MARKET TALK: S&P/ASX 200 Up 0.5%; Miners Jump On Rudd Dump

24th Jun 2010 01:49

0049 GMT [Dow Jones] S&P/ASX 200 up 0.5% at 4509.8, hits 4516.7 as resources jump after Federal Government replaces Kevin Rudd with Julia Gillard as Prime Minister, damping perceived regulatory and sovereign risk in Australia. BHP (BHP.AU) up 2.0%, Rio (RIO.AU) up 2.4%, Fortescue (FMG.AU) up 3.6%, OZ Minerals (OZL.AU) up 3.4%, MacArthur Coal (MCC.AU) up 5.0%. Resources services stocks also benefiting, with Leighton (LEI.AU) up 1.6%, Downer (DOW.AU) up 2.3%, UGL (UGL.AU) up 2.0%, Boart Longyear (BLY.AU) up 2.0%. Boral (BLD.AU) another winner, in materials sector, up 2.0%. In energy sector, Santos (STO.AU) up 2.0% despite 1.0% fall in U.S. peers. Major banks also rising, with ANZ (ANZ.AU) up 0.7%, although Macquarie Group (MQG.AU) down 3.1% after saying market conditions were increasingly uncertain and adversely impacting some activity levels. But other sectors mostly flat, in line with U.S. peers, after disappointing new home sales data and slightly less upbeat FOMC statement. "As you would expect after Rudd's departure, resources stocks are outperforming," says Patersons Senior Private Client Adviser Chris Blair. "Obviously it's giving people some hope that the resources super profits tax will be altered." Expects S&P/ASX 200 to hold 0.5% gain today, with 4490-4500 chart support level more or less intact. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 23, 2010 20:49 ET (00:49 GMT)