Sydney, Sept 24, 2007 (ABN Newswire) -
Australian shares could start the week on firm ground, buoyed by a positive finish on Wall Street; mining firms should get a boost from stronger metal prices.
On Friday the S&P/ASX200 was lost 36 points to finish at 6,358; on the future's market the SPI200 is up 28.
Turning to currencies, the Australian dollar has slipped from an 8 week high; at 8:50 AM the Aussie is buying 86.82 US cents, on the crosses the dollar is buying 100.18 yen, 61.62 Euro cents, and 42.96 British pence.
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http://abnnewswire.net/lnk/0253P8RGMaking news headlines this morning is Newcrest Mining; shares were down 0.83% to $28.56 on the ASX Friday. The company's chief executive, Ian Smith, told the ABC's Inside Business program yesterday that the company still has no plans to merge with Lihir Gold. Newcrest's recent move to raise $2 billion to get rid of its hedgebook, combined with Lihir's decision to do basically the same thing earlier this year, led to rumours of a potential tie-up between the two. A combined entity would produce more than 2 million ounces of gold a year. Smith said Newcrest has not received any takeover approaches, but some analysts are calling it a distinct possibility. Newcrest Mining saw earnings drop significantly in fiscal 2007 after taking a charge to restructure its gold hedge book.
Shares in clothing manufacturer Gazal Corp shares were steady at $2.28. Gazal reportedly hopes to have its Mambo brand sold by November. The Financial Review says Gazal has received a number offers for the business. The surf brand was put up for sale in June after two unsolicited approaches. The company's adviser has not revealed which companies have been short-listed for the sale. Gazal earnings improved in 2007 over the previous year, though 2004 is still the standout.
To international markets, US markets ended on firmer ground after some positive earnings reports, capping off a week driven by the Federal Reserves first interest rate cut in four years; The Dow Jones Industrials was up 53, the S&P500 was up 7 and the Nasdaq composite was up 17 points.
European shares were all stronger; London's FTSE was up 28 points; Paris added 12, and Frankfurt gained 59.
Asian stocks were mixed; Hong Kong's Hang Sang advanced 143 points; Tokyo's Nikkei fell 101, and China's SSE Composite closed 15 points weaker.
Back to the US, gold lost $1.00 to $738.90 US an ounce for the spot contract on Comex, Silver added 15 cents to $13.62, copper was steady at $3.59.
And finally, oil slipped 16 cent to finish at $81.62 for November light crude in New York.
Source: Finance News Network © 2007
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