Australia Estimates Resource Exports to Jump 14%, Stocks Rebound

Marcus Jacob
26 Jun, 2013
New York City

Australian stocks rebounded after China

[R]5:30 PM Sydney – Australian stocks rebounded after China’s credit crunch eased. Australian dollar hovered near 92 cent level after dropping near the yearly low. Australian government estimated 14% increase in metals and mineral exports in next financial year.[/R]

Australian stocks closed higher following a rebound in Asian and international markets.

Investor sentiment was bolstered after the Chinese central bank official offered assurances that the interbank liquidity crunch is temporary and the People’s Bank of China has “sufficient tools” to stabilize the money market.

The Bureau of Resources and Energy Economics lifted the mineral exports outlook and estimated total exports to increase as much as 14% to $197 billion in the next fiscal year.

The ASX 200 index climbed 66.10 or 1.4% to close at 4,722.10 and the broader All Ordinaries jumped 74.30 to 4,707.80.

Australian dollar closed at 92.77 U.S. cents and in stock trading turnover declined to 858 million shares worth $4.7 billion.

Stocks in Review

Rio Tinto climbed $1.66 to $51.90 and finalized its plan to retail its diamond business. Rio Tinto said the medium to long-term market fundamental diamonds remain robust in Asia and maintain strong demand in North America.

BHP jumped 81 cents to $31.62 Woodside Petroleum Limited gained 57 cents to $34.31.

David Jones Limited up 3 cents to $2.51 and Breville Group increased 6 cents to $7.11.
Woolworths added 24 cents to $32.09.

Mirvac Group rose 4 cent to $1.54. Lend Lease advanced 23 cents to $8.40.

Westpac jumped 54 cents to $28.24, Commonwealth up 1.8% to $67.29 and National Australia Bank climbed 1.8% to $29.23 and ANZ increased 46 cents to $27.84.

APA Group gained 1.5% to $5.98 after the energy infrastructure developer entered into a non-binding agreement to work with Armour Energy and agreed to explore the development of new pipeline infrastructure from north to eastern and Northern territory of the country.

Linc Energy Ltd surged 11.7 to 91 cents after the coal producer intends to acquire coal operation of Queensland which owned by BHP Billiton Ltd and Mitsubishi Corporation.

Paladin Energy Ltd plunged 6.8% to 82 cents after the uranium producer delayed stake sell deal of African uranium mine until August.

Chief executive John Borshoff said “""the sale will be successful but revised bid from one of the parties need reconsideration and the approval process is extended.""

Telstra Corporation Limited jumped 2.9% to $4.65 and local media reports suggested that the the communication service provider plans to invest in US mobile app developer Kony Solutions for $18.3 million.

Moly Mines Limited soared more than 14% after the company agreed to sell its iron ore processing company Mineral Resources Limited for $38 million.