Australian Markets Extend Gains to New Highs, Fortescue Shipment Rises

Marcus Jacob
24 Jan, 2013
New York City

Stocks in Australia traded at a new 20-month high after the latest manufacturing survey from China showed continued strength. Fortescue Metals iron shipment was ahead of expectations. OZ Minerals plunged on copper production outlook.

[R]6:30 PM Sydney – Stocks in Australia traded at a new 20-month high after the latest manufacturing survey from China showed continued strength. Fortescue Metals iron shipment was ahead of expectations. OZ Minerals plunged on copper production outlook.[/R]

Market indexes in Sydney closed at new 20-month highs after the latest manufacturing report from China and a flood of domestic earnings.

The ASX 200 index advanced 22.40 or 0.5% to 4,810.20 and the broader All Ordinaries gained 21.72 to 4,833.77.

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

In trading, turnover increased to 1.6 billion shares worth $3.9 billion and 460 stocks increased, 508 decreased and 334 were unchanged.

A private survey conducted by HSBC showed purchasing managers’ index increased for the fifth month in a row in December to 51.9 from 51.5 in December. The index for the month was at a 2-year high.

Stock Movers

OZ Minerals plunged 51 cents to $6.80 after the company estimated copper production from mine will fall as much as 10% in the fiscal year to as low as 90,000 tons. Production cost is expected to soar 40% to between $1.50 and $1.65 a pound.

Gold production is estimated to be steady between 130,000 and 150,000 ounces.

Newcrest Mining jumped 43 cents to $23.98. Kingsgate plunged 33 cents or 6.6% to $4.68 and Whitehaven Coal slumped 8 cents to $3.50.

Fortescue Metals Group traded volatile and closed near $4.62 after the company said it shipped 19.6 million tons of iron ore. The company also said it received $111 a dry tonnage.

Transfield Services up 1 cent to $1.74 and engineering contractor WorleyParsons added 12 cents to $24.33. Monadelphous Group advanced 37 cents to $25.38 and Downer EDI gained 3 cents to $4.32.

Lend Lease increased 16 cents to $10.08.

Linc Energy surged 51 cents or 23.6% to $2.67 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 rose 1 cent to $11.86.

Woodside Petroleum gained 25 cents to $35.69 and Origin Energy Limited added 10 cents to $12.28.

Noni B, women’s apparel retailer plunged 14% to 75 cents after the company said its interim net income is expected to fall between $1.7 million and $1.9 million from $2.4 million in the previous period.

Woolworths up 4 cents to $31.17 and Kathmandu closed unchanged at $1.72.

David Jones Limited closed unchanged at $2.39 and Wesfarmers increased 16 cents to $38.01. Breville Group gained 6 cents to $6.70.

Billabong slid 2 cents to 96 cents.

Commonwealth Bank of Australia climbed 57 cents to $63.24 and Bank of Queensland closed unchanged at $7.93 and ANZ rose 6 cents to $26. National Australia Bank jumped 34 cents to $27.09. Westpac climbed 35 cents to $27.10.

Toll Holdings gained 5 cents to $5.02, Leighton increased 24 cents to $19.08 and property developer Mirvac Group rose 1 cent to $1.54.

Westfield Group gained 3 cents to $10.83.