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InvestorTV's Market Bite, May 14, 2008
 
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The Australian share market opened higher today, boosted by resource stocks, as base metal prices rose on the London Metals Exchange overnight.
Both major Australian indices continued to rise through morning trade and at midday, the S&P/ASX200 index was up 40 points, while the All Ordinaries added 38.

On Wall Street, financial stocks fell on Tuesday as the Federal Reserve warned that it was still facing strong demand for borrowing from financial institutions. However tech shares rose on the back of a jump in Yahoo, as speculation mounted as to why billionaire investor Carl Icahn is reportedly loading up on the company’s shares.

At close of trade, the Dow Jones Industrial Average was down 44 points, while the tech-heavy Nasdaq added six.

In Asian trading today, Japan’s Nikkei was down by just two points at midday, while Hong Kong’s Hang Seng slipped 86.

Meanwhile in ASX news today, Australian conglomerate CSR reported a 35 per cent drop in full year net profit to $177 million. The group, which is Australia’s top sugar producer, blamed the drop on lower sugar prices, a continued slump in the eastern Australian housing market and higher interest rates. However the result still came in ahead of analysts’ expectations.

CSR, which also manufactures glass, aluminium and building products as well as developing property, said the group expected higher earnings from its building products and sugar units next financial year. However it warned that earnings from property development might slip. Shares in the group were flat at noon today.

In other news, ASX-listed phone group Singapore Telecommunications, today beat market forecasts with a nine per cent rise in quarterly profit, thanks to a rapid rise in mobile phone use in Asia.

SingTel which is southeast Asia’s largest phone company, and parent of Australia’s Optus, said underlying net profit for the March quarter came in at $968 million, up from $886 million a year ago. However the group warned of an uncertain outlook for next year amid what it termed “a challenging global environment”, despite SingTel’s fundamentals remaining strong.

Finally, in individual share price movements on the ASX earlier today resource stocks were mixed. BHP Billiton was up $2.02 at midday, Fortescue Metals fell ten cents, Rio Tinto surged $5.05, while Woodside Petroleum slipped five cents.

Banking stocks were the main drag on the market this morning. At noon ANZ was down 29 cents, Commonwealth Bank fell nine, National Australia Bank shed 71 cents, while Westpac lost 36.

Other blue chips were mixed. At noon, AMP was down 17 cents, News Corp added 48, Telstra gained nine cents, while retailer Woolworths added seven.

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Source: Investor TV
Release Date: Wednesday, 14 May 2008 1:27 PM
Author: Fiona Collins, InvestorTV
Runtime: 3 minutes 5 seconds

Comments: 0 | Post Comments
Rating: Not Rated
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