Australian Stocks Swing Higher; Rio Tinto Predicts 10 Years of Growth

Marcus Jacob
28 Jun, 2011
New York City

Australian index inched higher as investors tiptoed back to the market and set aside the worries related to Greece. Crude oil declined but resources linked stocks closed higher. Rio Tinto chief executive predicted company growth for the next ten years.

[R]4:40 PM Sydney – Australian index inched higher as investors tiptoed back to the market and set aside the worries related to Greece. Crude oil declined but resources linked stocks closed higher. Rio Tinto chief executive predicted company growth for the next ten years.[/R]

Australian index inched higher in a cautious trading as crude oil declined. Investors tiptoed in the market as Greece faces a 2-day strike as lawmakers debate austerity measures conditions.

In overnight trading, U.S. and European markets closed higher on the optimism that Greece will pass the latest demands from the European Union and the IMF to access the latest tranche of bailout funds.

The ASX 200 index increased 12.50 or 0.3% to 4,474.3 and All Ordinaries index added 0.2% 9.4 to 4,523.20.

The Australian dollar decreased to US$1.044 and crude oil dropped a fraction to US$90.58.

In trading, turnover declined to 2.08 billion shares worth $4.82 billion. Of the stocks traded, 528 stocks increased, 587 decreased and 460 closed unchanged.

Stock Movers

BHP Billiton increased 17 cents to $42.37 and Rio Tinto gained 55 cents to $80.35. Newcrest Mining Limited added 28 cents to $36.35.

Rio Tinto chief executive Tom Albanese stated at a business gathering in Perth said the demand for resources is expected to grow “unabated” over the next 10 years and the company will continue to pour money into its iron ore projects in Western Australia.

Banks closed higher.

Westpac Banking Corp increased 37 cents to $21.66, ANZ added 16 cents to $21.40 and National Australia Bank gained $24.82.

Energy related stocks closed lower after oil touched 4-month low.

Santos Limited decreased 2 cents to $12.92 and Woodside Petroleum fell 32 cents to $39.64. Oil Search Limited declined 6 cents to $6.31.

Cochlear Limited added $1.63 to $70.62.