hit the bottom and rebound it will!!!!!!!!, page-21

fin review: mxg slump. Shares drift lower as Mulitplex slumps
AFR staff and wires
2005/07/06



Australian stocks traded lower as strength in the resources sector was overcome by a plunge in Multiplex after Credit Suisse First Boston cut its earnings estimates.

The S&P/ASX 200 Index slipped 8.5 points to 4293.3 at 1241 AEST. The benchmark earlier traded as high as 4316.3, just five points below its all-time record of 4321.7, struck during trading on June 20.

"The market is very stretched trying to find value out there at present, especially at the top end of the market," Shaw Stockbroking senior dealer Jamie Spiteri said.

Mulitplex fell after CSFB analysts Gary Bunce and Aram Margarian said its earnings for the year ended June 30 may fall $17 million short of the $150 million it predicted last week because of Multiplex's unusual accounting of some interest payments.

"We have discovered that most of the market, including Credit Suisse First Boston, has incorrectly interpreted Multiplex's earnings guidance," the analysts said in a report.



The heart of the problem is how Multiplex accounts for interest payment on its step up income distributing trust issued exchangeable securities, or SITES.

Signs of a stronger US economy, the world's largest, helped resource stocks such as BHP Billiton and companies that rely on US earnings such as Amcor.

US factory orders jumped 2.9 per cent in May, the strongest increase in 14 months. A strong sales report from Wal-Mart provided further evidence of resilience in consumer spending in the face of higher oil prices. The Dow Jones industrial average advanced 68.36 points to 10,371.80 overnight.

Oil's foray above $US60 a barrel was positive for oil companies such as Tap Oil.

Light sweet crude for August delivery reached a peak of $US60.10 a barrel overnight before settling back US84¢ higher at $US59.59 a barrel in New York. Oil is less than $US1 below its record high $US60.54 a barrel struck on June 27.

Macquarie, the biggest Australian-owned investment bank, rose after the bank said it would said it would receive $168 million in performance fees from its management of four different funds.

Adelaide Bank advanced after it had reached agreement with the Australian Services Union on a new enterprise bargaining agreement covering its 750 classified staff for the next three years.