Australian Markets Extend Gains on German Data

Marcus Jacob
12 Dec, 2012
New York City

Australian indexes extended gains for the second day on the rising iron ore prices and improving international economic sentiment. The latest German business confidence improvement added to positive momentum after China reported a rise in retail sales and industrial production.

[R]7:30 PM Sydney – Australian indexes extended gains for the second day on the rising iron ore prices and improving international economic sentiment. The latest German business confidence improvement added to positive momentum after China reported a rise in retail sales and industrial production.[/R]

Australian markets extended gains after international market sentiment improved after the release of German business confidence index and the continued rise in iron ore prices.

The Australian dollar jumped and market indexes advanced and the benchmark index gained 12% in the year so far. BHP Billiton was in focus after the company struck a deal to sell its stake in Browse LNG field to Chinas based companies.

The ASX 200 index gained 7.80 to 4,583.80 and the broader All Ordinaries increased 10.52 to 4,591.84.

Australian dollar inched higher to $1.052.

Stock Movers

BHP Billiton Limited advanced 35 cents to $35.76 and Rio Tinto Limited climbed 43 cents to $62.20.

BHP Billiton Ltd. agreed to a $1.63 billion deal with PetroChina International Investment (Australia) Pty Ltd to sell its stake in the Browse gas project in Western Australia.

PetroChina will acquire 8.33% interest in the East Browse Joint Venture and 20% interest in the West Browse Joint Venture offshore Western Australia

Linc Energy extended gains for the second day by 25% after rising 17% on Tuesday on the news that the company is in talks with Russian billionaire Roman Abramovich.

Lynas Corporation Limited slid 0.5 cents to 60 cents; Iluka Resources closed unchanged at $8.64 and Fortescue Metals gained 7 cents to $4.28.

Mirabela Nickel added 2 cents to 46.5 cents and Newcrest Mining declined 36 cents to $23.74. Kingsgate down 1 cent to $4.74 and Whitehaven Coal increased 9 cents to $3.24.

Transfield Services up 1 cent to $1.78 and engineering contractors WorleyParsons jumped 66 cents to $22.97.

Monadelphous Group increased 7 cents to $22.35. Downer EDI advanced 16 cents to $3.81 after the company agreed to a settlement of S$50 million for a tunnel dispute in Singapore.

Lend Lease decreased 8 cents to $8.95.

Oil Search Limited added 2 cents to $7.22 and Santos Limited up 7 cent to $11.13.

Woodside Petroleum climbed 55 cents to $34.45 and Origin Energy Limited gained 5 cents to $11.25.

Seven West Media added 1 cent to $1.59. Harvey Norman Holdings up 1 cent to $1.83.

Coca-Cola Amatil declined 2.6% to $13.55 after the company estimated lower than expected earnings increase of 5% increase in 2012.

Woolworths increased 21 cents to $29.83 and Kathmandu closed unchanged at $1.55.

David Jones Limited gained 3 cents to $2.50 and Wesfarmers closed unchanged at $36.28. Breville Group jumped 25 cents or 4% to $6.45.

Billabong International Limited added 2 cents to 93 cents.

Commonwealth Bank of Australia slipped 9 cents to $61.20 and Bank of Queensland increased 8 cents to $7.23 and ANZ declined 19 cents to $24.70.

Macquarie Group slumped 11 cents to $33.57 and Perpetual Limited jumped 85 cents to $33.40. National Australia Bank slipped 4 cents to $24.66. Westpac lowered 10 cents to $25.90.

Toll Holdings up 2 cents to $4.66, Leighton increased 17 cents to $16.83 and property developer Mirvac Group down 1 cent to $1.51.

Westfield Group decreased 8 cents to $10.58.

Qantas closed unchanged at $1.39, Flight Centre climbed $1.08 or 4.3% to $26.13 and Virgin Australia up 1 cent to 43.5 cents.

Telstra slipped 6 cents to $4.28.