Banks, News Corp lead the way higher

The ASX 200 rose 5.5 points to 3041.30 and the All Ordinaries picked up 5.5 to 3004.90 as good news and positive market sentiment drove the indices higher.

Qantas's strategic alliance with Air New Zealand dominated the sharemarket. The Flying Kangaroo said it would take a 22.5 per cent stake in Air New Zealand, costing the airline about $500 million.

Shares in Qantas rose 1c to $3.94 amid fears the deal could have problems getting past the competition watchdog.

``It is a good deal but the market won't price it in until it gets the ACCC approval," a dealer said. ``The market doesn't give people the benefit of the doubt until the deal is done."

Patrick, which holds a stake in Virgin Blue, fell 30c to $12.70 on concerns a Qantas-Air New Zealand alliance would preclude Virgin from starting services to and from New Zealand.

Brambles, which has been hard hit since its shock warning that its CHEP pallet business in Europe had substantially deteriorated, rose 17c to $4.35 ahead of its annual meeting last night on bargain hunting.

``If I was going to bet which direction it will go post-AGM, I would say up," a dealer said.

Another dealer said last night's meeting would have little impact on the share price.

``The AGM couldn't be any worse than last week ... It's all in the price," the dealer said.

Stocks with drought exposure continued to suffer as Toll Holdings fell 30c to $6.07. There were also concerns Toll was expensive relative to the rest of the market.

Syringe maker Unitract rose 12c to 88c after the company signed a consultant to market its retractable syringe in the US. Rival Occupational & Medical Innovations rose 39c to $4.59 after the company told shareholders at its AGM that it was ``confidently moving forward".

AGL fell 15c to $10.15 on fears of a price war between the company and Texas Utilities in Victoria.

Ainsworth Game Technology fell 3c to 78c after the company warned it would incur a $5 million loss in the first half of 2003, at the same time it announced plans to buy Victorian Gaming Systems for $3.3 million.

QBE forecast a $300 million increase in its 2003 premium income but its share price still fell 4c to $7.87.

Among the banks, NAB rose 60c to $33.45 with dealers suggesting the rise might have been a result of its share buyback program. St George Bank fell 30c to $18.50 and Macquarie Bank fell 85c to $22.20 after both banks went ex dividend.

ANZ rose 23c to $18.70, CBA rose 13c to $27.97 and Westpac fell 8c to $13.88.

MONEY
$A/US?          56.25           +0.09
TWI             52.4            +0.1
90-day bank bills       4.860           +0.030
3-year bonds    5.015           +0.060
10-year bonds   5.685           +0.080

YESTERDAY'S MOVES
Rises 500       Falls 518       Steady 314
Dec SPI                 3047.0          +3.0
ASX 200                 3041.3          +5.5
Biz.com Tech    734.3           +6.0
Industrials     3285.3          -22.0
Energy          4035.1          -0.1
Volume Value    550.6m          1.924bn

WINNERS
SFE Corp                +9.55%
Kaz Group               +4.65
Solution 6              +4.11
Brambles                +4.07
Timbercorp              +3.85
Novogen                         +3.50
Sigma                   +2.96
SMS Mngmnt              +2.86
MIM                     +2.76
Gunns                   +2.75

LOSERS
Amalg Hldgs             -8.63%
Peptech                         -7.14
Toll Hldgs              -4.71
Henry Walker Eltin      -4.44
Energy Dvlpmnt          -3.80
Novus Petroleum                 -3.77
Macquarie Bank          -3.69
Metcash Trading                 -3.35
MIA Group               -3.33
Grand Hotel             -3.33