Australian Markets Halt 4-Day Declines

Marcus Jacob
27 Jun, 2012
New York City

Australian stocks rebounded after losses of four days and stocks in the resource, media and banking sector led the gainers. News Corp gained on the hopes that the controversial media group may separate its maligned news division from its popular and larger entertainment unit.

[R]8:00 PM Sydney – Australian stocks rebounded after losses of four days and stocks in the resource, media and banking sector led the gainers. News Corp gained on the hopes that the controversial media group may separate its maligned news division from its popular and larger entertainment unit.[/R]

Australian stocks halted a losing streak of four days and rebounded tracking the gains in New York. Commodities prices edged higher in Asia and markets were generally positive in the region on the expectations of additional stimulus from China.

The ASX 200 index gained 29.90 to 4,043.20 and All Ordinaries index increased 29.69 to 4,084.02.

The Australian dollar rebounded to US$1.005 and struggled to hold the parity line as global economic growth prospect dim on the widening debt contagion in the euro zone.

In trading, stock turnover decreased to 1.74 billion worth $3.45 billion with 512 stocks trading higher, 498 declining and 421 were unchanged.

Stock Movers

News Corp, the controversial media conglomerate known for its aggressive tactics advanced 71 cents to $21.50 after the company confirmed that it has discussed splitting its often criticized news operation from its entertainment division.

Ten Network rose 1 cent to 51 cents and Fairfax Media added 5 cents to 55.5 cents and the company said it will not grant a board seat to its prominent shareholder Gina Rinehart.

BHP Billiton Limited fell 3 cents to $30.60 and dropped to a 3-year low, Rio Tinto Limited dropped 26 cents to $55.08.

Fortescue Metals Group slid 3 cents to $4.85.

Lynas Corporation Limited declined 6.5 cents to 82.5 cents and Iluka Resources slumped 40 cents to $10.84. Newcrest Mining plummeted 40 cents to $21.85 and Kingsgate fell 3 cents to $4.95.

Oil Search Limited gained 16 cents to $6.40 and Santos Limited slid 4 cents to $11.04 and Orica increased 12 cents to $24.55.

David Jones Limited rose 3 cents to $2.27, Harvey Norman Holdings added 3 cents to $1.90 and Woolworths advanced 23 cents to $26.75. Kathmandu fell 2 cents to $1.02.

Billabong International Limited closed unchanged at $1.02.

Commonwealth Bank of Australia advanced 45 cents to $52.15 and Bank of Queensland added 12 cents to $6.60. ANZ gained 24 cents to $21.54. National Australia Bank increased 24 cents to $23.38 and Westpac Banking Corporation rose 25 cents to $20.92. Macquarie Group gained 25 cents to $25.60.

Perpetual Limited increased 14 cents to $22.66 after the company estimated full year profit to plunge 65% on restructuring costs and will cut 580 jobs and cut the pay of its board members.

Stockland rose 3 cents to $3.15, Leighton fell 3 cents to $16.20 and Toll Holdings was unchanged to $3.91.

Qantas was unchanged to $1.08, Virgin Australia rose 5 cents at 37.5 cents and Flight Centre decreased 7 cents to $18.45.

QR National increased 9 cents to $3.40.