Sydney, Sept 20, 2007 (ABN Newswire) -
Australian shares have risen in morning trade as banks extended gains after the U.S. Federal Reserve's aggressive rate cut soothed concerns over the health of financial markets, while a jump in metal prices boosted miners. The index is now just 49 points, below its all-time closing high of 6,436.7 set on July 13.
However, dealers said that trading was likely to be volatile on Thursday due to the expiry of the September share price index futures.
At Midday the S&P/ASX200 index has gained 31 points to 6,388 and on the futures market the SPI 200's up 48.
The full report is available at the following video and audio links.
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http://abnnewswire.net/lnk/3M13L5FHIn company news this hour, OneSteel this morning announced plans to invest over $20 million in two of its production facilities in Newcastle. The steel manufacturer said the investments in its technology in rail wheels and wire rope would allow it to continue to meet customer requirements in the rapidly growing niche markets. In a statement, the company said that by increasing manufacturing capacity by 21,000 wheels to 105,000 wheels per annum, it would be able to maintain its existing share in this growing global business with a very high degree of sustainability and market differentiation. OneSteel shares are 0.3% higher at $6.73.
Macquarie Global Property Advisors, a real estate investment firm partly owned by Macquarie Bank said it has submitted the highest bid of $1.34 billion US dollars for a one hectare plot of land in downtown Singapore. The firm's bid in the government land sale topped a rival offer from a consortium comprising of a government owned development group as well as a bid by Malaysia's IOI Group. A spokesperson for CB Richard Ellis Research said the site will yield at least 800,000 square feet of office space. Macquarie Bank shares are 0.58% higher at $77.55.
Now to warrants from Macquarie Bank. Index warrant activity has been a feature of today's warrant activity, as traders believing the market has run ahead of itself open positions to the downside through XJOUMQ Oct07 6300 Put and XJOVMR Oct07 6600 Put.
Paladin Resources shares have tiptoed lower to give back some of the stock's strong gains of late. Traders anticipating a pullback bought downside exposure through PDNWMQ Nov07 $6.00 Put.
Turning now to market indices. The index posting the biggest gain by percentage points is the Materials index, up 165 points at 14,532. Shares in Mincor Resources are up 7.09% to $4.08 while Sally Malay Mining and Minara Resources are also higher.
The index with the most significant loss by percentage points is the Utlities index, down 35 points to 7,323. SP Ausnet shares are down 2.52% to $1.355. Duet Group and Envestra shares have also lost ground.
In Tokyo, the Nikkei is down 8 points but in New Zealand the NZSX50 is up 11.
Gold is currently trading at $723.40 U.S an ounce and one Australian dollar's buying 85.99 U.S cents.
Source: Finance News Network © 2007
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