Receiving some positive leads from overseas markets, the Australian share market is likely to open stronger this morning, resource stocks to get a lift from higher oil and metals prices.
Wall St gained overnight, the Dow Jones rising to its highest level in a year and half after a report showing an increase in consumer spending added to growing optimism for the strength of the US economic recovery.
In economic news out of the US, the Commerce Department reports that personal spending rose 0.3% in February after a 0.4% increase in January, in line with forecasts.
To the figures now and the Dow Jones Industrial Average rose 46 points to 10,896 on Monday. The S&P500 Index added 7 at 1,173 and the NASDAQ is 9 points higher at 2,404.
European stock markets closed higher on Monday, after Greece said it was moving forward with plans to issue a new seven-year bond. London’s FTSE up 8 points, Paris gained 12 points and Frankfurt was 37 points stronger.
Asian stocks closed mixed on Monday, Hong Kong’s Hang Seng is up 184 points, Tokyo’s Nikkei dropped 10 points and China’s Shanghai Composite added 64 points.
The Australian share market closed flat on Monday. The S&P/ASX 200 Index closing at 4,897 and on the futures market the SPI200’s up 16 points. On to currencies: the Aussie Dollar at 8:35AM was buying 91.75 US cents, 61.26 Pence Sterling, 84.91 Yen and 68.1 Euro cents.
To company news around this morning: Shares in mining giant BHP Billiton Ltd (ASX:BHP) rose 0.23% to $43.38 yesterday. Reports of possible oil and gas in a well offshore from the Falkland Islands has boosted BHP’s optimism of encountering similar results with its own drilling program in the region. According to The Age newspaper UK based Desire Petroleum says it may have encountered oil and gas at its Liz permit after confirming the presence of hydrocarbons. This boosts the regions prospectivity and in turn provides BHP with some early encouragement for its endeavours in the area. In other news BHP has restarted operations at its 60,000 tonne a year Kwinana refinery in WA after shutting down due to problems finding hydrogen gas on March 18. BHP earned $7.2 billion in fiscal 09.
Shares in manganese miner OM Holdings Ltd (ASX:OMH) gained 0.86% to $1.76 yesterday. The company is reportedly considering reviving plans to list on the Hong Kong Stock Exchange in an effort to raise money for further growth. The Australian Financial Review reports that the company also remains interested in a stake in the Tshipi manganese project in South Africa, held by Pallinghurst Resources. Pallinghurst sold its 49.9% stake in the project to Jupiter Mines after an MOU with OM fell through. Yesterday OM Holdings completed a deal to acquire a 26% stake in a South African black economic empowerment group who holds the remaining 50.1% of the project. OM Holdings profit for 2009 came to $26.93 million.
Turning to ex-dividend’s, and Cromwell is going ex-dividend today with a 2 cent unfranked dividend and Mesbon China Nylon is also going ex-dividend with a 0.5 cent unfranked dividend.
To commodities: Gold rose $6.10 to US$1,110.30 an ounce for the May contract on Comex. Silver gained almost 48 cents to US$17.37 and copper rose 13 cents to US$3.53.
And oil added $2.17 to US$82.17 a barrel for May light crude in New York.
