Australian Indexes Up 1%, Harvey Norman Estimates Sharp Earnings Fall

Marcus Jacob
06 Aug, 2012
New York City

Australian markets traded higher following a surge in Friday

[R]7:30 PM Sydney – Australian markets traded higher following a surge in Friday’s trading in New York and in Europe. Commodities gained in Asian trading and the dollar held firm against the U.S. dollar. Harvey Norman estimated a 40% decline in annual net. Fortescue Metals arranged short term $1.5 billion loan.[/R]

Australian stocks traded higher following strong market advance in New York and in Europe after better than expected monthly net job additions in the U.S.

The better than expected net monthly job gains of 163,000 in July lifted market indexes in New York and accelerated the gains in Europe.

At close of Friday, markets in Europe soared as much as 6% on the hopes that the European leaders are working on a plan to facilitate the next round of bond purchase in coordination with the European Central Bank.

The ASX 200 index increased 51.10 or 1.2% to 4,272.60 and All Ordinaries index gained 49.89 or 1.2% to 4,292.92.

The Australian dollar closed higher at US$1.058.

In trading, turnover dropped to 1.25 billion shares worth $2.27 billion and 559 shares increased, 329 decreased and 350 were unchanged.

Stock Movers

BHP Billiton Limited advanced 70 cents to $32 and, Rio Tinto Limited climbed $2.12 to $54.13 and Fortescue Metals Group rose 8 cents to $4.26.

Fortescue said it arranged a short term loan of US$1.5 billion in loans to pay for the cost overruns at its flagship Pilbara region mine in Western Australia.

Integra Mines soared to 27% or 8.5 cents to 40 cents after it agreed to be acquired gold miner Silver Lake Resources.

Iluka Resources increased 26 cents $9, Lynas Corporation Limited fell 2 cents to 76.5 cents, Newcrest Mining gained 48 cents to $23.56 and Kingsgate added 10 cents to $4.06. Whitehaven Coal closed up 11 cents at $3.66.

Aquarius Platinum rose 1 cent to 51 cents after three people died and at least 20 were injured in an accident at its production location in South Africa.

Oil Search Limited added 9 cents to $7.09, Santos Limited increased 15 cents to $10.79 and Woodside Petroleum gained 12 cents to $34.05. Sundance Energy closed up 1.5 cents at 41 cents.

Ten Network rose 2 cents to 46 cents and Fairfax Media inched up 0.5 cents to 52 cents.

Consolidated Media Holdings fell 1 cent to $3.43 after competition authority approved the offer from News Corporation.

Metcash added 4 cents to $3.44, Harvey Norman Holdings closed unchanged at $1.98 and Woolworths increased 23 cents to $28.88. Kathmandu closed unchanged at $1.25.

Argo added 6 cents to $5.44 after the investment company said full-year net decreased 2.8% to $167.3 million.

Commonwealth Bank of Australia advanced 40 cents to $56.38 and Bank of Queensland gained 11 cent to $7.70. ANZ increased 22 cents to $23.56. National Australia Bank rose 17 cents at $25.16 and Westpac Banking Corporation increased 15 cents to $23.45.

Macquarie Group gained 39 cents to $25.15 and Perpetual Limited advanced 45 cents to $24.33.

David Jones Limited rose 3 cents to $2.41 and Wesfarmers gained 34 cents to $32.40. Billabong International Limited closed unchanged at $1.39. Breville Group added 6 cents to close at $4.95.

Harvey Norman edged lower 0.5 cents to $1.975 after it said full-year profit may plunge 40% and sales are expected to decline 7% in the fiscal year ending in June.

Leighton advanced 73 cents or 4.6% to $16.73, Stockland rose 2 cents to $3.40 and Toll Holdings added 5 cents to $4.12.

Qantas up 1 cent to $1.11, Flight Centre gained 60 cents to $22.27 and Virgin Australia raised 1 cent 41.5 cents.

QR National added 4 cents to $3.26.