Earnings Drive Australian Markets Higher, Monadelphous Net Surges

Marcus Jacob
21 Aug, 2012
New York City

Australian stocks traded higher after the latest batch of earnings confirmed the current boom in mining industry capital spending. Monadelphous reported annual net increased 44% and steelmaker Arrium said net dropped 75%. Amcor, the packaging company said full-year net rose 18%.

[R]8:30 PM Sydney – Australian stocks traded higher after the latest batch of earnings confirmed the current boom in mining industry capital spending. Monadelphous reported annual net increased 44% and steelmaker Arrium said net dropped 75%. Amcor, the packaging company said full-year net rose 18%.[/R]

Australian stocks opened higher and accelerated gains in the next four hours of trading before trimming gains in the final hour.

Trading sentiment was driven by fresh batch of earnings and the engineering contractor Monadelphous reported 44% increase in annual earnings and guided “end in mining boom” in the near future.

The ASX 200 index edged increased 19.10 to 4,383.40 and the broader All Ordinaries gained 18.89 to 4,410.80.

The Australian dollar inched up to US$1.051 and gained a fraction against the euro and the yen.

Stock Movers

BHP Billiton Limited climbed 24 cents to $33.27 and, Rio Tinto Limited slipped 9 cents to $54.41 and Fortescue Metals Group slid 6 cents to $4.05.

Iluka Resources dropped 17 cents $10.30 and Lynas Corporation Limited down 1.5 cents to 68.5 cents.

Newcrest Mining jumped 37 cents to $25.40 and Kingsgate gained 3 cents to $4.43. Whitehaven Coal added 2 cents to $3.42.

BlueScope Steel extended loss by 3 cents to 36.5 cents after the steel maker posted a day ago another annual loss of more than $1 billion and estimated loss in the current year.

Monadelphous Group soared $1.56 or 7% to $23.26 after the engineering group reported full-year net profit increased 44.5% to $137.3 million. The latest profit increase was the eleventh yearly growth in a row. Revenues in the fiscal year ending in June increased 32% to $1.9 billion.

The second half dividend was increased to 75 cents a share from 55 cents a share a year ago.

Arruim, the steel maker previously named as OneSteel, soared 12% or 9.5 cents to 90.5 cents after latest period results plunged 75%.

Oil Search Limited lowered 3 cents to $7.16 and Santos Limited advanced 21 cents to $12.06 and Woodside Petroleum climbed 88 cents to $36. Sundance Energy slid 2.5 cents to 54.5 cents.

Amcor, the packaging company declined 6 cents to $7.66 after annual net profit for the year to June increased to $412.6 million from $356.7 million a year ago on acquisitions and rising sales in emerging markets.

Ten Network decreased 0.5 cents to 44 cents and Fairfax Media gained 1.5 cents to 57.5 cents.

Consolidated Media Holdings closed unchanged at $3.44 after it reported 15.6% decline in net profit.

Metcash added 2 cents to $3.55, Harvey Norman Holdings slid 1 cent at $2.04 and Woolworths jumped 45 cents to $29.48. Kathmandu declined 2 cents $1.36.

Commonwealth Bank of Australia closed unchanged at $55.80 after it traded ex-dividend of $1.97.

Bank of Queensland slipped 9 cents to $7.70. ANZ increased 17 cents to $24.95. National Australia Bank jumped 46 cents at $25.37 and Westpac Banking Corporation declined 10 cents to $24.87.

Macquarie Group gained 5 cents to $26.81 and Perpetual Limited climbed 50 cents to $27.65.

David Jones Limited closed unchanged at $2.56 and Wesfarmers closed unchanged at $34.71. Billabong International Limited closed down 1 cent at $1.37. Breville Group slid 1 cent to $5.16. Harvey Norman lowered 1 cent to $2.04.

Toll Holdings gained 10 cents to $4.54 and Leighton slipped 8 cents to $17.55.

Mirvac Group fell 1 cent to $1.36 after it reported annual net profit in the year more than doubled to $416.1 million from a year ago period.

Qantas up 1 cent to $1.18 and Flight Centre jumped 55 cents to $23.95 and Virgin Australia closed unchanged at 45.5 cents.

QR National added 1 cent to $3.41.

Telstra closed up 5 cents at $3.75 and the telecom operator said it plans to cut 422 full-time staff and 229 positions filled with the help of employment agencies.