Australian Stocks Advance on Earnings Optimism

Marcus Jacob
10 Jan, 2012
New York City

Australian stocks advanced on the earnings optimism in the resource sector and residential buildings approvals increased 8.4% in November. Pacific Brands soared 14% after it received unsolicited takeover offer from the U.S. based leveraged buyout firm KKR.

[R]8:00 PM Sydney – Australian stocks advanced on the earnings optimism in the resource sector and residential buildings approvals increased 8.4% in November. Pacific Brands soared 14% after it received unsolicited takeover offer from the U.S. based leveraged buyout firm KKR.[/R]

Australian stocks traded higher led my miners and resources companies on the earnings optimism. Before the market opening, the U.S. based Alcoa reported earnings that met expectations.

The ASX 200 index closed up 46.80 or 1.1% to 4,152.2 and All Ordinaries index increased 45.1 or 1.1% to 4,206.6.

The Australian dollar edged lower and closed at US$1.017.

Australian residential building approvals surged 8.4% to 11,424 units in November indicating strong demand. The approvals were higher than the expected increase of 6%.

Only yesterday, the industry association of home builders said, new home sales rose 6.8% in November from the downwardly revised 2.8% increase in October. Single family home sales soared 9.8% and apartment sales dropped 17% in the month.

Stock Movers

BHP Billiton Ltd rose 46 cents to $35.66 and Rio Tinto Ltd increased $1.05 to $63.20.

Fortescue Metals Group rose 11 cents to $4.57, Lynas Corporation Limited closed up 1 cent to $1.03 and Iluka Resources rose 68 cents to $16.09. Newcrest gained 73 cents to $32.18.

Oil Search Limited traded up 7 cent to $6.45, Santos Limited rose 38 cents to $12.63 and Woodside Petroleum increased $0.45 cents to $31.42.

Commonwealth Bank of Australia increased 38 cents to $49.78 and National Australia Bank rose 13 cents to $23.50. ANZ edged up 21 cents to $20.75. Westpac inched higher 21 cents to $20.20.

David Jones Limited closed up 3 cents to $2.40 and Wesfarmers Limited increased 24 cent to $30.64. Harvey Norman Holdings closed up 6 cents to $1.92.

Pacific Brands increased 8 cents or 14.3% to 64 cents after the troubled clothing maker said it received an unsolicited takeover offer from the U.S. based leveraged buyout group KKR.

Woolworths Limited closed up at $25.50 and JB Hi-Fi Limited increased $0.39 to $11.63. Billabong International Ltd fell 2 cents to $1.80 and Kathmandu rose 3 cents to $1.29.

Qantas Airways Ltd closed up at 8 cents to $1.55, Virgin Australia closed up 0.5 cent to 30 cents and Flight Centre closed up 36 cents to $16.93.

QBE Insurance Group Limited increased 10 cents to $13.15 and Insurance Australia Group increased 6 cents to $2.97.

QR National fell 2 cents to $3.52.