Aussie stocks rise as oil price eases 01/09/2005 05:23:35 PM
The Australian stock market surged on Thursday as oil prices eased, Hurricane Katrina boosted building materials stocks and investors punted on local media laws changing.
Building materials stocks rocketed as devastation caused by Hurricane Katrina created a need for massive rebuilding in the US, Macquarie Equities private client adviser Helen Spencer said.
"The market rose across the board today, fuelled by the oil price being lower and the rally in the US," Ms Spencer said.
Advertisement: "And without a doubt the devastation of the hurricane is going to cause a massive rebuild so companies like James Hardie and Rinker were very strong today because they are set to benefit from the ongoing demand."
At the 1605 AEST close, the S&P/ASX200 index jumped 50.8 points to 4497.6 while the all ordinaries rose 46.6 points to 4460.1 points.
On the Sydney Futures Exchange, the September share price index was up 51 points to 4490.
In the US overnight, the Dow Jones was up 68.78 points at 10,481.60 while the Standard & Poor's 500 Index was up 11.92 points at 1220.33.
Building materials company Rinker rose 81 cents or 5.64 per cent to $15.18, James Hardie picked up 30 cents to $8.92 and Sims climbed 40 cents to $17.89.
Media stocks surged in the wake of Communications Minister Helen Coonan's comments on Wednesday that suggested cross-media ownership laws could be freed up in the near future.
"Its been an incredible positive for the media sector that potential consolidation is more imminent than first thought," Ms Spencer said.
US-based News Corp rose 12 cents to $22.65 and its non voting shares were flat at $21.40.
But local media company Fairfax increased 17 cents or 3.91 per cent to $4.52, Publishing & Broadcasting advanced 48 cents to $16.60, Seven added on 22 cents to $8.32 and Ten picked up eight cents to $3.77.
With crude oil easing below $US70 a barrel overnight local producer Santos shed seven cents to $11.15. But Woodside gathered more strength climbing 36 cents after buying Houston-based Gryphon Exploration Company, which produces gas from offshore fields in the Gulf of Mexico.
In the resource sector, diversified mining giant Rio Tinto climbed $1.49 to $51.80 and BHP Billiton rose 47 cents to $20.93.
Banks were mixed with National Australia Bank retreating 12 cents to $31.19 while ANZ increased 11 cents to $22.27, Westpac advanced 30 cents to $20.04 and Commonwealth Bank added 30 cents to $37.70.
