Australian Stocks in 3-Day Rally, Rio Tinto Earnings Drop

Marcus Jacob
08 Aug, 2012
New York City

Australian stock trading was driven by the local earnings news and investors also pinned hopes on economic stimulus in the U.S. and Europe. Rio Tinto reported a decline in earnings as iron ore price began to slide. Telstra and Tabcorp scheduled to release earnings tomorrow.

[R]7:30 PM Sydney – Australian stock trading was driven by the local earnings news and investors also pinned hopes on economic stimulus in the U.S. and Europe. Rio Tinto reported a decline in earnings as iron ore price began to slide. Telstra and Tabcorp scheduled to release earnings tomorrow.[/R]

Australian markets advanced for the third day in a row on the hopes that European leaders and world central banks are likely to provide additional economic stimulus.

However, earnings dominated trading sentiment. Telstra declined ahead of earnings release tomorrow and Tabcorp was in focus ahead of the release.

The ASX 200 index increased 21 to 4,312.60 and All Ordinaries index gained 21.54 to 4,332.90.

The Australian dollar closed higher at US$1.056 and traded as high as $1.062.

In trading, turnover increased to 1.54 billion shares worth $4.4 billion and 526 shares increased, 360 decreased and 356 were unchanged.

Stock Movers

Cochlear declined 49 cents to $62.51 and extended losses for the second day after it estimated a sharp decline in earnings.

Leighton decreased 6 cents to $16.42 after it reported weak first half profit.

Bradken, the mining equipment maker, increased 24 cents to $5.98 after it reported 49% increase in net profit to $100.5 million.

BHP Billiton Limited gained 12 cents to $32.28 and, Rio Tinto Limited rose 4 cents to $54.89 and Fortescue Metals Group increased 12 cents to $4.52.

The second largest Australian miner Rio Tinto reported first-half total revenue declined to $25.34 billion from $29.06 billion in the previous year. Net earnings dropped 22% to $5.89 billion from $7.59 billion and underlying profit dropped to $5.2 billion on a comparable basis.

Iluka Resources increased 28 cents $9.57, Lynas Corporation Limited rose 2 cents to 77 cents, Newcrest Mining advanced 50 cents to $24.40 and Kingsgate slid 7 cents to $4.04. Whitehaven Coal fell 5 cents to $3.80.

Oil Search Limited closed unchanged at $7.07, Santos Limited added 13 cents to $11.16 and Woodside Petroleum rose 8 cents to $34.20. Sundance Energy closed up 0.5 cents at 41.5 cents.

Transurban declined 25 cents to $5.69 and extended losses for the second day after it reported full-year net income declined 51%.

Ansell gained 15 cents to $13.69 a day after the condom maker agreed to acquire Comasec SAS for $118 million.

Ten Network fell 1 cent to 45 cents and Fairfax Media up 0.5 cents to 52 cents.

Consolidated Media Holdings rose 1 cent to $3.44 after competition authority approved the offer from News Corporation.

Metcash added 2 cents to $3.43, Harvey Norman Holdings closed down 3 cents to $1.90 and Woolworths advanced 36 cents to $29.06. Kathmandu rose 3 cents to $1.30.

Commonwealth Bank of Australia advanced 77 cents to $57.59 and Bank of Queensland up 5 cents to $7.74. ANZ rose 9 cents to $23.75. National Australia Bank gained 32 cents at $25.62 and Westpac Banking Corporation increased 45 cents to $24.13.

Macquarie Group gained 36 cents to $25.65 and Perpetual Limited advanced 78 cents to $25.15.

David Jones Limited added 6 cents to $2.46 and Wesfarmers increased 17 cents to $32.73. Billabong International Limited edged up 1 cent to $1.40. Breville Group rose 4 cents to $5.04.

Harvey Norman slid 3 cents to $1.90 after it said full-year profit may plunge 40% and sales are expected to decline 7% in the fiscal year ending in June.

Stockland declined 17 cents or 5% to $3.24 after the outgoing managing director Matthew Quinn said current housing market conditions are the worst in two decades.

Toll Holdings added 4 cents to $4.23 and Leighton decreased 6 cents to $16.42.

Qantas rose 1 cent to $1.15 and Flight Centre increased 48 cents to $22.68 and Virgin Australia up 0.5 cents 42.5 cents.

QR National gained 6 cents to $3.32.