Late Rally in Sydney Stocks

Chandrasekhar Atreya
13 Aug, 2010
New York City

Stocks in Australia gained after a late rally in mining stocks. Qantas Airways reports improvement in bookings from the domestic and Asia markets. AngloGold increases it gold output target. Atlas Iron is closer to acquiring Aurox Resources.

[R]6:00 PM Sydney, Australia – Stocks in Australia gained after a late rally in mining stocks. Qantas Airways reports improvement in bookings from the domestic and Asia markets. AngloGold increases it gold output target. Atlas Iron is closer to acquiring Aurox Resources.[/R]

Stocks in Sydney trading closed higher after a late rally in mining stocks. Earlier stocks opened lower on the global markets weakness but recovered in the late afternoon session.

The ASX 200 Index gained 1.33% or 58.70 points to close at 4,459.60.

Rio Tinto Ltd said Thursday it has decided in principle to buy back all its ordinary shares held by Rio Tinto Plc, after shareholders approved the buyback at the annual general meeting. The buyback would take place in two tranches with the first purchase scheduled this month valued at $9.2 billion and the balance later this year.

Atlas Iron Ltd is one step closer to acquiring iron ore explorer Aurox Resources Ltd after the Federal Court approved the takeover. Earlier this month, Aurox shareholders overwhelmingly approved the merger proposal worth around A$143 million.

Aurox plans to lodge the orders with the Australian Securities and Investments Commission on Friday.

Non-bank lender FirstMac plans to sell around A$420 million of residential mortgage-backed securities.

Telstra stands to book a sizeable profit on the sale of its stake in Hong-Kong-based SouFun, online real estate Web site, after the telecom operator is close to striking a deal with General Atlantic and Apax Partners.

Chevron has located gas field in Carnarvon Basin, according to company statement and this adds to its strong reserves at Gorgon and Wheatstone liquefied natural gas projects.

Melbourne Airport priced a A$350 million bond issue, adding a A$100 million four-year tranche while increasing its six-year bond sale by A$50 million to A$250 million.

Qantas Airways Ltd said bookings have risen since July 1 as corporate demand revives.

“It’s been very good for us. There are still some weaknesses in the U.S. and the U.K but the Asian operations, the domestic operations, and the Australian markets are seeing a good recovery,” said CEO Alan Joyce in a Bloomberg Television interview.

Resource News

Pluton Resources received final assay results from its vertical drill hole 10DDH020 from phase II drilling program on Irvine Island in Western Australia.

Gold Anomaly reports trench sampling at the Crater Mountain gold project in Papua New Guinea has returned high-grade gold assays.

AngloGold Ashanti, the world’s third-largest gold miner, set itself a target of adding one million ounces over the next five years after maintaining calendar year 2010 production guidance between 4.5 million to 4.7 million ounces.

Atomic Resources reported that an agreement has been signed relating to the construction of a 400 megawatt power station that will use coal from Atomic’s Ngaka coal project in Tanzania.

Ramellus Resources scheduled a significant drill program at its Mount Magnet project in Western Australia aimed at adding to current resources and testing new targets to increase high-grade resources.

Monax Mining was granted the first group of tenements in its Pretender Creek project in the Cape York bauxite province.

Gainers & Losers

Panoramic Resources Ltd led the gainers in the ASX 200 with a gain of 13% to A$2.52 followed by Western Areas NL 11.83% to A$5.01 and Lynas Corporation Ltd 7.83% to A$0.895.

James Hardie Industries led the decliners with a fall of 2.28% to A$5.57 followed by Sims Metal Management Ltd 1.8% to A$16.91 and Brambles Ltd 1.69% to A$5.23.