Commonwealth Bank of Australia Net Lifts Market Index; Boral Net Up 28%

Marcus Jacob
09 Feb, 2011
New York City

Australian stocks were lifted after Commonwealth Bank of Australia reported higher than expected earnings and declared dividend of $1.32 a share. Construction materials maker Boral soared as much as 7% after first half net rose 28%.

[R]5:00 PM Sydney – Australian stocks were lifted after Commonwealth Bank of Australia reported higher than expected earnings and declared dividend of $1.32 a share. Construction materials maker Boral soared as much as 7% after first half net rose 28%.[/R]

The ASX 200 index gained 15.4 to 4,905.8 and All Ordinaries index added 12.9 to close at 4,996.

Commonwealth Bank of Australia, the largest mortgage lender said net for the first half ending in December rose to $3.05 billion compared to $2.91 billion a year ago period.

The underlying cash profit, excluding one-time items rose 13% to $3.34 billion from $2.94 billion.

The bank also set aside $100 million for potential financing cost related to flood losses in Queensland and declared a $1.32 interim dividend or 6.7% payout of the net profit.

Building materials group Boral said first half net increased 28% to $94 million and earnings before tax and interest rose 8% to $151 million and revenues increased 4% to $2.4 billion.

Chief executive Mark Selway estimated full year net between $160 million and $175 million.

Selway also said that roughly 25% of company sales and earnings are from Queensland are expected to take a hit in the current quarter but may recover as early as June quarter.

Weak construction and housing starts in the U.S. also affected results. U.S. division’s earnings before tax and interest were a net loss of $47 million.

Boral also confirmed interim dividend of 7.5 cents a share, 0.5 higher than the previous year period.

Stock Movers

Banks were leading gainers in trading today. Commonwealth Bank added $1.15 or 2.1% to close at $55.07.

ANZ gained 2.1% to $24.10 and National Australia Bank added 51 cents to close at $25.99. Macquarie Group declined 3.3% or $1.35 to $39.75.

Rio Tinto increased 1.2% to $88.38 after it said it will invest at least US$1 billion at its mines in Canada and Australia.

OZ Minerals increased 2.5 cents to $1.79 after it reported annual 2010 net profit of $586.9 million.

Boral surged 9% to close at $5.14 after it 36% increase in first half profit to $29.3 million and estimated 20% increase in full year profit.

Sims, the metal recycler dropped 4.5% to $18.69 after it reported first half net increased 24%.