Australian market set to open higher

THE Australian market has opened slightly higher despite falls in resources stocks.

IG market strategist Stan Shamu said commodity prices continued to fall overnight and he expected resources stocks to drop during the day, especially gold.

"Commodities remained under pressure overnight with notable weakness in gold," he said.

"We expect gold names to struggle today, led by Newcrest Mining which is headed for its lowest level since June 2006 of $15.64."

Newcrest shares opened 81 cents, or 5.11 per cent, lower at $15.05.

The mining giants all dropped on opening.

BHP Billiton lost 11 cents to $33.92, Rio Tinto dived 53 cents to $55.24 and Fortescue tumbled six cents to $3.53.

The four major banks all opened in positive territory.

Commonwealth Bank surged 79 cents to $73.44, National Australia Bank jumped 14 cents to $33.21, ANZ added eight cents to $30.06 and Westpac gained five cents to $31.72.

Graincorp shares fell 0.5 cents to $12.745 after it announced its first half profit had fallen by 34 per cent due to costs from its purchase of several food companies.

Australia's largest grain handler is also currently working with food giant Archer Daniels Midland to complete a $3 billion takeover.

In economic news on Thursday, the Australian Bureau of Statistics is due to release March international merchandise imports data.

KEY FACTS

* At 1016 AEST on Thursday, the benchmark S&P/ASX200 index was up 14.3 points, or 0.28 per cent, at 5,206, while the broader All Ordinaries index was up 13.5 points, or 0.26 per cent, at 5,186.8.

On the ASX 24, the June share price index futures contract was up eight points at 5,209, with 9,973 contracts traded.

* National turnover was 226.93 million securities worth $774.71 million.

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