ASX may start week on firmer note
ASX may start week on firmer note

UPDATE 8.15am: The Australian sharemarket has opened higher as investors correct a late sell off before the weekend.

At 8.10am, the benchmark S&P/ASX200 index was up 19.6 points, or 0.44 per cent, at 4492 points, while the broader All Ordinaries index had risen 18.5 points, or 0.41 per cent, to 4514.8 points.

On the ASX 24, the December share price index futures contract was 17 points higher at 4482 points, with 7686 contracts traded.

IG Markets private client adviser Stan Shamu said the Australian market had opened higher as investors corrected a late sell off on Friday.

“There was a sharp sell off on Friday going into the close that was a bit unwarranted as Australian investors exercised a bit of caution ahead of the weekend,” he said.

Mr Shamu said the mining and energy sectors were posting the highest gains but trading could be volatile throughout the day as Hurricane Sandy threatened the US north east.

BHP Billiton was eights cents higher at open to $33.94, Fortescue gained six cents to $4.11 and Rio Tinto added 70 cents to $57.15.

Macquarie Bank was down 25 cents, or 0.81 per cent, to $30.60.

However, the four major banks all opened slightly higher.

ANZ was three cents up at $25.26, National Australia Bank was nine cents higher at $25.99, Westpac was 18 cents up at $25.37 and Commonwealth Bank gained 19 cents to $57.04.

US stocks finished flat on Friday under the shadow of earnings disappointments but tempered by a slightly better-than-expected estimate of economic growth in the third quarter.

European stocks rebounded on figures showing a pick up in the US growth rate, after having taken a hit on the Spanish unemployment rate breaching 25 per cent for the first time.

In equities news, Bendigo and Adelaide Bank is due to hold its annual general meeting and Panaust to post its third quarter report.

National turnover was 205 million securities worth $300 million, with 368 stocks up, 206 down and 267 unchanged.

The West Australian

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