Australian Stocks Rebound; Transpacific Estimates Loss

Marcus Jacob
29 Jun, 2011
New York City

Australian stocks rebounded ahead of Greek austerity vote. Resource stocks gained on the back of higher oil and metals. Transpacific Industries revised lower its annual outlook.

[R]4:40 PM Sydney – Australian stocks rebounded ahead of Greek austerity vote. Resource stocks gained on the back of higher oil and metals. Transpacific Industries revised lower its annual outlook.[/R]

The Australian index increased 1.2% as crude oil rebounded. World markets remain focused on the outcome of Greek Parliament vote.

The passage of austerity measures that will see the reduction in $28 billion in government spending and will allow Greece to access the last tranche of first bailout from the European Union, the IMF and the European Central Bank.

In overnight trading, U.S. and European markets closed higher on the optimism that Greece will pass the latest budget cuts. The ruling party has a thin majority in Greek Parliament and there are growing signs that the deeply unpopular austerity measures may not be approved by lawmakers.

Greek Prime Minister George Papandreou urged lawmakers to put party differences aside and focus on the national interest.

The ASX 200 index increased 55.20 or 1.2% to 4,529.5 and All Ordinaries index added 1.25% or 56.6 to 4,579.80.

The Australian dollar increased to US$1.063 and crude oil gained $2.27 US$92.88.

In trading, turnover increased to 2.18 billion shares worth $4.78 billion. Of the stocks traded, 721 stocks increased, 448 decreased and 413 closed unchanged.

The International Monetary Fund appointed French Finance Minister Christine Lagarde as the next managing director by a consensus vote. Lagarde in the past has been critical of the banks to plan allocate more loans to emerging nations.

The IMF has become the tool of European politicians to control funding to developing nations and yet to appoint its head from emerging markets. The multilateral agency has been perceived widely around the world as the bank controlled by the Europeans and the World Bank by the U.S.

Stock Movers

BHP Billiton increased 78 cents to $43.15 and Rio Tinto gained $1.18 to $81.53.

Telstra declined 2 cents to $2.89 after chief financial officer and board member John Stanhope said he will retire at the end of the year after forty years with the company.

ANZ increased 20 cents to $21.60, National Australia Bank gained 36 cents to $25.18, Commonwealth Bank increased 57 cents to $511.37 and Westpac increased 16 cents to $21.82.

Insurance Australia Group decreased 2 cents to $3.38 after NRMA sold its half stake in the company.

Transpacific Industries Group Ltd increased 3 cents to 78 cents after the waste management and manufacturing company revised its outlook lower. The company now guided annual loss between $177 million and $209 million compared to $59 million of profit a year ago.