SYDNEY (AFX) - Share prices are expected to trade higher on firmer commodity prices and renewed confidence about earnings prospects following generally positive profit reports for the December half, dealers said.
They said the market remains in reach of new record highs although valuations are being tested as much of the earnings growth is already priced into the market.
Australia's largest supermarket group, Woolworths, confirmed the profitability of blue chip companies by reporting a 22 pct jump in first half earnings to 543.0 mln aud and saying it expects full year earnings to outstrip sales.
Building products group James Hardie added to the picture of solid earnings as it benefited from a robust US market.
The group reported third quarter earnings rose 28 pct to 144.2 mln usd.
The S&P/ASX 200 March futures contract ended its last session up 14.0 points at 4,908.0.
On Friday, the S&P/ASX 200 fell 19.8 points or 0.40 pct to close at 4,893.4, retreating from the record high of 4,956.7 set on Feb 1.
But over the trading week the key index rose 93.5 points or 1.95 pct.
The All Ordinaries Index lost 17.9 points to close at 4,849.4, also falling from the all-time high of 4,903.9 set on Feb 1.
In New York, on Friday, share prices closed mixed after investors were torn between worries about weaker than expected durable-goods orders and an attempted attack on a Saudi oil refinery on the one hand and a desire to take advantage of investment opportunities on the other hand.
At the end of the session the Dow Jones Industrial Average closed down 7.37 points at 11,061.85.
News Corp ended down 0.29 pct and National Australia Bank ADRs climbed 0.40 pct.
In London, BHP Billiton eased 0.91 pct and Rio Tinto dropped 1.49 pct.
Crude oil prices lifted by 3.9 pct on Friday in reaction to the attack on the Abqaiq oil facility in Saudi Arabia. The April Nymex contract rose by 2.37 usd to 62.91 usd a barrel.
Base metal prices were mostly higher in London trade on Friday, the exception being copper. Zinc rose by 3.6 pct after a number of global investment banks tipped the metal for solid gains in 2006.
Gold prices soared on Friday in reaction to the attack on a Saudi oil installation. The Comex April gold quote rose by 10.30 usd to 561.20 usd an ounce.
(1 usd = 135 aud)
bruce.hextall@xfn.com
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