Miners Lift Australian Indexes 2%

Marcus Jacob
04 Jan, 2012
New York City

Australian stocks gained 2% and extended advance for the second day in a row as commodities prices increased and world economic data pointed to higher manufacturing activities. Oil rallied in Europe and in New York on the rising tensions in the Middle East. Gold jumped 2%.

[R]8:00 PM Sydney – Australian stocks gained 2% and extended advance for the second day in a row as commodities prices increased and world economic data pointed to higher manufacturing activities. Oil rallied in Europe and in New York on the rising tensions in the Middle East. Gold jumped 2%.[/R]

Australian stocks surged after global economic data pointed to higher manufacturing activities in China, India, U.S. and Australia. Investors also cited the fall in unemployment in Germany.

Stocks in resource sector gained after copper, gold and energy prices climbed. Oil prices rose after tensions in the Middle East remained high after U.S. and Iran prepared for a possible conflict that may block as much as 80% of crude oil flowing from the region.

The ASX 200 index closed up 86.60 or 2.1% to 4,187.8 and All Ordinaries index increased 84.3 or 2% to 4,239.5.

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

Stock Movers

BHP Billiton Ltd rose $1.42 to $36.22 and Rio Tinto Ltd increased $1.75 to $63.15.

Fortescue Metals Group added 21 cents to $4.62, Lynas Corporation Limited closed up 2 cent to $1.12 and Iluka Resources added $0.07 to $15.85.

Oil Search Limited traded up 10 cents to $6.41, Santos Limited added 31 cents to $12.65 and Woodside Petroleum increased $0.71 cents to $31.40.

Commonwealth Bank of Australia increased 38 cents to $49.99 and National Australia Bank rose 44 cents to $24.20. ANZ edged up 34 cents to $21.02. Westpac inched higher 33 cents to $20.49.

Cochlear fell $0.23 to $61.97.

David Jones Limited closed up 8 cents to $2.40 and Wesfarmers Limited increased 99 cent to $30.75. Harvey Norman Holdings closed up 6 cents to $1.88.

Woolworths Limited closed up 50 cents to $25.71 and JB Hi-Fi Limited decreased $0.11 to $11.50. Billabong International Ltd rose 4 cents to $1.84 and Kathmandu added 2 cents to $1.32.

Qantas Airways Ltd closed up 6 cents to $1.54, Virgin Australia closed up 1 cent to 30 cents and Flight Centre added $0.30 to $16.84.

QBE Insurance Group Limited increased 34 cents to $13.32 and Insurance Australia Group increased 2 cents to $3.05 and the company said it attracted $4.7 billion of reinsurance in 2012, 20% increase from $4.1 billion in 2011.

QR National added 6 cents to $3.56.