National Australia Bank Limited

Yesterday offshore markets helped lift the Australian share market to a two-month high. Investors started to return as they were increasingly confident that the market may have passed the worst situation. The benchmark S&P/ASX200 index was up 37.0 points, or 0.99 per cent, at 3,779.7, and the broader All Ordinaries index added 39.0 points, or 1.06 per cent, to 3,728.2. The weaker commodities prices and performance of US stocks may send the local market down.

Last Friday the Australian share market had a poor start at the first trading day of the New Year, as S&P/ASX 200 Index closed down 8.5 points, or 0.23 per cent, at 3713.8 points, while the All Ordinaries Index closed just 3.6 points down at 3655.7 points. Analysts warn that it is too early to get excited despite a positive lead from the US. The market might remain volatile in the coming three months as there will be some bad news ahead in the reporting season.

Yesterday the Australian stock market closed marginally higher despite a big lead from United States markets. The banking sector was pulled down by Commonwealth Bank as it tried to sell shares to institutional investors for A$2 billion capital raising. The benchmark S&P/ASX200 index had gained 14.4 points, or 0.4 per cent, to 3570.6 points, while the broader All Ordinaries index was up 16.1 points, or 0.46 per cent, at 3515.0 points. Commonwealth Bank's termination of the share placement and rising bad debts has hit the confidence of the banking sector.

Yesterday Australian shares closed lower as almost all sectors were down. The benchmark S&P/ASX200 index was down 35.2 points, or 0.98 per cent, at 3556.2, while the broader All Ordinaries index was down 36.8 points, or 1.04 per cent, at 3,498.9 points. Telecom sector continued to lose on Telstra's failure to submit an adequate tender for the national broadband network.

Yesterday the Australia market closed lower dragged by resource sector although the central bank's aggressive rate cut of 100 basis points lifted some sentiment in late trading. The benchmark S&P/ASX200 index closed down 153 points, or 4.16 per cent, at 3,528.2, while the broader All Ordinaries index was 145.6 points, or 4.02 per cent, lower at 3,473.4. Analysts anticipate a rise today in local market with positive lead from the US and the RBA rate cut.

At week's end, Wall St. rebounded with about 2.9% rise on hopes for further US rate cuts and President-elect Barack Obama's call for another economic stimulus plan. China's announcement over the weekend that it will spend 4 trillion yuan by 2010 to help re-ignite growth may also shore up Australian stocks, particularly miners.

Overnight US stocks slumped more than 5% as investors worried about the global financial crisis and a US recession, wiping out the gains from the Election Day rally as the problems facing US President-elect Barack Obama dimmed optimism on Wall Street.

Overnight Wall Street slumped in late trading with Dow Jones Industrial Average ended the day down 2.5%. Australia's benchmark S&P/ASX-200 share index yesterday advanced almost 4% for a second straight session, bringing the two-day increase to more than 8%, as buyers flooded back into big mining companies.

Overnight US stocks rallied and commodity gained after the Federal Reserve's chairman backed more government spending to help the economy and credit market conditions showed further signs of improvement.

Wall Street closed weaker on Friday with fluctuations that has become a standard in recent weeks and further turmoil overseas is likely to prompt fresh slides for Australia markets. Last Friday the Australia benchmark S&P/ASX 200 index lost 42.6 points, or 1.1%, to 3970.8, after rising as much as 3.4% in the morning. The broader All Ordinaries lost 43.3 points, or 1.1% to 3944.8.