Sydney, Aug 30, 2007 (ABN Newswire) -
Australian shares rose have rebounded in morning trade as a strong session in the U.S. overnight encouraged investors to pick up beaten down financial shares, while firmer metal prices lifted mining firms. The U.S. rally came after Federal Reserve Chairman Ben Bernanke said that the Fed was "prepared to act as needed" to ensure credit market troubles do not adversely affect the economy.
At Midday the S&P/ASX200 index has gained 65 points to 6,166 and on the futures market the SPI 200's up 59.
In company news this hour, aaming firm Tattersall's said this morning that its full-year reported net profit more than doubled on earnings from new acquisitions and said it was well positioned for fiscal year 2008 and beyond with a strong balance sheet and steady cash flows. Tattersall's, which bought betting group UNiTAB last year, said reported net profit for the year to June 30 rose to $288.6 million from $128.54 million but economists had expected a higher result and the shares have fallen. Shares in betting firms have been hit this week by an indefinite ban on thoroughbred racing in New South Wales after an outbreak of equine flu. Tattersall's shares are 4.90% lower at $4.66.
The full report is available at the following video and audio links.
Video Link
http://abnnewswire.net/fnnlnk/W5174109Audio Link
http://abnnewswire.net/lnk/F852JJSPAWB said this morning that it will not proceed with its de-merger proposal. The company made the announcement following moves by the grains industry to develop a separate grower-owned and controlled single desk company. The government in May decided to maintain the national monopoly export system, but to move it to a new independent grower-owned group next year. It set a March 1, 2008, deadline for farmers to set up a new entity to manage the single desk. AWB chairman Brendan Stewart said that in light of the grains industry decision to create a new single desk company, AWB does not believe it is sensible or viable to put a de-merger proposal to its shareholders. AWB shares are 1.28% lower at $3.08.
Now let's have a look at warrants from Macquarie Bank. The weakness in Tattersall's has been exacerbated by news that another horse at Sydney's Randwick Racecourse has tested positive for equine influenza, with talk that the track could be shut down for around three months. Warrant traders believing the weakness in the stock is overdone bought leveraged exposure through TTSIMS Sep07 $3.50 Instalment and TTSIMY Sep07 $4.00 Instalment.
BHP Billiton has jumped 1.5 percent in morning trade as investors flock back to the stock on renewed optimism about the state of the US economy. Warrant traders have used the strength in the stock to book in gains through BHPWME Sep07 $35.50 Call.
Turning now to market indices. Almost all of the indexes have rebounded this morning and the index posting the biggest gain by percentage points is the energy index, up 255 points at 13,877. Shares in Roc Oil has soared 15.83% to $3.22 after it announced this morning that it has made an oil discovery at its first exploration well in Angola. Shares in Australian Worldwide Exploration and Straits Resources are also higher.
The Consumer Discretionary index is the worst performing index by percentage points and has lost 1 point to 2,705. Tattersall's shares are one of the biggest decliners and are down 4.9% to $4.66. Macquarie Radio Network and Tabcorp have also lost ground.
In Tokyo, the Nikkei is 205 points ahead and in New Zealand the NZSX50 is up 27.
Gold is currently trading at $666.80 U.S an ounce and one Australian dollar's buying 82.03 U.S cents.
Source: Finance News Network © 2007
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