Australian Indexes Jump 1%; Retailers in Focus

Marcus Jacob
03 Jan, 2012
New York City

Australian stocks opened higher on the back of rising commodities prices and firm Asian markets. Australian retail sales are expected to rise 2.4% in the three weeks to mid-January.

[R]8:00 PM Sydney – Australian stocks opened higher on the back of rising commodities prices and firm Asian markets. Australian retail sales are expected to rise 2.4% in the three weeks to mid-January.[/R]

Australian stocks opened higher on the back of better than expected China’s manufacturing data and rising energy prices.

Australian retail sales are expected to rise 2.4% in the three weeks between Dec 26 and mid-January to $14.1 billion, according to Russell Zimmerman, executive director of the industry association. Excluding food, store sales are expected to increase 2.3% to $6.6 billion.

Another survey conducted by CommSec suggested that online spending soared 37% in 2011 to $12.3 billion adding up to 4.9% of total retail sales or 8.1% of discretionary retail spending.

The ASX 200 index closed up 44.60 or 1.1% to 4,101.2 and All Ordinaries index increased 44.2 or 1.1% to 4,155.2.

Trading volume declined to 828 million shares worth $1.8 billion as institutional investors stayed on the sideline ahead.

The Australian dollar edged higher and closed at US$1.030.

Stock Movers

BHP Billiton Ltd rose 38 cents to $34.80 and Rio Tinto Ltd increased $1.10 to $61.40.

Fortescue Metals Group increased 14 cents to $4.41, Lynas Corporation Limited closed up 5 cent to $1.09 and Iluka Resources added $0.05 to $15.78.

Gloucester Coal increased 10 cents to $8.70 after the company said it will wait to recommend the $2 billion offer from China based Yanzhou Coal Mining Co till the company completes its due diligence.

Oil Search Limited traded up 6 cents to $6.31, Santos Limited added 10 cents to $12.34 and Woodside Petroleum increased $0.07 cents to $30.69.

Commonwealth Bank of Australia increased 39 cents to $49.61 and National Australia Bank rose 40 cents to $23.76. ANZ edged up 15 cents to $20.68. Westpac inched higher 16 cents to $20.16.

Cochlear rose $0.20 to $62.20 and traded near one month high as the company prepares to reintroduce its two recalled hearing aids products as early as this month.

David Jones Limited closed down 5 cents to $2.32 and Wesfarmers Limited increased 26 cent to $29.76. Harvey Norman Holdings closed down 2 cents to $1.82.

Woolworths Limited closed up 11 cents to $25.21 and JB Hi-Fi Limited increased $0.32 to $11.61.

Centro Retail jumped 6% to $1.82 after the company named Steven Sewell as chief executive officer.

Billabong International Ltd rose 3 cents to $1.80 and Kathmandu eased 1 cent to $1.29.

Qantas Airways Ltd closed up 2 cents to $1.48, Virgin Australia closed up 0.5 cent to 29 cents and Flight Centre added $0.42 to $16.54.

QBE Insurance Group Limited increased 3 cents to $12.98 and QR National added 8 cents to $3.50.