Cyclone Yasi Damage Worries; Australian Stocks Up

Marcus Jacob
03 Feb, 2011
New York City

Australian stocks closed higher as Cyclone Yasi makes its way inlands in North Queensland. Homes, power lines and trees are flattened as the powerful storm covers a vast area. Tabcorp earnings rose 2.9% and declared dividend of 24 cents.

[R]5:00 PM Sydney – Australian stocks closed higher as Cyclone Yasi makes its way inlands in North Queensland. Homes, power lines and trees are flattened as the powerful storm covers a vast area. Tabcorp earnings rose 2.9% and declared dividend of 24 cents. [/R]

Cyclone Yasi, considered the worst in Australian history made a landfall in North Queensland around midnight as category 5 storm and devastated thousands of homes and knocked down power lines and flattened trees in a vast area that covers rainforest as well.

The storm has weakened to category 2 storm but residents are warned by the national weather service that Yasi is still dangerous and likely to cause more damage as it makes its way inland.

Australian market indexes braved to close higher tracking the gains in copper, coal and other base metal prices. Cyclone Yasi caused widespread damage in Queensland region and sugar farmers are expected to bear the brunt of losses.

ASX 200 index increased 24.1 or 0.5% to 4820.60 and the broader All Ordinaries index gained 21.4 or 0.44% to 4,919.30.

The Australian dollar closed at $1.013.

Qantas chief executive said that the airline will increase its fuel surcharge between A$20 and A$50 on one-way international fares and blamed high crude oil prices. He added that oil prices have jumped 24% and in the last four months and the dollar has increased 6% that helped to partially offset the charge.

However airline chief executive did not make any comments on the high bonus and salaries for executives.

Stock Movers

Tabcorp Holdings added 21 cents to A$7.11 after the gambling company said first half net rose 2.9%. Net in the period increased to A$265.5 million and said that it is on track to split its casino business by the end of the fiscal year in June. Tabcorp also declared interim dividend of 24 cents.

BHP Billiton increased 62 cents to close at A$46.32 and Rio Tinto gained 38 cents to closed at A$86.20.

Equinox Minerals soared 7.6% or 47 cents to A$6.66 after the copper miner clarified its expansion plans at a mine in Zambia.

Newcrest declined 31 cents to A$36.86 as gold prices declined in Sydney to close at $1,333.40.

Banks were largely unchanged in trading. Commonwealth Bank increased 14 cents to A$52.59 and National Australia Bank was nearly unchanged at A$24.64. Westpac added 18 cent to A$23.28.