SYDNEY (Thomson Financial) - Australian shares were higher in early trade on
Monday as investors took encouragement from growing optimism that the U.S. will
move into a recovery mode later in the year.
"It's been a reasonable start to the week thanks to gains on Wall Street on
Friday but volumes are low," said Michael Heffernan, a private client advisor at
Sydney stockbroking firm Reynolds & Co.
At 11:15 a.m. (0115 GMT), the S&P/ASX 200 was up 30.5 points or 0.5 percent
at 5,730.7 while the All Ordinaries index had gained 34.3 points or 0.6 percent
to 5,794.7.
Heffernan said resources stocks were supporting the market following a
recovery in commodity prices on Friday after the U.S. non-farm payrolls report
for April showed far less jobs were lost during the month than had been
expected.
Index leader BHP Billiton was up 2.7 percent at A$44.69 while Rio Tinto had
advanced 1.7 percent to A$140.65. Fortescue Metals, which has begun shipping
iron ore from its new mines in Western Australia's Pilbara region, gained 1.7
percent to A$8.35.
Coal miner Macarthur had fallen 1.5 percent to A$17.49 after telling
shareholders there can be no certainty that talks with an unnamed third party
would lead to a takeover offer.
Oil and gas sector leader Woodside Petroleum was up 2.2 percent at A$58.26.
Origin Energy, which last week received a A$12.9 billion takeover offer from
British energy giant BG Group pitched at A$14.70 a share, was up 0.5 percent at
A$14.00.
The bid represented a 40 percent premium to Origin's trading price before
the bid was revealed and is considered by analysts to be a "knockout offer" even
though it still has to clear regulatory hurdles.
Fertilizer group Incitec Pivot was up 2.4 percent at A$175.65 after
reporting a hefty rise in first-half earnings, which was accompanied by a
strengthened interim dividend.
Banks were mixed with National Australia Bank up 0.3 percent at A$31.63
ahead of its first-half earnings result on Friday, which is expected to show a
lift in earnings of about 10 percent from the previous first half though
provisions for bad debts are expected to rise in line with other major banks.
($1 = A$1.07)
bruce.hextall@thomsonreuters.com
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bhx/ng
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