Resource Stocks Drive Australian Rally in Third Day

Marcus Jacob
28 Dec, 2012
New York City

Australian stocks extended gain for the third day in a row after resource stocks rallied for the second day. Iron ore prices traded at a 8-month high as demand from China rebounds. Australian dollar drops to a 2-month low.

[R]7:30 PM Sydney – Australian stocks extended gain for the third day in a row after resource stocks rallied for the second day. Iron ore prices traded at a 8-month high as demand from China rebounds. Australian dollar drops to a 2-month low.[/R]

Stocks in Sydney traded higher and extended gains for the third day on a rally in resource sector.

Iron ore prices in the spot market increased to a 8-month high of $139.40 a ton, fourth monthly price increase in a row.

The ASX 200 index increased 23.30 or 0.5% to 4,671.30 and the broader All Ordinaries gained 23.85 to 4,685.27.

For the week, the ASX 200 index climbed 1.9% and the index closed at a high not seen since June 2, 2011.

Australian dollar backed off from its 3-month high to $1.0387 and traded near a 2-month low.

In stock trading, turnover increased to 874.5 million shares worth $1.53 billion.

Stock Movers

BHP Billiton Limited climbed 41 cents to $37.40 and Rio Tinto Limited jumped $1.08 to $66.53. Fortescue Metals increased 11 cents to $4.64.

Newcrest Mining slid 1 cent to $22.51. Kingsgate increased 7 cents to $4.43 and Whitehaven Coal added 2 cents to $3.53.

Transfield Services up 1 cent to $1.92 and engineering contractors WorleyParsons gained 13 cents to $23.84.

Monadelphous Group slipped 8 cents to $24.32 and Downer EDI increased 5 cents to $4.

Lend Lease jumped 9 cents to $9.29.

Oil Search Limited up 4 cents to $7.02 and Santos Limited gained 10 cents to $11.10.

Woodside Petroleum climbed 16 cents to $34.19 and Origin Energy Limited added 3 cents to $11.68.

Woolworths slumped 4 cents to $29.46 and Kathmandu slid 1 cent to $1.58.

David Jones Limited added 2 cents to $2.43 and Wesfarmers gained 4 cents to $36.89. Breville Group surged 57 cents or 8.9% to $7.

Commonwealth Bank of Australia increased 13 cents to $62.25 and Bank of Queensland added 4 cents to $7.40 and ANZ gained 9 cents to $25. National Australia Bank increased 7 cents to $25.02. Westpac advanced 17 cents to $26.27.

Toll Holdings rose 4 cents to $4.58, Leighton increased 5 cents to $17.89 and property developer Mirvac Group closed unchanged at $1.47.

Westfield Group slid 1 cent to $10.59.