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Australia's share market jumps after Gillard wins ballot

06-24-2010 16:18 BJT

CANBERRA, June 24 (Xinhua) -- Australia's share market on Thursday has firmed after the release of news that Julia Gillard became Australia's new Prime Minister.

The Australian Securities Exchange (ASX) was up 29.52 points at 11.12 am (AEST), about 90 minutes after Kevin Rudd stood down to make way for Gillard.

The benchmark S&P/ASX200 index was up 30 points led by resource company shares.

"There has been a positive response on the share market," Westpac senior economist Anthony Thompson told the Australian Associated Press in Canberra.

The gains were led by resources with the market assuming that newly elected Prime Minister Julia Gillard will take a softer approach on the resources tax.

In the early trade, shares in Fortescue Metals Group were up 4. 06 percent, Rio Tinto had risen 2.5 percent, and BHP Billiton had gained 2.04 percent.

Mine Life analyst Gavin Wendt said the initial reaction was not surprising as all the language from Rudd was that he was anti- mining and was not going to back down from the proposed resources super-profits tax.

Macquarie Equities said the 40 percent super profits tax will likely be subject to significant change with Gillard expected to announce a major overhaul of the tax proposal.

"At this stage, it is expected that the government will either dramatically restructure the tax in an effort to negate this issue ahead of the next election or opt to defer any finalization of the form and substance of the proposed tax until after the Federal election," the broker said.

The Australian dollar took the change of leadership in its stride standing at 87.66 U.S. cents.

Gillard became Australia's first woman prime minister Thursday after Kevin Rudd stepped aside as party leader.

Editor:Du Xiaodan |Source: Xinhua

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