Australian Index Extends Gains; Cochlear Earnings Hit by Strong Dollar

Marcus Jacob
27 May, 2011
New York City

Australian stocks extended gains for the second day as markets in Europe and New York advance. Asian markets closed nearly flat. Cochlear declined after it reported foreign exchange losses depressed earnings by $16.5 million.

[R]4:45 PM Sydney – Australian stocks extended gains for the second day as markets in Europe and New York advance. Asian markets closed nearly flat. Cochlear declined after it reported foreign exchange losses depressed earnings by $16.5 million.[/R]

Australian stocks extended gains for the second day in a row however trading volume was weak. Asian markets barely budged and in the overnight trading stocks in Europe and in New York closed higher.

The ASX 200 index increased 23.80 to 4,684 and All Ordinaries index gained 25.20 or 0.5% to 4,760.30.

In trading, 2 billion shares changed hands worth $5.9 billion. Of the stocks traded, 639 increased 432 decreased and 387 were unchanged.

The Australian dollar increased to US$1.0659 and crude oil prices gained 32 cents to US$100.55.

Stock Movers

Centrebet increased 11 cents or 6% to $1.95 after agreed to be acquired by UK based Sportingbet for $183 million.

Cochlear declined as much as 0.8% after it reported first half profit of $87.2 million. Strong Australian dollar hurt the earnings by $16.5 million.

Banks extended gains for the third day. Commonwealth Bank increased 57 cents to $50.97 and National Australian Bank increased 22 cents to $26.37. Westpac declined 10 cents to $22.15.

Fisher & Paykel increased 4 cents to 46 cents after it said it generated net profit in the year to March and sales declined 3.7% from a year ago to NZ$1.12 billion.

JB Hi-Fi increased 53 cents to $17.10. Wesfarmers increased 40 cents to $33.08 and Woolworths increased 13 cents to $27.28.

BHP Billiton increased 21 cents to $44.12 and Rio Tinto added 45 cents to $80.70. Fortescue advanced 7 cents to $6.40.

AJ Lucas Group halted at $1.35 and lowered its annual earnings outlook and said it will sell assets to lower its “unsustainable” debt load.