Australian Stocks Gain 1% on China Manufacturing Data

Marcus Jacob
22 Nov, 2012
New York City

Australian indexes gained 1% after resource stocks gained after manufacturing index expanded to the highest rate in 13-month. Goodman Fielder said it is on track to achieve its annual savings of $100 million. Lynas said its Malaysian processing plant is scheduled to reach full-capacity next month.

[R]7:30 PM Sydney – Australian indexes gained 1% after resource stocks gained after manufacturing index expanded to the highest rate in 13-month. Goodman Fielder said it is on track to achieve its annual savings of $100 million. Lynas said its Malaysian processing plant is scheduled to reach full-capacity next month.[/R]

Australian stocks and commodities closed higher on the positive economic news from China and on the hopes that the sustained demand for Australian commodities from China, India, Philippines and Vietnam will drive prices higher.

The ASX 200 index jumped 43.60 or 1% to 4,413.10 and the broader All Ordinaries advanced 41.70 to 4,432.42.

Australian dollar inched lower to $1.0382 and traded as high as $1.042 in the session after resource prices gained.

Coal prices are expected to recover in the second half of the next year and stay near US $100 a ton, according to GVK-Hancock Coal chief executive Justin Crotty.

Crotty said at a conference in Brisbane today that the recent decline in coal prices three-year low to $81 a ton in the late October is likely to change gradually in the next twelve months and slowly reach to $100 a ton.

HSBC Flash Manufacturing Purchasing Managers Index rose to a 13-month high 50.4. The index above 50 indicates that manufacturing is expanding.

Stock Movers

BHP Billiton Limited climbed 33 cents to $33.69 and Rio Tinto Limited gained 13 cents to $57.08.

Lynas Corporation Limited surged 4.5 cents or 7.1% to 67.5 cents after the company said its controversial Malaysia based process is likely to reach full capacity production next month.

Iluka Resources increased 6 cents to $7.94 and Fortescue Metals dropped 10 cents to $3.80.

Mirabela Nickel up 1 cent to 42 cents and Newcrest Mining added 3 cents to $25.33. Kingsgate declined 14 cents to $4.70 and Whitehaven Coal lowered 3 cents to $2.78.

Transfield Services gained 2 cents to $1.59 and Engineering contractors WorleyParsons increased 6 cents to $24.61.

Monadelphous Group advanced 41 cents to $21.62.

Oil Search Limited slid 3 cents to $7 and Santos Limited extended gains 11 cents to $11.05 after the company discovered gas field off the coast of Western Australia’s Kimberly region.

Woodside Petroleum increased 20 cents to $33.54 and Origin Energy Limited up 9 cents to $10.63.

Goodman Fielder gained 2 cents to 60 cents and the company guided it is on track to save $100 million annually after the restructuring completes in 2015.

The company is also set to lower its total debt load by 20% by the end of the current fiscal year and said that the recent price increase are set to be effective from December and that will have positive effect on earnings.

In August, the bakery products maker said annual loss in the year to June shrank 12% to $146.9 million from a year ago loss of $166.7 million.

Seven West Media added 4 cents to $1.55. Harvey Norman Holdings added 3 cents to $1.84.

Woolworths climbed 14 cents to $28.62 and Kathmandu added 1 cent to $1.46.

David Jones Limited up 3 cents to $2.44 and Wesfarmers jumped 56 cents to $34.94. Breville Group slumped 8 cents to $5.80.

Billabong International Limited soared 5.5 cents or 6.6% to 89 cents.

Commonwealth Bank of Australia advanced 79 cents to $58.67 and Bank of Queensland gained 11 cents to $6.95 and ANZ increased 22 cents to $23.74.

Macquarie Group jumped 32 cents to $31.10 and Perpetual Limited climbed 65 cents to $30.15. National Australia Bank slid 3 cents to $23.64. Westpac added 23 cents to $24.83.

Toll Holdings closed unchanged at $4.33, Leighton advanced 59 cents to $17.08 and property developer Mirvac Group closed unchanged at $1.46.

Westfield Group gained 3 cents to $10.42.

Qantas added 3 cents to $1.28, Flight Centre declined 22 cents to $26.45 and Virgin Australia down 0.5 cents to 45.5 cents.

QR National gained 5 cents to $3.54 and Telstra increased 8 cent to $4.27, up 28.2% in the year so far.