SYDNEY (XFN-ASIA) - Share prices are expected to open higher with the key market indices in reach of fresh all-time highs as investors react to positive offshore leads including a slightly firmer finish on Wall Street on Friday and higher commodity prices, dealers said.
They said local factors are also driving the market higher including robust earnings reports for the first half to December which have been accompanied by higher dividends and share buybacks.
Banking and insurance group Suncorp-Metway is due to report its half-year earnings today ahead of its merger with insurance group Promina which just released its full-year results.
Dealers said gains today may be limited with investors likely to sit on the sidelines awaiting offshore markets to reopen, including Wall Street which will be closed Monday for the Presidents' Day holiday.
The S&P/ASX 200 March futures contract ended its last session up 11.0 points at 5,935.0, suggesting a positive start to trading.
On Friday, the S&P/ASX 200 ended down 39.1 points or 0.65 pct at 5,953.7. The broader All Ordinaries index lost 33.6 points to close at 5,935.5.
In New York, a larger-than-expected drop in housing starts saw a mixed performance on Wall Street. The Dow Jones Industrial Average ended up 2.56 points at 12,767.57, marking its third straight record close last week.
News Corp rose 0.04 pct while National Australia Bank's American Depositary Receipts fell 1.37 pct.
In London, the FTSE 100 ended down 13.8 points at 6,419.5. BHP Billiton fell 0.50 pct and Rio Tinto dropped 1.24 pct.
Oil prices rose sharply on Friday after the US warned of fresh attacks by militants in Nigeria, the world's eighth largest oil exporter. The March crude contract rose 1.40 usd to settle at 59.39 usd a barrel on the New York Mercantile Exchange.
Base metal prices were mixed on the London Metal Exchange on Friday.
Lead rose 1.3 pct but other metals were generally weaker as traders elected to take profits ahead of a holiday weekend in the US and the Lunar New Year holiday in China.
Gold prices posted modest gains, assisted by a weaker US dollar and rise in the price of oil.
The most active April Comex gold contract jumped 1.40 usd to 672.80 usd an ounce but was below the six-month high of 676.60 usd set last Wednesday.
(1 usd = 1.27 aud)
bruce.hextall@xfn.com
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