, with rises outnumbering falls 642 to 539 while 351 stocks were unchanged.

The S&P/ASX200 March futures contract was up 17.0 points at 5,642.0.

The 10-year bond yield gained 0.0155 to 5.8775 pct while 90-day bills added 0.001 at 6.458 pct.

Aequs Securities head of institutional trading Ric Klusman said the market gained on support for leading banks and resources stocks.

'BHP and Rio clawed back some ground as some people think they have been oversold but the copper price is still a concern with stock levels still building,' Klusman said.

He said leading gold stock Newcrest fell despite a rising gold price.

'It looks like some large institutions are getting out, maybe because they are worried about operational issues,' Klusman said.

He said corporate activity is relatively subdued with a number of key takeovers, including an offer for Rinker by Mexico's Cemex and a buy-out offer for Qantas, in a holding phase, awaiting regulatory approvals.

'In Rinker's case everyone was waiting for a Cemex to increase the bid but from its previous history that doesn't look like its going to be the case,' Klusman said.

He said CSR fell although there may be some substance to it being a prime takeover target.

'It is a fairly good break-up story with separate businesses -- sugar, building products and aluminum - sugar might be the hard one to find a buyer for,' Klusman said.

National Australia Bank shares rose 0.24 aud to close at 40.26, Commonwealth Bank was up 0.31 at 49.36, ANZ climbed 0.32 to 28.10 and Westpac gained 0.16 to 24.07.

Macquarie Bank advanced 0.25 to 79.05 but Babcock & Brown fell 0.10 to 25.37.

Suncorp-Metway climbed 0.37 to 21.67, Promina gained 0.08 to 7.25, QBE added 0.03 to 29.66 but IAG eased 0.02 to 6.52 and AMP slipped 0.04 to 10.31.

Telstra added 0.03 to 4.42 which is its highest level since Sept 2005 while its T3 receipts also rose 0.03 to 3.00 but SingTel shed 0.05 to 2.82.

News Corp lost 0.25 to 30.27 and its non-voting stock retreated 0.09 to 28.86.

Zinifex rose 0.22 to 16.85, Alumina was steady at 6.33 while Iluka eased 0.02 to 6.18.

Newcrest dropped 1.24 or 4.89 pct to 24.11 while Lihir Gold slipped 0.02 to 2.93 but Oxiana gained 0.01 to 2.93.

Orica was up 0.58 at 24.33 but Dyno Nobel fell 0.07 to 2.47.

Brambles slipped 0.02 to 13.44, Amcor shed 0.06 to 7.19 and PaperlinX lost 0.17 or 4.31 pct to 3.77.

Rinker fell 0.05 to 18.20, James Hardie dropped 0.12 to 9.80 while Boral gained 0.10 to 8.34.

Qantas added 0.01 to 5.37, Toll Holdings jumped 0.84 or 4.39 pct to a record close of 19.99 but Virgin Blue retreated 0.04 to 2.44.

Woolworths rose 0.20 to 22.91, Coles gained 0.08 to 13.98 and David Jones added 0.01 to 4.27.

Westfield advanced 0.15 to 20.95 and Stockland gained 0.05 to 8.10.

Foster's added 0.02 to 6.78, Lion Nathan rose 0.12 to 8.22 but Coca-Cola Amatil shed 0.14 to 7.71.

(1 usd = 1.27 aud)

paul.daniel@xfn.com

Australian shares close higher on resource and bank stocks - UPDATE