Australian Stocks Extend Rally, Slower Rise in Inflation

Marcus Jacob
24 Apr, 2013
New York City

Australian stocks jumped for the second day in a row led by a recovery in mining and energy stocks. Australian consumer price inflation in the first quarter to March increased 0.4% and for the year jumped 2.5%.

[R]6:30 PM Sydney – Australian stocks jumped for the second day in a row led by a recovery in mining and energy stocks. Australian consumer price inflation in the first quarter to March increased 0.4% and for the year jumped 2.5%.[/R]

Australian stocks rebounded after resource stocks led the charge for the second day in a row and the latest read on inflation was lower than expected.

The ASX 200 index climbed 86.20 or 1.7% to 5,102.40 and the broader All Ordinaries jumped 81.60 to 5,084.20.

Australian dollar closed up $1.024 and in stock trading, turnover decreased to 1 billion shares valued at $7.2 billion.

The consumer price index for the quarter to March increased at 0.4% from the previous quarter and jumped at 2.5% rate for the last twelve months, according to the data released by the Australian Bureau of Statistics.

The latest read on inflation stoked the market rally after economists had estimated the inflation index at 0.6%.

Stock Movers

Brambles Limited increased 1.73% to $8.80 after the pallet maker estimated full-year sales to increase 4% to $4.35 billion and underlying profit between $1.03 billion and $1.06 billion.

Pharmaxis Limited plunged 50% after its latest respiratory drug failed to meet its primary end point in a Phase 3 clinical trial.

Rio Tinto jumped 84 cents to $54.68 and BHP rose 34 cents to $31.70. Fortescue Metals Group declined 16 cents or 4.2% to $3.61.

Woodside Petroleum climbed 78 cents to $38.74 after the board approved 63 cents a share dividend payable on May 29.

Santos closed unchanged at $12.27.

Kingsgate added 1 cent $2.59 and Whitehaven Coal rose 1 cent to $1.93.

David Jones Limited up 5 cents to $3.08 and Breville Group jumped 14 cents to $6.89. Billabong closed unchanged at 48 cents.

Woolworths climbed 83 cents to $36.81. Kathmandu slipped 4 cents to $1.92.

Harvey Norman climbed 12 cents or 4.2% to $2.98 after the furniture retailer said third quarter sales increased 0.6% to $1.28 billion.

Toll Holdings gained 8 cents to $5.70, Leighton jumped 81 cents or 4.3% to $19.85 and Mirvac Group up 2 cents to $1.76. Lend Lease advanced 30 cents to $10.69.

Westpac increased 79 cents to $32.50, Commonwealth climbed 2.4% to $71.70 and National Australia Bank climbed 2.1% to $32.76 and ANZ jumped 65 cents to $29.90.

Macquarie Group rose 53 cents to $37.58 and Wesfarmers added 33 cents to $43.37.

Nufarm slid 1 cent to $4.04 and Linc Energy slumped 5 cents to $1.89.