Sydney, Sept 28, 2007 (ABN Newswire) -
Australian shares rose 0.5 per cent to a second straight record high, as resource stocks such as BHP Billiton and Woodside Petroleum were boosted from stronger metal and oil prices.
At Midday the S&P/ASX200 index is up 47 points to 6,586 and on the futures market the SPI-200's up 61.
In company news this hour, Toro Energy says it's received acceptance for its offer for Nova Energy from the target's major shareholder, Oxiana-owned Agincourt Resources. Together with acceptances from other Nova shareholders, Toro's relevant interest in Nova is now at 60.24 per cent. Toro is offering 5 and a half of its own shares in exchange for every Nova share and is encouraging its investors to accept the offer by October 12. Toro's bid for Nova is conditional upon receiving 90 per cent share acceptance. The merger will create a significant ASX listed uranium explorer, with a management team aiming to advance the company through project development and emerging production. Shares in Toro are up 4.94 per cent to $0.85.
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http://abnnewswire.net/lnk/819RHJULFranchisor Retail Food Group expects to boost earnings per share this year by 50 per cent after buying the Michel's Pattisserie chain and Brumby's Bakeries. The company also announced its due diligence enquiries have been satisfactorily completed. Retail Food Group says while it's still reviewing the funding structure for the Michel's Food Group acquisition, it expects earnings per share to increase for fiscal 2008. The group's chief executive Tony Alford says not only will shareholders benefit, stakeholders will, too. Shares in Retail Food Group are up 9.47 per cent to $1.85.
And now to warrants with Macquarie Bank. Aussie stocks have jumped to another record high in trade, as BHP Billiton leaps to another life-time record, with Woodside also a strong contributor on crude prices and news of an asset sale.
Lihir Gold shares have jumped another three percent in trade today as investors continue to re-rate the stock on expectations of firmer gold prices. Traders that envisage further upside bought leveraged exposure in the unhedged gold producer through LGLWMI Nov07 $3.25 Call.
Traders unsure about the direction of stocks have again looked to index warrants for trading exposure, with large volumes seen in XJOVMR Oct07 6600 Put in anticipation of a pull-back.
Turning now to market indices. At Midday, the index posting the biggest gain by percentage points is the Materials, which is up 281 points to 15,533. Shares in BHP Billiton are up 2.83 percent to $44.75. Shares in Incitec Pivot and Rio Tinto are also higher.
The worse performing index by percentage points in the Teleco, which is down two points to 1,549. Shares in Reverse Corp are down 3.04 percent to $4.46. Shares in Singapore telecom and Telstra are also lower.
In Tokyo, the Nikkei is up nine and in New Zealand the NZSX-50 is down five.
Gold is currently trading at $738.50 US an ounce and one Australian dollar's buying 88.12 U.S cents.
Source: Finance News Network © 2007
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