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Australian stocks follow Wall Street to record high

Australian stocks follow Wall Street to record high

Fresh record highs on Wall Street pushed the Australian share market up for the third day running Thursday, with dealers saying they expect the market to hold its gains in the next few weeks and 2007 to be another good year for the Australian market.
The benchmark S&P/ASX 200 index rose 0.3 percent to close at 5,660.5.
Wall Street rose 0.8 percent on stronger-than-expected home sales data and a fall in oil prices.
Dealers said the Australian market was also supported by month/quarter-end buying from local funds. "I think it's (month/quarter-end buying) already happening," said Southern Cross Equities Director Charlie Aitken.
The Australian index is up nearly 19 percent for the year.
AMP Chief Economist Shane Oliver forecasts a rise to 6,100.0 in 2007 based on expected double-digit earnings for Australian companies and his view that the current merger and acquisition cycle has a lot further to run.
Oliver sees fair value for the S&P/ASX 200 at 6,000.0.
Resources made the biggest positive contribution to strength in the market, with BHP Billiton rising 1.0 percent to A$25.28 and Rio Tinto up 1.6 percent at A$74.34.
Paladin Resources soared to a record high of A$8.90, up 7.8 percent, after reporting that construction and commissioning of its Langer Heinrich mine was well advanced and producing Paladin's first uranium oxide concentrate, or yellowcake.


Updated : 2021-08-01 02:57 GMT+08:00