Best Monthly Gains in Australian Stocks in 2 Years; Qantas Up 4%

Marcus Jacob
31 Oct, 2011
New York City

Australian stocks closed lower on the last day of October and but gained 7.1% in the month. October month gain was the best since July 2009. Banks led the decliners and resource stocks closed mixed. Qantas resumed flight operations after an order from labor tribunal.

[R]6:00 PM Sydney – Australian stocks closed lower on the last day of October and but gained 7.1% in the month. October month gain was the best since July 2009. Banks led the decliners and resource stocks closed mixed. Qantas resumed flight operations after an order from labor tribunal and expects to catch near normal schedule by Wednesday.[/R]

Stocks in Australia closed lower on the worries that the euro zone may face more challenges in implementing Greek bond restructuring and European banks may struggle to raise capital.

Australian banks led the decliners and resources stocks closed mixed.

The ASX 200 index decreased 1.3% or 55.2 to 4,298.1 and All Ordinaries index declined 1.2% or 50.9 to 4,360.5. For the October month, the ASX 200 index gained 7.1%, its best monthly performance since July 2009 when the index soared 7.6%.

The Australian dollar fell 1.1% to US$1.059.

In trading, 1.88 billion shares changed hands worth $4.34 billion and nearly 1 stock rose for every 4 that declined.

Stock Movers

BHP Billiton Ltd closed down $0.89 to $37.80 and Rio Tinto Ltd declined $1.01 to $69.21.

Fortescue Metals Group decreased 15 cents to $4.85, Lynas Corporation Limited fell 9.5 cents to $1.205 and the company said its rare earth processing plant in Malaysia will be delayed until the first half of 2012.
Iluka Resources gained 42 cents to $16.74.

Oil Search Limited increased 9 cents to $6.56, Santos Limited fell 24 cents to $12.96 and Woodside Petroleum added 56 cents to $36.56.

Cochlear Limited fell $0.21 to $58.57.

Commonwealth Bank of Australia closed down 69 cents to $49.27 and National Australia Bank decreased 29 cents to $25.70. ANZ edged down 40 to $21.68. Westpac fell 36 cents to $22.32.

David Jones Limited closed down 13 cent to $3.39 and Wesfarmers Limited decreased 23 cent to $32.46. Wesfarmers plans to issue $300 million local corporate bond issue with a five year maturity that will yield 150 basis points above the bank bill swap rate, according to two banking sources in Sydney.

Woolworths Limited decreased 1 cent to $23.81 and James Hardie Industries SE decreased 8 cents to $6.23. Treasury Wine Estate closed down 11 cents at $3.77.

Qantas Airways Ltd closed up 6.75 cents to $1.61 after the tribunal ordered workers to return to work and asked the airline to resume flights. Qantas operated few flights today and by Wednesday expects to resume more than 70% of its flights.

Virgin Blue rose 1.5 cents to 37.5 cents but Flight Centre declined 9 cents to $19.88.