Sydney, Oct 2, 2007 (ABN Newswire) -
The share market rose to a fresh record high this morning as financial stocks gained. The miners also rose on the back of firmer base metal prices.
At Midday the S&P/ASX200 index has risen 81 points to 6,645.
In economic news, growth in Australia's manufacturing sector eased in September. The Australian Industry Group/PriceWaterhouseCoopers Performance of Manufacturing Index dropped 1.7 points to 50.7. That's just above the 50 threshold that separates growth from contraction in the sector. Australian Industry Group chief executive Heather Ridout described it as an ordinary performance, made even more ordinary by the softness in new orders and exports.
The full report is available at the following video and audio links.
Video Link
http://abnnewswire.net/fnnlnk/P678ZRB6Audio Link
http://abnnewswire.net/lnk/8T3299DHIn company news this hour, the Mirvac Group says it has plans to buy a portfolio of industrial landmarks in Queensland from the Doyle Group. The $255 million portfolio consists of five industrial sites covering 565 hectares. Mirvac's national industrial director, Stuart Penklis, says the acquisitions will provide Mirvac with a significant pipeline of quality institutional-grade product. The group says the sites will be acquired progressively over the next two years. Mivac Group shares are 0.74% higher at $5.45.
And Sundance Energy Australia has sold minority interested in two US oil and gas prospects. According to a statement from the company, the $52 million deal will leave the company debt free and cashed-up for ongoing developments and expansion. Sundance managing director Jayme McCoy says the deal places the firm in a strong position to successfully exploit the balance of its portfolio. Sundance Energy shares are 18.92% higher at 66 cents.
Now let's have a look at warrants from Macquarie Bank, the biggest contributor to today's record-breaking market performance has been mining giant BHP Billition, with its stock up almost three percent. Traders that envisage further upside bought leveraged exposure in the stock through BHPIMU Oct07 $37.00 Instalment, and BHPIMX Jan08 $42.00 Deferred Instalment, whilst others have been active in intraday twisting through BHPWMN Oct07 $41.00 Call.
Rio Tinto is also up strongly on the back of firmer metal prices, prompting warrant traders that bought on the open to close out positions for a profit through RIOIMU Dec07 $100.00 Deferred Instalment.
Turning now to market indices, all the major indices were up this morning. The index posting the biggest gain by percentage points is the Materials index, up 289 points at 15,747. Shares in Rio Tinto are up 2.88% to $111.97, while BHP Billiton and Fortescue Metals are also higher.
The index with the smallest gain by percentage points is the Energy index, up 12 points to 15,765. Paladin Resources shares are down 3.17% to $7.33. Energy Resources and Worley Parsons shares have also lost ground.
And now let's take a look at regional markets. In Tokyo, the Nikkei is up 149 points and in New Zealand the NZSX50 is up 33.
Gold is currently trading at $744.50 U.S an ounce and one Australian dollar's buying 89.09 U.S cents.
Source: Finance News Network © 2007
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