New 20-Month High in Australia, BHP Holds Iron Ore Output Target

Marcus Jacob
23 Jan, 2013
New York City

Australian stocks closed at a new 20-month high after latest inflation data was below estimate and BHP Billiton reported higher sales and held its target for iron ore production growth of 3% in 2013. Linc Energy soared after it revised its energy estimate at shale operation in South Australia.

[R]6:30 PM Sydney – Australian stocks closed at a new 20-month high after latest inflation data was below estimate and BHP Billiton reported higher sales and held its target for iron ore production growth of 3% in 2013. Linc Energy soared after it revised its energy estimate at shale operation in South Australia.[/R]

Stocks in Sydney advanced and the benchmark index closed at a new 20-month high after BHP Billiton reported higher earnings and maintained its iron ore production target for the year.

The ASX 200 index gained 8.70 to 4,787.80 and the broader All Ordinaries increased 9.14 to 4,812.05.

The Australian dollar declined and closed at $1.052 after inflation was under the target set by the central bank.

Australian Bureau of Statistics reported consumer price index in December increased at 0.2% and for the year 2012 rose 2.2%. The underlying inflation rose 0.6%. The inflation data was below the estimate of most economists.

The total inflation was driven by 6.2% increase in travel and accommodation and 2.6% increase in fuel prices and health cost surged 7.7% in the year. Vegetable prices declined 5.7% and pharmaceutical prices fell 3.5%.

Stock Movers

BHP Billiton in its latest production report said petroleum production increased to 121 million barrels of equivalent in the December half-year and 60 million barrels in the December quarter. The production in the quarter increased 3% and in the half year rose 11%.

Iron ore production in the quarter increased 3% and in the half-year to December rose 2% to 81.9 million tons. The company anticipated iron production to increased 3% in 2013.

BHP Billiton Limited increased 48 cents to $37.06 and Rio Tinto Limited dropped 44 to $66.45. Fortescue Metals added 2 cents $4.66.

Newcrest Mining climbed 34 cents to $23.55. Kingsgate jumped 10 cents to $5.01 and Whitehaven Coal up 1 cent to $3.58.

Transfield Services declined 7 cents to $1.73 and engineering contractor WorleyParsons gained 7 cents to $24.21. Monadelphous Group advanced 21 cents to $25.01 and Downer EDI slumped 13 cents to $4.29.

Lend Lease decreased 12 cents to $9.92.

Linc Energy soared 10% to $2.16 after the company estimated energy equivalent from its South Australian shale operation of 223 billion barrels.

Oil Search Limited closed unchanged at $7.10 and Santos Limited gained 10 cents to $11.85.

Woodside Petroleum up 8 cents to $35.44 and Origin Energy Limited added 7 cents to $12.18.

Woolworths slipped 12 cents to $31.13 and Kathmandu rose 1 cent to $1.73.

David Jones Limited up 1 cent to $2.39 and Wesfarmers increased 9 cents to $37.85. Breville Group gained 17 cents to $6.64.

Billabong slid 2 cents to 98 cents.

Commonwealth Bank of Australia jumped 13 cents to $62.67 and Bank of Queensland slipped 5 cents to $7.93 and ANZ advanced 28 cents to $25.94. National Australia Bank increased 16 cents to $26.75. Westpac climbed 26 cents to $26.75.

Toll Holdings added 3 cents to $4.97, Leighton dropped 29 cents to $18.84 and property developer Mirvac Group slid 1 cent to $1.53.

Westfield Group slumped 6 cents to $10.80.

Qantas slipped after the airline asked voluntary redundancies at ground staff at Sydney International Airport after it lost a multi-million dollar contract.