Australian Stocks Extend 4-day Rally; Wotif.com, Seek Ltd, Woodside Rise

Marcus Jacob
22 Feb, 2012
New York City

Australian stocks traded higher for the fourth day in a row as earnings were ahead of expectations. Seek Limited and Wotif.com Holdings reported record earnings and Woodside Petroleum reported 34% rise in adjusted profit.

[R]8:00 PM Sydney – Australian stocks traded higher for the fourth day in a row as earnings were ahead of expectations. Seek Limited and Wotif.com Holdings reported record earnings and Woodside Petroleum reported 34% rise in adjusted profit.[/R]

Australian indexes gained for the fourth day in a row and a private survey of manufacturing in China showed a contraction but still the best reading in five months.

Investors have been bidding up stocks in the last one week of trading after China relaxed bank reserves and European leaders worked out an agreement that forestalls for now the Greek default.

The ASX 200 index closed higher 1.8 to 4,293.1 and All Ordinaries index added 3.9 to 4,372.1.

The Australian dollar edged higher to close at $1.0671 and held firm after Foreign Minister Kevin Rudd resigned.

Domestic earnings were in focus after Woodside Petroleum, CSL Limited, Wotif.com Holdings and SEEK Limited reported stronger than expected earnings.

Stock Movers

Coca-Cola Amatil Limited declined 5 cents to $12.06 after the company reported full-year net profit increased 19% to $591.8 million and adjusted profit that excludes one-time gains increased 5% to $532 million. The company declared final dividend of 30.5 cents.

BHP Billiton Ltd fell 3 cents to $36.41, Rio Tinto Ltd declined 63 cents to $68.53 and Fortescue Metals Group added 2 cents to $5.54.

Lynas Corporation Limited closed down 1 cent to $1.29 and Iluka Resources increased 22 cents to $17.43. Newcrest Mining rose 75 cents to $35.85.

Oil Search Limited increased 24 cents to $6.96 and Santos Limited rose 19 cents at $14.31.

Woodside Petroleum increased 91 cents to $36.86 after the largest Australian gas and oil
company reported 34% increase in second half profit adjusted for one time charges. The company also confirmed that is on schedule to ship LNG cargo from its delayed Pluto project in March.

OneSteel Limited increased 14 cents to 95 cents and traded at a three-month high after the steel maker reported first half net loss and plans to eliminate 430 jobs.

Seek Limited increased 61 cents to $6.31 after the online jobs portal reported a record first half net. First half profit rose 27% to $60.6 million and declared interim dividend of 8.3 cents a share, an increase of 22%.

Wotif.com Holdings Limited soared 34 cents to $4.45 after the online travel portal reported record first half profit of $25 million, an increase of 14%. The company also declared an interim dividend of 11.5 cents.

Commonwealth Bank of Australia increased 17 cents to $49.64, Westpac added 11 cent to $20.77 and NAB increased 5 cents to $23.45. ANZ increased 14 cent to $22.14.

David Jones Limited increased 4 cents to $2.57 and Harvey Norman Holdings added 2 cents to $2.14. Woolworths decreased 36 cents to $24.95.

Ten Network plunged 8 cents to 78 cents after the media company lowered its profit outlook and said first half profit are expected to plunge 40% from a year ago. Television revenues are expected to fall 12% and operating earnings at the company are estimated at $64 million from $106 million a year ago period.

Ten Network also cut its interim dividend.

CSL Limited increased 77 cents to $41.72 after the blood maker revised its 2012 earnings outlook to 13% increase.

Qantas Airways Ltd fell 1 cent to $1.66, Virgin Australia closed up 0.5 cent at 36.5 cents and Flight Centre decreased 5 cents to $21.45.

QR National closed unchanged at $3.93.