Australian Stocks Power Ahead; Record BHP Billiton Production

Marcus Jacob
20 Jul, 2011
New York City

Australian stocks soared tracking a surge in international markets and BHP reported strong production. However the index of leading indicators and consumer spending declined to the slowest growth in 20 months. Woolworths reported food and liquor sales dropped 10% in the quarter.

[R]4:30 PM Sydney – Australian stocks soared tracking a surge in international markets and BHP reported strong production. However the index of leading indicators and consumer spending declined to the slowest growth in 20 months. Woolworths reported food and liquor sales dropped 10% in the quarter.[/R]

Australian stocks rebounded sharply tracking gains in international markets. The resource sector stocks also rose after BHP Billiton reported strong production report but index of leading indicators was at its weakest in 20 months.

The ASX 200 index increased 81.60 or 0.09% to 4,468.1 and All Ordinaries index added 79 or 1.75% to 4,618.40.

The Australian dollar increased 0.1% to US$1.074. Spot gold in Sydney trading decreased $18.45 to US$1,588.60 an ounce.

In trading, turnover increased to 2.53 billion shares worth $5.17 billion and 771 shares closed higher, 318 declined and 333 were unchanged.

The index of leading indicators tracked by Westpac-Melbourne Institute showed an increase of 1.6% in May after rising at 2.2% in April.

Stock Movers

Woolworths increased 20 cents to $27.45 and Wesfarmers added 88 cents to $31.08. David Jones increased 3 cents to $3.16 and Myer added 7 cents to $2.44. JB Hi-Fi added 31 cents to $15.26.

Woolworths reported fiscal year sales increased 4.7% to $5.41 billion despite weak consumer sentiment. Food and liquor sales in the quarter declined 9.9% from the previous quarter.

BHP Billiton increased 1.9% or 82 cents to $43.44, Rio Tinto added $1.22 to $82.55 and Newcrest Mining added 8 cents to $40.81.

BHP Billiton said iron ore output increased 8% to 134.4 million tons in the first half to June and coal production declined 13% to 32.7 million tons.

James Hardie increased 10 cents to $5.80 and Boral added 17 cents to $4.24.

Banks led the gainers with the improved sentiment in financial markets.

ANZ increased 43 cents to 421.20, National Australia Bank added 62 cents to $24.29, Commonwealth Bank increased $1 to $49.55 and Westpac jumped 48 cents to $21.16.

News Corp shot up 5% or 74 cents to $15.24 and was the best performer among the top 100 heavily traded stocks on the expectations that the company may remove Murdoch family from the management and install professional management.