Australian Stocks in 5-day Rally, Dollar Trades Near Parity

Marcus Jacob
11 Oct, 2011
New York City

Australian stocks for the fifth day in a row and resource stocks led the gainers. The Australian dollar traded above parity with the U.S. dollar in intra-day trading. Banks gained and resource linked stocks closed mixed.

[R]6:00 PM Sydney – Australian stocks for the fifth day in a row and resource stocks led the gainers. The Australian dollar traded above parity with the U.S. dollar in intra-day trading. Banks gained and resource linked stocks closed mixed.[/R]

Australian stocks gained for the fifth day in a row on more promises of quicker resolutions to the debt crisis in the euro zone.

Herman Van Rompuy, president of the council of European Union leaders delayed the meeting of European leaders by a week to October 23 and set that as the deadline to announce a plan to recapitalize banks and expand the power the European rescue fund.

Separately, Greece also indicated that it may take larger than expected write down of its 350 billion of sovereign debt as early as October summit.

German Chancellor Angela Merkel is targeting to write down Greek debt by 50% from the current agreed upon 21% debt reduction.

The ASX 200 index increased 26.6 or 0.6% to 4,227.6 and All Ordinaries index rose 26.5 or 0.6% to 4,288.80.

The Australian dollar declined 0.5% to US$0.994 and gold increased US$29.81 to US$1,680.62.

In trading, 1.68 billion shares changed hands worth $4.69 billion and of the 10 shares traded six stocks gained.

Stock Movers

Fairfax Media closed 2.50 cents at 93 cents a day after the company agreed to sell its regional radio broadcasting operations to Grant Broadcasters.

Extract Resources declined 11 cents to $8.75 a day after when it soared 10% on the speculation that the company may receive a bid from China based Guandong Nuclear Power.

BHP Billiton Ltd increased $0.29 to $37.39 and the miner plans to invest at least $20 billion to expand its largest open cut mining operations in South Australia.

Rio Tinto Ltd increased $0.60 to $68.00. Newcrest Mining Limited increased $0.53 to $36.40 and Lynas Corp decreased 3 cents to $1.23.

Fortescue Metals decreased 13 cents to $4.81. Iluka Resources increased $0.65 to $16.05 and Paladin Energy Ltd decreased 5 cents to $1.66. Blue Scope Steel increased 5 cents to 90 cents.

Oil Search Limited increased 11 cents to $6.06, Santos Limited added 33 cents to $12.66 and Woodside Petroleum added 4 cents to $35.59.

Commonwealth Bank of Australia closed up $0.54 to $47.25 and National Australia Bank added $0.16 to $24.21. ANZ edged up $0.20 to $21.20. Westpac increased $0.22 to $21.92. Macquarie Group added $0.67 to $25.11.

Qantas Airways Limited closed up 3 cents to $1.55 as the carrier faces another strike action by its engineers this Friday.

David Jones Limited closed up 8 cents to $3.06 and Wesfarmers increased $0.16 to $31.75.

Woolworths Limited decreased 23 cents to $24.62 and James Hardie Industries SE fell 17 cents to $5.80. Treasury Wine Estate declined 11 cents to $3.86.

Stockland fell 5 cents to $3.01 and Westfield Group fell 13 cents to $7.69.