The Australian share market is likely to open stronger this morning following a rally on Wall St overnight on a better than expected housing report which fuelled optimism for the economic recovery. A rise in commodities is likely to boost resource stocks today and help to support the market.
Australian stocks closed higher on Monday. The S&P/ASX 200 Index closed 31 points higher at 4,717. Looking at the futures market the SPI200’s up 33 points.
At 8:45AM the Aussie Dollar is buying 92.43 US cents, 82.27 Yen, 61. 77 Euro cents and 55.66 Pence Sterling.
In economics news out today: The AMP NATSEM Income and Wealth Report is to be released.
In company news about this morning: Shares in retailer Harvey Norman Holdings Ltd (ASX:HVN) rose 5.19 per cent to $4.46 yesterday. The company says sales from the franchised Harvey Norman stores rose 7.7% to $1.93 billion for the period from July 1 2009 to November 22 2009 compared to the same period last year. Like for like sales, stores open more than a year, rose 5.9% compared to the same period last year. Harvey Norman says unaudited preliminary accounts for the period from July 1 to October 30 and current trends in the economy, indicate that profit before tax and minority interests for the six months to December 31 2009 should exceed the same period last year by at least 40%. Harvey Norman’s 2009 net profit was $214.3 million a drop from the year before.
Shares in top airline Qantas Airways Ltd (ASX:QAN) gained 1.12 per cent to $2.72 yesterday. The airline revealed in an investor presentation that it plans to spend $1.7 billion in fiscal 2010 and $2.7 billion in fiscal 2011 to purchase new aircraft and fund a program to improve its margins. The airline is to purchase 43 aircraft with funding for aircraft purchases in place until October 2010. Qantas announced earlier in the year that it is aiming to cut costs by $1.5 billion over the next three years. Qantas’ 2009 net profit was significantly below its high in 2008 of close to $1 billion.
Checking ex-dividends, and going today we have SP AusNet with a 4 cent 32.23% franked dividend, and Sirtex Medical with a 7 cent fully franked dividend.
Turning now to overseas markets. US Stocks closed higher on Monday - The Dow Jones Industrial Average gained 133 points. The S&P500 Index is up 15 and the NASDAQ rose 30 points.
European markets were also stronger. London’s FTSE is up 104 points, Paris added 84 points and Frankfurt rose 138.
Asian markets were higher: Hong Kong’s Hang Seng is up 316 points. Tokyo’s Nikkei was closed and the Shanghai Composite advanced 30 points.
Looking at metals: Gold advanced $18 to US$1,164.80 an ounce for the December contract on Comex, gold touched a record high of US$1,174 an ounce at one point as the US dollar weakened boosting bullions appeal. Silver added 15 cents to US$18.59 and for the March contract, copper is up 3 cents at US$3.16.
And the price of oil is up 9 cents to US$77.56 a barrel for January light crude in New York.
