Australian shares edge higher, led by resources, banks

Australian shares edge higher, led by resources, banks

	Published : Fri, 20 Jul 2007 02:33 By : Agencies Print this Story

SYDNEY (Thomson Financial) - Australian shares rose in early trade Friday, led by major resources and banking stocks as investors

reacted to positive leads from offshore markets.

Stuart Smith, private client advisor at Bell Potter Securities, said the domestic market is following

gains on Wall Street though the banks got an extra boost from an upbeat report from Standard & Poor's.

The ratings agency said large Australian banks are well positioned for solid growth, and that their

wealth management arms were benefiting from large inflows of pension savings.

'It is looking like a fairly positive day,' Smith said.

At 11.00 am (0100 GMT), the S&P/ASX 200 was up 23.5 points or 0.4 percent at 6,407.7, while the All Ordinaries advanced 23.7 points or 0.4 percent to 6,442.7.

Most banks sustained Thursday's gains. National Australia Bank rose 11 cents to 40.81 Australian dollars and Commonwealth Bank was up 28 cents at 56.63 dollars. Australia & New Zealand Banking Group added four cents at 29.68 dollars and Westpac moved up three cents to 26.77 dollars.

Macquarie Bank was down 1.14 dollars or 1.2 percent at 90.60 dollars as investors locked in gains after the sharp rise Thursday when the investment bank said its first-quarter profit was substantially

higher than a year ago.

In the resources sector, BHP Billiton rose 69 cents or 1.8 percent to 38.37 dollars and Rio Tinto was up 1.89 dollars or 1.9 percent at 99.34 dollars.

Alumina fell 29 cents or 3.43 percent to 8.17 dollars as traders dumped the stock after deciding the company was not about to become a takeover target.

Alumina, which is Alcoa's alumina joint venture partner, was bid up this week on speculation that it might get caught up in a bidding contest for Alcoa.

Higher oil prices saw Woodside Petroleum gain six cents to 46.48 dollars.

ING Industrial Fund was up 33 cents or 13.75 percent at 2.73 dollars after Goodman Group said it had bought a 9.4 percent stake in its rival industrial property company. Goodman added five cents at 6.43 dollars.

(1 US dollar = 1.14 Australian dollars)

bruce.hextall@thomson.com

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