Australian Stocks Advance; QBE Plunges 5%, ANZ Up 3%

Marcus Jacob
17 Aug, 2012
New York City

Australian markets indexes surged 0.9% on stronger local earnings and improving sentiment in the euro zone. ANZ reported first half profit increased 9%. QBE net surged but stock dropped on weaker outlook in the U.S.

[R]8:30 PM Sydney – Australian markets indexes surged 0.9% on stronger local earnings and improving sentiment in the euro zone. ANZ reported first half profit increased 9%. QBE net surged but stock dropped on weaker outlook in the U.S.[/R]

Australian indexes traded higher following the gains in international markets after comments from German Chancellor Angela Merkel and on the release of positive earnings from domestic companies.

German Chancellor Angela Merkel appeared to back central bank efforts in reviving the euro zone economy and also seem to be ready to relax some austerity measures for Greece.

Locally, QBE and ANZ reported higher earnings and contributed to the general rising market sentiment.

The ASX 200 index increased 39.90 or 0.9% to 4,370.10 and the broader All Ordinaries gained 40.31 or 0.9% to 4,393.82. For the week, the ASX 200 index gained 2.2%.

The Australian dollar eased to US$1.042 and fell against the euro, the pound and the yen.

Stock Movers

QBE Insurance plunged as much as 11% to $12.15 after the company reported profit in the first half to June rose to $760 million from $673 million a year ago period.

Revenues declined 2% to US$8.9 billion, gross written premiums increased 3% to US$9.2 billion and net premium increased 9% to US$7.3 billion.

The stock plunged on the worries that the recent drought in the U.S. and lower level of foreclosures will reduce its North American gross premium by US$360 million.

BHP Billiton Limited increased 12 cents to $33 and, Rio Tinto Limited jumped 60 cents to $55.35 and Fortescue Metals Group gained 8 cents to $4.20.

Iluka Resources advanced 23 cents $10.87 and Lynas Corporation Limited lowered 1.5 cent to 75 cents.

Newcrest Mining climbed 69 cents to $25.20 and Kingsgate soared 27 cents or 6.6% to $4.38. Whitehaven Coal slipped 11 cents to $3.59.

Oil Search Limited gained 6 cents to $7.21 and Santos Limited increased 36 cents to $11.78 and Woodside Petroleum added 9 cents to $34.91. Sundance Energy rose 2 cents to 50.5 cents.

Ten Network closed unchanged at 45 cents and Fairfax Media up 0.5 cent to 56 cents.

Consolidated Media Holdings closed unchanged at $3.45 after competition authority approved the offer from News Corporation.

Metcash slid 1 cent to $3.49, Harvey Norman Holdings gained 3 cents at $2.06 and Woolworths jumped 30 cents to $28.90. Kathmandu grew 2 cents $1.36.

Commonwealth Bank of Australia increased 30 cents to $57.35 and Bank of Queensland added 4 cents to $7.79. ANZ jumped 71 cents to $24.61. National Australia Bank increased 13 cents at $24.63 and Westpac Banking Corporation climbed 38 cents to $24.50.

ANZ gained after the bank reported 9% increase third quarter profit to $1.53 billion and for nine-months surged 10.3% to $4.4 billion. Earnings rose after impaired assets declined $117 million and loan loss provision ratio was at 1.18%.

The bank also said customer deposits in the quarter increased 8.7% and loans advanced 7.7%. ANZ also guided loan loss in the current year to match the losses in the previous year and said it has frozen salaries of executives and plans to cut 1,000 staff.

Macquarie Group increased 24 cents to $26.54 and Perpetual Limited advanced $1.16 to $27.70.

AMP added 3 cents to $4.39 after the company said first half profit increased 7% after its merger with AXA Asia Pacific.

David Jones Limited fell 1 cent to $2.55 and Wesfarmers climbed 95 cents to $34.67. Billabong International Limited closed unchanged at $1.38. Breville Group added 1 cent to $5.11. Harvey Norman gained 3 cents to $2.06.

Dexus Property Group slid 0.5 cents to 96.5 cents after it reported full-year net income declined 67% and guided an increase in profit in the current fiscal year.

Toll Holdings closed unchanged at $4.48 and Leighton increased 17 cents to $17.70.

Brambles gained 7 cents to $6.55 after annual profits increased 21%.

Qantas up 1 cent to $1.16 and Flight Centre closed unchanged at $23.32 and Virgin Australia added 0.5 cents 46 cents.

QR National closed unchanged at $3.35.