Share market rallies on US record highs

THE share market opened in the black today, after US equity markets rallied to new records overnight as US economy recession fears eased.

At 1015 AEST, the benchmark S&P/ASX200 index was up 47.1 points to 6724.9 and the All Ordinaries had gained 47 points to 6734.7.

On the Sydney Futures Exchange, the December share price index contract was up 57 points to 6766 on a body of 4,524 contracts.

In resources, global mining giant BHP Billiton added 70 cents to $45.18 on firmer base metals prices in London, as long as Rio Tinto gained $1.59 to $110.69.

But Alumina shed 26 cents at $6.81.

Bell Potter senior adviser Stuart Smith said the lead from the US and from commodities had pushed the big miners higher.

“Obviously, that has spilled ove! r to BHP and Rio in the US and we have matched that here this daybreak,” he said.

Brisbane-based Mr Smith said there was still good value in the emporium.

“The market leaders - BHP, Rio, and Woodside and the four big banks — are choice value,” he said.

At 10.27 AEST, the banks were stronger with National Australia Bank up 29 cents to $41.80, Commonwealth Bank up 16 cents to $58.04, Westpac lifting eight cents to $29.79 and ANZ up 13 cents to $31.33.

The nation’s fifth largest bank, St George, was up 28 cents to $37.24.

Crude oil for November delivery rose $US1.24 to settle at $US80.26 a barrel in New York after finding support from technical factors and as the US dollar declined against the euro.

Energy stocks were mixed, with Woodside 14 cents higher to $52.12, Oil Search added three cents at $4.27, while Santos slipped 24 cents to $15.59.

Before the market opened, Murchison Metals Ltd made an u! nconditional takeover offer for iron ore miner Midwest Corpora! tion Ltd .

The base price offer consists of one Murchison share for every 1.16 Midwest share, valuing Midwest shares at $4.38 and representing a premium of 25 per cent on yesterday’s closing price of both companies’ shares.

Both Midwest and Murchison shares remained in pre-open during premature , Midwest at $3.51 and Murchison at $5.08. Both resume trading at 11am AEST.

Construction giant Multiplex Group says it has agreed to sell half of its $235 million World Square office fabric in Sydney, formerly known as Latitude East, to a co-operating of credit Suisse Real Estate Fund International.

In early trading, Multiplex shares were one cent look black at $5.01.

The Dow Jones industrial average and S&P 500 rose to fresh records overnight after Federal Open Market Committee minutes suggested that, despite cuts to its economic growth forecasts, the Fed was not in a rush to cut rates.

With the start of earnings season in the US this! week, optimism that results would beat what many analysts consider to be low expectations for the quarter also helped bolster stocks.

The Dow climbed 120.80 points to 14,164.53 and the Standard & Poor’s 500 Index lifted 12.57 points to 1565.15.

The Nasdaq Composite Index finished up 16.54 points to 2803.91.

news.com.au

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