Australian Index Jumps 0.7%, CSL Lifts Profit Outlook

Marcus Jacob
27 Nov, 2012
New York City

Australian stocks edged higher after euro zone ministers struck a bargain that included a package of incentives and conditions to release the next tranche of bailout funds for Greece. Former chiefs of Qantas enter in talks with pilots to gain control. CSL lifted its annual net outlook by 20%.

[R]7:30 PM Sydney – Australian stocks edged higher after euro zone ministers struck a bargain that included a package of incentives and conditions to release the next tranche of bailout funds for Greece. Former chiefs of Qantas enter in talks with pilots to gain control. CSL lifted its annual net outlook by 20%.[/R]

Australian market indexes gained after euro zone ministers agreed on terms of the next bailout tranche release.

The latest agreement will be approved by ministers on December 13 after lawmakers in Germany, France, Holland and Finland endorse the deal struck after 12 hours of negotiations.

The deal will lower Greek debt by more than 40 billion euros and reduce debt load of the government to 110% by 2022 and central banks of euro zone nations will hand over 11 billion euros of profits earned from the gain in Greek debt securities in the recent months.

The political will to support the euro and Greece also resolved the growing worries that Greece will be forced out of the currency union and at least for now put markets around the world at ease.

The benchmark ASX 200 index closed marginally higher after trading in a tight range and the dollar gained a fraction.

The ASX 200 index climbed 32.60 to 4,456.80 and the broader All Ordinaries advanced 29.84 to 4,473.39.

Australian dollar inched higher to $1.046.

Stock Movers

Hong Kong based mobile payment gateway operator TTG Mobile jumped 50% to 90 cents after it placed successfully 0.6% of shares in a public offering and raised $2.4 million. The company plans to sell more shares in the next two years.

CSL soared 7% to $50.01 after the blood maker revised its profit outlook by 20% on stronger sales and higher royalties from cervical cancer vaccine Gardasil.

BHP Billiton Limited increased 19 cents to $34.20 and Rio Tinto Limited jumped 57 cents to $57.78.

Lynas Corporation Limited added 1 cent to 71.5 cents, Iluka Resources surged 63 cents or 8% to $8.50 and Fortescue Metals gained 5 cents to $3.85.

Mirabela Nickel increased 0.5 cents to 44 cents and Newcrest Mining added 5 cents to $25.80. Kingsgate advanced 14 cents to $4.88 and Whitehaven Coal closed unchanged at $2.86.

Transfield Services up 1 cent to $1.67 and engineering contractors WorleyParsons jumped 33 cents to $24.77.

Monadelphous Group increased 9 cents to $21.89.

Oil Search Limited added 1 cent to $7.02 and Santos Limited gained 4 cents to $11.14.

Woodside Petroleum slipped 14 cents to $33.68 and Origin Energy Limited increased 11 cents to $10.71.

Seven West Media closed unchanged at $1.64. Harvey Norman Holdings slid 1 cent to $1.83.

Woolworths advanced 20 cents to $28.75 and Kathmandu up 1 cent to $1.45.

David Jones Limited gained 5 cents to $2.47 and Wesfarmers added 2 cents to $35.04. Breville Group added 1 cent to $5.87.

Billabong International Limited slid 2.5 cents to 93.5 cents.

Commonwealth Bank of Australia increased 7 cents to $59.22 and Bank of Queensland slipped 7 cents to $6.90 and ANZ climbed 24 cents to $23.81.

Macquarie Group jumped 23 cents to $31.38 and Perpetual Limited advanced 42 cents to $30.78. National Australia Bank increased 13 cents to $23.83. Westpac gained 13 cents to $24.89.

Toll Holdings up 2 cents to $4.41, Leighton climbed 30 cents to $17.55 and property developer Mirvac Group added 1 cent to $1.49.

Westfield Group closed unchanged at $10.42.

Qantas gained 3 cents to $1.34 after a group of investors including former CEO Geoff Dixon and finance chief Peter Gregg initiated talks with pilots to seek alternative growth strategy differing from the current management direction.

Flight Centre jumped 86 cents to $27.41 and Virgin Australia slumped 1.5 cents to 44 cents.

QR National increased 6 cents to $3.63 and Telstra advanced 7 cents to $4.29.