Australian Index Rebounds 1.5%, Northern Star Puts Gold Project on Hold

Marcus Jacob
09 Jul, 2013
New York City

Australian indexes rose to a one-month high as investors shake off global worries. Yanzhou Coal Mining Company is planning to privatize its Australian listed company. Northern Start delayed its gold mining project indefinitely.

[R]5:30 PM Sydney – Australian indexes rose to a one-month high as investors shake off global worries. Yanzhou Coal Mining Company is planning to privatize its Australian listed company. Northern Start delayed its gold mining project indefinitely.[/R]

Australian stocks rebounded and resource and banking sector stocks led the gainers.

The ASX 200 index increased 72.20 or 1.5% to close at 4,881.70 and the broader All Ordinaries jumped 68.90 to 4,866.50.

Australian dollar traded near a 34-month low at 91.45 U.S. cents and in stock trading turnover climbed to 704 million shares worth $4.3 billion.

Australian business conditions worsened in June, according to a private survey conducted by NAB.

The index of business conditions declined to -8 in June from -4 in May, according to the bank statement.

Stocks in Review

Northern Star Resources Limited declined 2.5% to 61 cents and the gold miner said it has delayed indefinitely its Ashburton gold project in Western Australia.

Rio Tinto rose 40 cents to $52.04 and said inclement weather hits its West Australian iron ore production in the quarter to June.

BHP jumped 66 cents to $31.61.

Fortescue Metals Group Limited added 3 cents to $3.33 and said in a regulatory filing said “there was no capacity available to Brockman on railway which is owned by its infrastructure arm The Pilbara Infrastructure.”

The iron ore producer already cut its 2012-2013 iron ore production guidance by two million tons to 80-82 million tons.

Woodside Petroleum Limited gained 40 cents to $36.59.

David Jones Limited rose 2 cents to $2.54 and Breville Group up 11 cents to $7.30. Woolworths climbed 70 cents to $33.23.

Mirvac Group added 5 cents to $1.70. Lend Lease advanced 28 cents to $8.83.

Westpac increased 61 cents to $28.95, Commonwealth gained 1.7% to $68.99 and National Australia Bank jumped 1.9% to $29.42.

ANZ rose 53 cents to $28.66 and the bank raised $1 billion just in a week after introducing $750 million.

Alumina Limited jumped 3% to $1.03 despite its American parent Alcoa yesterday reported sharp loss of $131 million in the second quarter. Alcoa expects global demand of aluminum to pick up by 7% this year.

Atlas Iron Limited dropped 2.5% to 77.5 cents after the iron ore explorer said an agreement between small iron ore producers of Pilbara has opened the scope to find third-party transport infrastructure opportunities.

Goodman Group rose 0.6% to $4.86 after the industrial investment company raised $775 million of new equity, through its European operations and received total demand in more than required $1.3 billion. The proceeds will be used for the purchase of prime assets in key European logistics locations.