James Hardie Industries NV (JHX) said a 5.1% rise in its share price on Friday followed a rally in US homebuilder stocks. Approximately 80% of the company’s net sales are sourced in the US.

The announcement followed a speeding ticket issued by the ASX after its stock rose from $3.49 on 3 December to a high of $4.41 during trade on 5 December.

The company said it was not aware of any unannounced information that could explain the rise in its share price.

James Hardie noted that its stock price was strongly correlated with sentiment towards the US housing market, as were movements in listed US homebuilder stocks.

It said the share prices of seven US homebuilder stocks including DR Horton and Toll Brothers rose by an average of 6.83% during Wall Street trade on 4 December.

"The movement in US building stocks followed the release [prior to the ASX opening on 4 December 2008] of data compiled by the US Mortgage Bankers Association showing applications to refinance existing loans more than doubling and mortgage applications to buy a home rising about 38%, last week from the week before," James Hardie said in a statement.

The company noted that the upward movement in the company’s share price in recent days should be viewed in the context of a broader decline in its share price in recent months.

"Daily volatility in building stocks has increased due to the uncertainty created by the global economic crisis," the company said.

The company also said settlement talks with the Australian Tax Office in regard to audits dating back to 2002 were ongoing.

At 1111 AEDT, James Hardie was trading up 26c or 6.3% to $4.39.