6-day Rally in Australian Stocks; Aston, Whitehaven Coal Talk Merger

Marcus Jacob
05 Dec, 2011
New York City

Australian indexes rallied for the sixth day and lifted gain in the period to 8%. Market sentiment was positive ahead of the RBA meeting tomorrow. Aston Resources confirmed merger talks with Whitehaven Coal. Aquila Resources won approval to build a rail line to transport iron ore in Pilbara region.

[R]8:00 PM Sydney – Australian stocks extended rally for the sixth day and lifted indexes to a gain of 8%. Market sentiment was positive ahead of the Reserve Bank meeting tomorrow. Aston Resources confirmed it is in merger talks with Whitehaven Coal. Aquila Resources won approval to build a rail line to transport iron ore in Pilbara region.[/R]

Australian stocks rallied for the sixth day in a row and lifted the benchmark index to a gain of 8% in the period. Investors bid up resources linked stocks and the euro zone leaders offered more plans to contain the widening debt contagion.

Market indexes closed higher ahead of the Reserve Bank of Australia meeting tomorrow amidst high expectations of second rate cut in as many months.

The ASX 200 index added 33.3 or 0.8% to 4,321.3 and All Ordinaries index gained 0.8% or 33.2 to 4,379.50. The ASX 200 index extended gains to 8% increase in a six-day rally.

The Australian dollar edged higher 0.3% to US$1.027.

Italy offered to cut spending and stimulate the economy and said the plan will balance the budget in the next fiscal year. The new measures offered by the technocratic Prime Minister Mario Monti will total 30 billion euros.

Stock Movers

BHP Billiton Ltd gained $0.61 to $37.26 and Rio Tinto Ltd increased $0.68 to $67.00. Newcrest Mining fell $0.56 to $35.39.

Aston Resources soared 4% to $9.49 after the coal miner confirmed that it is in talks to merge with Whitehaven Coal. Whitehaven Coal gained 7 cents to $5.71.

Flinders Mines increased 1 cent to 28 cents after the court order lifted the asset freeze for Russia based MMK which is bidding $566 million for the company.

Fortescue Metals Group decreased 1 cent to $4.85, Lynas Corporation Limited closed up 9 cents at $1.36 and Iluka Resources fell $0.42 to $15.64.

Aquila Resources declined 17 cents to $6.83 and the coal miner received its state government approval to develop and operate a 282-km rail line to transport iron ore from its project in Pilbara region.

Oil Search Limited traded up 3 cents to $6.55, Santos Limited gained 9 cents to $13.54 and Woodside Petroleum closed up $0.53 cents to $34.19.

Commonwealth Bank of Australia closed up $0.41 to $49.96 and National Australia Bank increased 10 cents to $24.65. ANZ edged up 17 cents to $21.05. Westpac added 12 cents to $21.69.

David Jones Limited closed down 1 cent to $2.88 and Wesfarmers Limited rose 19 cents to $32.60. Harvey Norman closed down 1 cent at $2.16.

Woolworths Limited closed up 5 cents to $25.52 and James Hardie Industries SE increased 3 cents to $6.98.

Qantas Airways Ltd closed up 4 cents to $1.64, Virgin Australia closed unchanged at 35.5 cents and Flight Centre rose 1 cent to $19.48.

QBE Insurance Group Limited increased 8 cents to $14.37.