Australian Stocks Higher; QR National Swings to Profit

Marcus Jacob
29 Aug, 2011
New York City

The Australian benchmark index gained and commodities linked stocks and bank led the advance. QR National swung to a profit but fell short of its outlook. Centro Properties warned that the company has no alternative but to merge with Centro Retail.

[R]4:30 PM Sydney – The Australian benchmark index gained and commodities linked stocks and bank led the advance. QR National swung to a profit but fell short of its outlook. Centro Properties warned that the company has no alternative but to merge with Centro Retail.[/R]

Stocks in Sydney traded higher following a rally in Asian markets. Commodities also gained and resource linked companies and banks led the gainers.

The ASX 200 index rose 63.30 or 1.5% to 4,263.3 and All Ordinaries index added 62.70 or 1.5% to 4,334.

The Australian dollar closed up 0.3% to US$1.062 and gold price increased $26.80 to US$1,772.13.

In trading, turnover decreased to 1.9 billion shares worth $6.5 billion with 447 stocks rising, 509 declining and 365 unchanged.

QR National, the recently privatized rail road operator reported net profit before interest and taxes of $367 million, below its guidance range between $380 million and $410 million.

The full year net profit declined to $349.5 million for the period ending in June compared to a loss of $36.8 million a year ago and revenue rose 11% to $3.29 billion.

The company also said that coal shipments are 18% below a year ago volumes in the current fiscal year and the wet weather lowered coal volumes by 37% in the year completed by the end of June.

The railroad operator said it will eliminate 660 staff and plans to restructure the company and lower operating costs. The company also declared dividend of 3.7 cents.

Stock Movers

Charter Hall Office soared 16% after Macquarie Group led consortium agreed to acquire the real estate trust for $1.7 billion.

QR National added 1% to $3.20 after the recently listed rail road operator reported net profit before interest and taxes of $367 million, below its guidance range between $380 million and $410 million.

BHP Billiton Ltd increased 51 cents to $39.15 and Rio Tinto added 51 cents to $70.61. Newcrest Mining Ltd added 58 cents to $40.07.

Leighton Holdings fell 43 cents or 2% to $20.57.

Lend Lease Group added 29 cents to $8.18 and the company reported full-year net income surged 43% to $492.8 million and revenues declined 15% to $8.93 billion.

Commonwealth Bank of Australia increased 59 cents to $47.96 and National Australian Bank added 29 cents to $23.44. ANZ increased 36 cents to $20.21. Westpac Banking Corp gained 37 cents to $20.42.

Fairfax Media increased 0.5 cent to 83.5 cents and last week the media conglomerate posted fiscal year 2011 loss of $390.9 million compared to profit of $282.1 million a year ago.

Qantas fell 1 cent to $1.57 and the airline reported last week annual net profit soared to $250 million on revenue increase of 8% to $14.9 billion.

Virgin Blue Holdings gained 1 cent to 28 cents.

Woolworths increased $0.18 to $2541 and Toll Holdings fell 2 cents to $4.63.

Centro Properties Group closed up 0.3 cent to 4.3 cents reported a sharp jump in profit after accounting adjustments and said that it cannot avoid liquidation unless it merges with Centro Retail Group.

Centro Properties reported full-year earnings soared five-fold to $2.74 billion on accounting adjustment gain of $1.3 billion. Underlying profit declined to $14.6 million from $173.8 million in the previous year.

Centro Properties net equity attributable to shareholders improved to negative $1.7 billion from negative $2 billion.