Australian Index Up 1.9%; CBA, Paladin, Goodman Group Up

Marcus Jacob
16 Sep, 2011
New York City

The benchmark index in Australia jumped 1.9% and closed up 1.1% for the week. The coordinated move by four central banks lifted banks and resource stocks in Australia and markets in Asia. Property stocks were among the leading gainers.

[R]4:30 PM Sydney – The benchmark index in Australia jumped 1.9% and closed up 1.1% for the week. The coordinated move by four central banks lifted banks and resource stocks in Australia and markets in Asia. Property stocks were among the leading gainers.[/R]

The Australian stocks rebounded on the back of optimism in the euro zone and higher markets in Asia. Markets in Japan, Taiwan and Hong Kong gained more than 2% and in South Korea jumped 3%.

The market index in Australia jumped nearly 2% for the second day this week led by strong advances in banks and energy stocks.

The banks were ahead after four central banks provided dollar liquidity to European banks. The Federal Reserve of the U.S., the Bank of Japan, the Bank of England and the Swiss National Bank acted together to offer dollar loans to banks in Europe.

The preemptive move by the central bank restored the confidence at least for now and stabilized the short term debt market. Australian banks are also dependent on short term debt markets in the U.S. and UK.

The ASX 200 index gained 77.70 or 1.9% to 4,149.4 and All Ordinaries index rose 76.7 or 1.85% to 4,229.9. The benchmark index ASX 200 increased 1.1% in the week.

The Australian dollar closed up 0.3% to US$1.0359 and fetched 79.40 yen compared to 78.32 yen yesterday. The spot price of gold declined $40.59 to US$1,769 per ounce.

In trading, stock volume increased to 2.32 billion and shares worth $5.15 billion changed hands.

Stock Movers

Property developer Goodman Group soared 4 cents to 64.5 cents and ConnectEast Group declined 2 cents to 49 cents.

BHP Billiton Ltd increased $0.60 to $38.23 and Rio Tinto added $1.89 to $71.27.

Newcrest Mining Limited was unchanged at $38.11 and Atlas Iron increased 12 cents to $3.78. OceanaGold Corp increased 11 cents to $2.75. Kingsgate Consolidated added 22 cents to $8.05.

Iluka Resources increased 52 cents to $15.31.

Sundance Resources increased 7% to 46 cents on the media reports that China based Hanlong Mining is expected to go ahead with its $1.3 billion bid for the company despite an ongoing insider trading investigation at Hanlong.

Paladin Energy Ltd increased 5.4% to $1.65 and the company said its uranium production has resumed at its mine in Malawi after the infrastructure upgrade.

Oil Search Limited increased 15 cents to $6.10, Santos Limited added 24 cents to $11.45 and Woodside Petroleum increased $1.04 to $34.25. Origin Energy added 34 cents to $13.43.

Commonwealth Bank of Australia increased $0.82 to $45.58 and National Australia Bank rose 53 cents to $22.86. ANZ added 39 cents to $19.80. Westpac rose 51 cents to $19.92.

Macquarie Group increased $1.06 to $22.51.

Qantas Airways Limited added 5 cent to $1.59 and Telstra was unchanged at $3.06.

David Jones decreased 1 cent to $2.69 and Wesfarmers added 15 cents to $30.73.

Myer increased 4 cents to $2.10 after it estimated profit in the current year to decline as much as 10%.