Resource Prices Lift Australian Markets, Billabong in Play Again

Marcus Jacob
19 Nov, 2012
New York City

Australian market indexes and the dollar closed higher after resource prices increased. Billabong

[R]7:30 PM Sydney – Australian market indexes and the dollar closed higher after resource prices increased. Billabong’s U.S. head of business is looking to make an offer for the company with the help of private equity funds.[/R]

Australian stocks traded higher led by the resource sector after commodities prices rose and conflict raged on in the Middle East after Israel targeted civilian locations controlled by Hamas in Gaza.

The ASX 200 index increased 24.60 or 0.6% to 4,361.40 and the broader All Ordinaries gained 22.48 to 4,382.62.

Market sentiment was improving after the U.S. lawmakers showed willingness to be flexible and compromise on ideological differences to avoid the upcoming automatic spending cuts and tax increase from Jan 1.

Australian dollar inched higher to $1.0412.

Stock Movers

BHP Billiton Limited advanced 28 cents to $33.21 and Rio Tinto Limited slipped 19 cents to $56.71.

Lynas Corporation Limited surged 14.4% or 8 cents to 63.5 cents. Iluka Resources declined 28 cents to $7.51 and Fortescue Metals lowered 5 cents to $3.85.

Mirabela Nickel up 2 cents to 39.5 cents and Newcrest Mining climbed 43 cents to $25. Kingsgate increased 6 cents to $4.82 and Whitehaven Coal closed unchanged at $2.74.

Transfield Services added 2 cents to $1.57.

Engineering contractors WorleyParsons jumped 29 cents to $24.35 and Monadelphous Group advanced 22 cents to $20.26.

Oil Search Limited gained 17 cents to $7.03 and Santos Limited climbed 42 cents to $11.30 after the company discovered gas field off the coast of Western Australia’s Kimberly region.

Woodside Petroleum increased 35 cents to $33.56 and Origin Energy Limited jumped 41 cents or 4.2% to $10.25.

Seven West Media added 3 cents to $1.47. Harvey Norman Holdings up 1 cent to $1.80.

Woolworths increased 23 cents to $28.34 and Kathmandu advanced 6 cent or 4.3% to $1.47.

David Jones Limited added 1 cent to $2.55 and Wesfarmers down 1 cent to $34. Breville Group gained 8 cents to $5.88.

Billabong International Limited soared 7.5 cents or 10.1 to 81.5 cents after the head of its U.S. business Paul Naude stepped aside to work with private equity funds to make an offer for the company.

Commonwealth Bank of Australia slumped 13 cents to $58.15 and Bank of Queensland added 3 cents to $6.85 and ANZ lowered 1 cent to $23.65.

Macquarie Group declined 17 cents to $30.33 and Perpetual Limited increased 29 cents to $28.75. National Australia Bank gained 16 cents to $23.36. Westpac fell 2 cents to $24.40.

Toll Holdings down 1 cent to $4.27, Leighton advanced 26 cents to $16.66 and property developer Mirvac Group up 1 cent to $1.46.

Westfield Group added 3 cents to $10.42.

Qantas gained 2 cents to $1.27, Flight Centre dropped 20 cents to $27.48 and Virgin Australia up 1 cent to 49.5 cents.

QR National slid 1 cent to $3.50 and Telstra increased 5 cents to $4.17.