Australian Stocks Rebound; Talbot Sells 16% Stake in Sundance Resources

Marcus Jacob
18 Mar, 2011
New York City

Australian stocks rebounded after markets in Asia turned positive on the G7 pledge to support the weak yen. The Bank of Japan in a coordinated move sold more than one trillion yen and expected more selling by the European and the U.S. central banks.

[R]5:00 PM Sydney – Australian stocks rebounded after markets in Asia turned positive on the G7 pledge to support the weak yen. The Bank of Japan in a coordinated move sold more than one trillion yen and expected more selling by the European and the U.S. central banks.[/R]

The ASX 200 index increased 71.10 or 1.6% to 4,626.40 and All Ordinaries index increased 77.40 or 1.7% to 4,715.80.

In active trading session miners, banks and energy stocks led the gainers. In a preliminary estimate from the exchange $8.1 billion worth of 4.2 billion shares changed hands and 943 closed higher, 249 declined and 330 closed unchanged.

The Australian dollar increased to 99.24 U.S. cents in a volatile trading as the G7 nations coordinated to weaken the Japanese yen after a meeting of central bankers.

Crude oil increased $3.48 to US$101.45 a barrel as tensions in the Middle East rose and violence in Bahrain and Libya intensified.

Stock Movers

Resources stocks climbed as metals prices edged higher in Asian trading. Uranium miners rebounded but not enough to recover from the losses in the week.

BHP Billiton increased 86 cents to $44.56 and Rio Tinto added $1.30 to $80.50.

Energy Resources of Australia increased 68 cents or 9% to $8 and Extract Resources increased 50 cents or 7.7% to $7. Paladin Energy increased 25 cents to $3.46.

Origin Energy declined 1.7% to $15.40 after the natural gas distributor said that completed 95% sale of its institutional tranche of $2.3 billion share offering.

Energy stocks closed higher after crude oil jumped. Woodside added $1.56 to $44.41, Oil Search increased 23 cents to $6.99 and Santos added 67 cents to $15.05.

Banks closed higher in a rally that lifted stocks in most sectors. Westpac increased 29 cents to $22.63 and National Bank of Australia increased 20 cents to $24.48 and Commonwealth Bank added 57 cents to $50.32.

Sundance Resources closed up 2 cents to 49 cents. But during the session the exchange confirmed that a trade equivalent of 16% stake in the company changed hands for 44 cents a share or $190.0 million held by Talbot Group Investments.

The estate of the founded Ken Talbot has been selling stakes in various mining companies including the largest stake in Karoon Gas worth $194 million and in uranium miner Marathon Resources worth $13 million.

Telstra delayed its shareholder vote on July 1 to approve the transfer of $11 billion of assets to NBN Co that will turn it into a wholesale company and open up its broadband network to a number of competitors.

The company said it is still seeking certain government approvals and assurances from the competition authorities that access to its network will not be sold at a discount to competitors.