Spin-off brings AMP buyers back

FINANCIAL services giant AMP finally seems to have shaken off its year-long blues and continued Friday's climb. Investors have decided to give chief executive Andrew Mohl the benefit of the doubt over claims that the company will be debt-free in a few years.

The shares climbed 3.5% to a five-month high of A$7.16 after AMP won agreement in-principle on Friday to hive off its British unit. AMP also needs to raise funds through a rights issue, but investors are relieved that the spin-off is going ahead.

Australia's All Ordinaries edged up 16.8 points to 3283.0, led by gains in media giant News Corp, the exchange's dominant counter.

Another exchange benchmark, the S&P/ASX 200, added 10.3 points in the first 15 minutes of trade to 3270.5, just 7% below a record high of 3506.1 seen in February last year.

News Corp, which accounts for about 6.5% of the market's capitalisation, rose 1.9% to A$12.41. Shareholders meet on Wednesday in Adelaide for their annual meeting.

The country's largest furniture chain, Harvey Norman Holdings, said first-quarter like-forlike sales increased

14.9% on the same period last year. Total sales for the three months to 30 September climbed 22.1% to A$867.46m (£360m). The shares rose 3.1% to A$3.32. As in Britain, Australia's booming housing market has created a bonanza for retailers as consumers are enticed into larger credit card commitments.

Major banks were firmer ahead of their annual results, but National Australia Bank, the country's biggest, fell 0.13% to A$30.96.

In Hong Kong, stocks opened flat with investors locking in gains, had an early bounce and then fell. Not that the market lacked support and most traders predict a decline will be limited. There are signs that the economic skies in Asia and the US may be brightening. The Hang Seng slipped 1.08 points to 11,934.75.

Exporter Li & Fung rose on hopes that the US economy would pick up, gaining 0.76% to HK$13.20.

Hong Kong's dominant broadcaster, Television Broadcasts, was the best-performing blue-chip, rising 1.9% to HK$37.60 on hopes of increased advertising sales.

Property stocks fell on profit-taking, but there are hopes that government plans to help the sector, to be announced later this week, will provide a boost. Sun Hung Kai Properties was flat at HK$65.

Singapore was mixed with the Straits Times index down 1.73 points at 1744.31. It can be forgiven the pause, being up about 7% so far this month. Blue-chips were the shakiest. The United Overseas Bank slipped 1.4% to S$13.90.

Singapore Telecommunications fell 1.8% to S$1.82, but Singapore Press Holdings, the country's dominant, government-backed media group retraced some of the ground lost on Friday.

The shares climbed 0.5% to S$19.90 after the company, which publishes the 158-year-old Straits Times, posted a 23% rise in net profit to S$379m (£132.2m) for the year to 31 August.

Japanese stock markets were closed for Sports Day, a national holiday, and will reopen on Tuesday. The Nikkei 225 gained 2.4% or 254.60 points to 10,786.04 on Friday.