Sydney, Oct 18, 2007 (ABN Newswire) -
Australian shares have risen in morning trade recovering from four straight sessions of losses with recent underperformers such as National Australia Bank and other major banks gaining. However the rebound is on low volumes suggesting the mood is still cautious on lingering concerns about tightening credit and the health of the US economy.
At Midday the S&P/ASX200 index is up 62 to 6,742 and on the futures market the SPI-200's up 70.
In economic news, Housing affordability in Australia dropped to record lows in September as a rise in interest rates and surging house prices left many first-time buyers out in the cold. The Commonwealth Bank and Housing Industry Association's index of housing affordability fell by 2.1 percent in the three months to end-September to stand at 94.9, its lowest since the series began in 1984.
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http://abnnewswire.net/lnk/A81AGBH6In company news this hour, Woodside Petroleum announced its third quarter production has fallen 8 percent from a year ago. However, quarterly output of 17.6 million barrels of oil equivalent was up 4 percent on the second quarter. Sales revenue for the Perth- based resources firm came in at $964 million, around 16 percent down on a year ago. Woodside also cut its 2007 production forecast to between 70-71 million boe from 72-78 million boe after the sale of its Legendre oilfields off Western Australia. Woodside has several projects set to come on-stream in the fourth quarter including the Neptune project off the Gulf of Mexico. Shares in the resources giant dipped 1.51% lower to $53.36.
Weak U.S. housing data added to concerns about a worsening housing slump. Building materials firm James Hardie Industries makes around 80% of its income from the states and data showed that U.S. housing starts and building permit activity, a sign of future home construction plans, both fell to their lowest in more than 14 years last month.
Shares in James Hardie Industries have slipped 1.13% to $7.01.
Travel firms seem to be engaging in more tennis than flying at the moment with Qantas admitting it has had discussions with parties including Jetset about its holiday services division sending shares in Jetset over 4 percent higher despite Jetset's refusal to comment.
Turning now to market indices, the Staples index is picking up gains, up 123 points to 8,675. Woolworths has added 2.01% to $32.46 after the ACCC frowned on the food retailer buying any Coles assets. Coca-cola Amatil and Fosters Group are also trading firmer.
The Energy index is losing ground, 14 points lower to 16,162. Woodside Petroleum is the major drag, declining 1.51% to $53.36. Tap Oil and Straits Resources are also tracking weaker.
In Tokyo, the Nikkei is up 121 and in New Zealand the NZSX-50 is down 13.
Gold is currently trading at $760.40 US an ounce and one Australian dollar's buying 89.3 U.S cents.
Source: Finance News Network © 2007
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