Australian Markets Reverse Early Losses, Rio Sells $3 Billion of Bonds

Marcus Jacob
17 Jun, 2013
New York City

Australian market indexes gained 0.7% after banks led the turnaround in the market sentiment but resource sector stocks lagged. Australia

[R]5:00 PM Sydney – Australian market indexes gained 0.7% after banks led the turnaround in the market sentiment but resource sector stocks lagged. Australia’s second largest miner priced $3 billion of fixed and floating rate bonds.[/R]

Stocks in Sydney opened lower but in the afternoon recovered most of the losses and closed at the high of the day.

The ASX 200 index gained 34.10 or 0.7% to close at 4,825.90 and the broader All Ordinaries rose 29.50 to 4,805.

Australian dollar closed at 96.38 U.S. cents and in stock trading turnover was stable to 789 million worth $4.6 billion.

The Australian Bureau of Statistics reported sales of new motor vehicles increased 0.2% in May to 93,209.

Stocks in Review

Rio Tinto slipped 33 cents to $53.65 and BHP fell 11 cent to $32.80.

Rio Tinto fell 0.6% after the metal miner priced an aggregate of US$3 billion of fixed and floating rate bonds.

Woodside Petroleum Limited added 2 cents to $34.91.

David Jones Limited closed unchanged at $2.42 and Breville Group up 4 cents to $7.47.
Woolworths gained 28 cents to $32.36.

Mirvac Group rose 1 cent to $1.60. Lend Lease plunged 70 cents or 7.5% to $8.65.

Westpac increased 53 cents to $29.47, Commonwealth up 2% to $68.47 and National Australia Bank jumped 1.8% to $29.92 and ANZ climbed 2.3% to $28.45.

Lend Lease plunged 7.5% to $8.65 after the property and infrastructure developer warned shareholders that underlying construction markets in Australia, Europe and the Middle East are expected to weaken in the second half of the 2013. The company also announced its operations restructuring.

Newcrest Mining, Ltd. extended losses by 1.9% to $11.35 and the gold miner is facing a regulator scrutiny and the company is looking to write down value of mines in Australia, Papua New Guinea and Africa by $6 billion.

“Over the next three months, we will see a substantial amount of the gold equities sector getting rid of high-cost ounces,” said Galt, a former managing director of Newcrest Mining.

Skilled Group Limited surged 21 cents or 9.6% to $2.39 after the professional workforce provider plan to acquire Darwin based marine contractor Broadsword for $75.5 million.

Westpac gained 1.8% to $29.47 after the financial service provider agreed to sale the site of Addison Quays in Brisbane to the De Luca Corporation for about $6.4 million.