Australian Stocks Advance; David Jones Halted

Marcus Jacob
19 Mar, 2012
New York City

Australian markets advanced on the rising commodities prices and comments from the IMF chief. David Jones halted stock ahead of the strategic review. Qantas unions campaign to save jobs at three aircraft maintenance facilities.

[R]8:00 PM Sydney – Australian markets advanced on the rising commodities prices and comments from the IMF chief. David Jones halted stock ahead of the strategic review. Qantas unions campaign to save jobs at three aircraft maintenance facilities.[/R]

Australian stocks gained on the first day of trading and on the rising commodities prices and receding worries on the global economy after comments from the IMF chief.

The ASX 200 index increased 14.60 to 4,290.80. All Ordinaries index increased 16.50 to 4,381.21.

Christine Lagarde said on Sunday that the global economy has avoided the financial storm and there are early indications of stabilization from the euro zone and the U.S.

Stock Movers

Miners rose on the speculation that a production fault at a railroad controlled by Brazil based miner Vale may lead to global iron ore supply disruptions.

BHP Billiton Ltd increased 38 cents to $35.35 and Rio Tinto Ltd increased 73 cents to $65.85. Fortescue Metals Group increased 17 cents to $5.98.

Atlas Iron jumped 11 cents to $3.04 after the company said it restarted production at mines after a weekend of closure ahead of Cyclone Lau.

Lynas Corporation Limited fell 1 cent to $1.22 and Iluka Resources closed up 19 cents to $16.80.

Newcrest Mining decreased 64 cents to $29.66 and Kingsgate decreased 29 cents to $6.43.

Oil Search Limited rose 2 cents to $6.96, Santos Limited increased 7 cent at $14.53 and Woodside Petroleum decreased 23 cents to $34.97.

Commonwealth Bank of Australia rose 7 cents to $49.03, Westpac closed up 9 cents to $21.22 and NAB fell 3 cents to $24.15. ANZ gained 6 cents to $22.57.

Macquarie Group increased 49 cents to $28.02 and investors overlooked the latest credit view from the Moody’s.

David Jones Limited closed on Friday at $2.73 and the company asked for a two-day trading halt ahead of a board vote on its strategic plan. The retailer is scheduled to release its half-year results and strategic plan on Wednesday.

Harvey Norman Holdings closed unchanged at $1.95 and Woolworths increased 15 cents to $25.67.

Myer gained by 3 cents to $2.26 after the retailer said full year fiscal 2012 sales are likely to be flat or decline.

Real estate developers were weak and Westfield Group fell 4 cents to $8.68 and Stockland rose 3 cents to $3.11.

Qantas Airways Ltd closed up 1 cent at $1.77 and alliance of trade unions launched a campaign to save jobs at three aircraft maintenance facilities that are likely to be closed beginning as early as this year. Unions say at least 600 engineering jobs will be lost this year and 700 more next year.

Virgin Australia fell 0.5 cents at 46 cents and Flight Centre increased 7 cents to $21.80.