Australian Index Up 1.6%; Fortescue Production Increases 5.4%

Marcus Jacob
17 Oct, 2011
New York City

Stocks in Sydney closed higher after metals prices gained in international markets. Qantas continue to struggle with its flight schedule after engineers strike grounded five planes and forced 16 domestic flights cancellation. Super Retail Group agreed to acquire sports goods retailer Rebel Group.

[R]6:00 PM Sydney – Stocks in Sydney trading closed higher after metals prices gained in international markets. Qantas continue to struggle with its flight schedule after engineers strike grounded five planes and forced 16 domestic flights cancellation. Super Retail Group agreed to acquire sports goods retailer Rebel Group.[/R]

Australian stocks closed higher as resource and banking stocks led the gainers. The indexes extended gains after international markets advanced on Friday and metals prices rose.

The ASX 200 index increased 69.8 or 1.7% to 4,275.4 and All Ordinaries index added 68.9 or 1.61% to 4,337.90.

The Australian dollar fell 0.7% to US$1.026 and gold increased US$15.80 to US$1,644.20.

Trading volume increased to 1.6 billion shares worth $3.4 billion with 683 stocks trading higher, 312 declined and 346 closed unchanged.

Stock Movers

BHP Billiton Ltd increased $0.79 to $37.65 and Rio Tinto Ltd rose $1.65 to $69.95. Aquarius Platinum gained 14 cents $3.09. Iluka Resources added 86 cents to $16.95.

Fortescue Metals increased 22 cents to $5.11 and iron production in the fiscal quarter ending in September increased 5.4% to 12.2 million tons. Production cost declined 6.4% to US$49.78 a ton and selling priced increased to US$160 a ton.

The company estimated December quarter iron ore output to increase between 13.5 million tons and 14 million tons and for the current fiscal year to 55 million tons.

The fourth largest iron ore miner in the world said it has $2.1 billion in cash and said holding production cost below US$45 a ton will be a challenge.

Linc Energy added 7 cents to $2.13.

Leighton Holdings increased 60 cents to $20.87 and the company won an offshore contract order worth $520 million from Iraq based South Oil Company.

Oil Search Limited increased 5 cents to $6.02, Santos Limited added 9 cents to $12.54 and Woodside Petroleum added 34 cents to $35.37.

Commonwealth Bank of Australia closed up $0.81 to $48.31 and National Australia Bank increased 47 cents to $24.75. ANZ edged up $0.37 to $21.36. Westpac increased $0.38 to $21.99.

David Jones Limited closed down unchanged at $2.97 and Wesfarmers Limited increased $0.30 to $31.94.

Super Retail Group was halted at $6.50 after the company said it will acquire sports goods retailer Rebel Group for $610 million.

Woolworths Limited decreased 20 cents to $24.69 and James Hardie Industries SE increased 11 cents to $5.70. Treasury Wine Estate rose 1 cent to $3.84.

Qantas decreased 2 cents to $1.54 after the company canceled 16 domestic flights and blamed maintenance staff strike and grounded 5 planes.