Australian Stocks Higher, James Hardie Returns to Profit on Tax Win

Marcus Jacob
21 May, 2012
New York City

Australian stocks rebounded and closed higher after G8 leaders urged Greece to stay in the currency union and honor its financial commitment. James Hardie returned to profitability on one-time tax gain. Resource stocks closed higher.

[R]8:00 PM Sydney – Australian stocks rebounded and closed higher after G8 leaders urged Greece to stay in the currency union and honor its financial commitment. James Hardie returned to profitability on one-time tax gain. Resource stocks closed higher.[/R]

Australian stocks closed higher in a listless trading as G8 leaders at a weekend meeting urged Greece to stay in the euro zone and also asked the debt laden nation to honor its financial commitment to international lenders.

The ASX 200 index gained 27.10 to 4,073.60 and All Ordinaries index increased 25.59 or to 4,124.44.

The Australian dollar rebounded from the low of the year to 98.5 U.S. cents.

Stock Movers

James Hardie Industries pared early gains to 2 cents to $6.95 after the company announced that it will buy back up to 5% of its shares and announced a decline in fourth quarter operating profit.

Building products maker posted a net profit of US$604.3 million for the year ending in March compared to a loss of US$347 million in the year ago and sales in the year increased 6% to US$1.24 billion.

The results were boosted after the company won a legal case against the taxation authority and won US$485.2 million.

David Jones Limited rose 3 cents to $2.23, Harvey Norman Holdings closed up at 1 cent to $1.94 and Woolworths increased 14 cents to $26.82.

Myer edged down 1 cent to $2.14 and Kathmandu unchanged to $1.20. Billabong International Limited added 2 cents to $2.12.

BHP Billiton soared 64 to $32.10 and Rio Tinto surged 75 cents to $55.95.

Toro Energy soared 10% after West Australia’s environmental agency approved the company for its uranium mining project in the state.

Lynas Corporation Limited inched up 1.5 cents to 90 cents and Iluka Resources advanced 60 cents to $12.78. Newcrest Mining gained 47 cents to $25.50 and Kingsgate fell 6 cents to $5.05.

Elders decreased 0.5 cent to 40 cents after the company said its recent tax win helped the company to return to profitability.

Revenues in the first half to March decreased 1% to $1.07 billion and first half net was $40.5 million on $34.4 million tax win. Excluding the tax gain, underlying profit was $6.1 million compared to $7.5 million in the period a year ago.

Oil Search Limited increased 13 cents to $6.72 and Santos Limited added 4 cents to $12.0. Orica gained 5 cents to $25.24.

Commonwealth Bank of Australia increased 24 cents to $49.64, Bank of Queensland advanced 15 cents to $6.30. ANZ increased 8 cents to $20.92. National Australia Bank soared 28 cents to $23.60 and Westpac Banking Corporation gained 20 cents to $20.61.

Stockland fell 1 cent to $3.15, Leighton soared 49 cents to $17.29 and Toll Holdings decreased 4 cents to $4.27.

Qantas closed unchanged at $1.43 and the airline said it will cut 500 positions, Virgin Australia unchanged to 42 cents and Flight Centre declined 22 cents to $18.41.

QR National edged up 1 cent to $3.30.