re: worth a small holding... Mixed trading as bank stocks...

re: worth a small holding... Mixed trading as bank stocks slide
Email Print Normal font Large font December 15, 2006

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AdvertisementAustralian stocks have experienced rocky trading to midday, with the resources sector showing a positive performance but banks in negative territory.

At noon, the benchmark S&P/ASX200 Index was 2.6 points lower at 5,570.5, but the All Ordinaries gained 0.6 points to 5551.5.

Earlier in the day, both indices hit new intraday highs, the S&P/ASX200 rising to 5,587.40 to break yesterday's 5,573.10 record, and the All Ordinaries touched a new high of 5,566.40, beating its 5,550.90 record, also struck yesterday.

On the Sydney Futures Exchange, the December share price index contract rose one point to 5567 on a volume of 28,829 contracts.

"It's been chopping around quite a bit," Macquarie equities adviser Helen Spencer said.

"But after a positive lead from the us overnight, from some positive economic commentary, our markets look stronger."

Ms Spencer said resources are taking centre stage today, thanks to higher commodity prices.

"The resource sector was keeping us just in positive territory, at the expense of banks which are a touch softer, up from their lows of this morning."

At 12.02pm the world's biggest miner BHP Billiton had climbed 17 cents to $26.07, while rival Rio Tinto added 38 cents to $77.32.

But among banks, Westpac slipped 15 cents to $23.87, NAB dropped 16 cents to $39.49 and ANZ shed 14 cents to $28.36, but Commonwealth managed to eke out a gain of 3 cents to $48.13.

ANZ warned today that it does not expect growth in net profit in the 2007 year to be as strong as 2006, given the likelihood of significantly higher loan loss provisions.

At 12.06pm the price of gold in Sydney was slightly softer, down $US1.70 at $US625.1 per fine ounce.

But gold miners resisted the dip. Lihir Gold managed to stay steady at $3.09 and Newcrest Mining crept up 11 cents to $26.28.

Ms Spencer said Toll Holdings was experiencing profit taking after its recent rally on the announcement that it would spin-out its infrastructure operations, its shares down 43 cents or 2.3 per cent at $18.22.

Meanwhile, Qantas was still enjoying yesterday's news of its $11 billion sale, its shares up 2 cents at $5.30, but still below the offer price of $5.60 a share.

The mixed performance on the local exchange came despite US stocks rallying overnight, sending the Dow Jones industrial average to a record close, as strong profits from such companies as Bear Stearns boosted optimism about the economy.

The Dow Jones industrial average gained 99.26 points, or 0.81 per cent, to close at 12,416.76, a record closing high.

The Standard & Poor's 500 Index jumped 12.28 points, or 0.87 per cent, to 1,425.49.

The Nasdaq Composite Index rose 21.44 points, or 0.88 per cent, at 2,453.85.

At 12.25pm, retailers were mixed, Australia's largest Woolworths losing 6 cents to $22.86, but Coles up 12 cents at $13.72 and David Jones 3 cents richer at $3.87.

Media was also failing to show a clear direction, Fairfax steady at $4.90, PBL gaining 53 cents to $22.10, but News Corp lost 17 cents to $28.37 and its non-voting stock shed 15 cents to $27.04.

Broadband company Newsat was the most traded stock by midday, with 173.91 million shares worth $2.36 million changing hands, but its shares steady at 1.2 cents each.

Newsat yesterday reported a 70 per cent jump in first quarter revenue and predicted revenue would continue to grow 50 per cent in the second half.

Market turnover was 1.1 billion shares, worth $2.34 billion, with 541 companies trading higher, 427 lower and 392 unchanged.