Australian Stocks Advance on Higher Gold Price

Marcus Jacob
23 Jul, 2013
New York City

Australian stocks advanced and the dollar traded near its recent low. Fortescue Metals reaffirmed its annual iron ore output target and plans more cost cuts. Billabong sold its Dakine brand for $70 million and completed its $325 million bridge loan.

[R]5:00 PM Sydney – Australian stocks advanced and the dollar traded near its recent low. Fortescue Metals reaffirmed its annual iron ore output target and plans more cost cuts. Billabong sold its Dakine brand for $70 million and completed its $325 million bridge loan.[/R]

Market indexes in Sydney opened higher and advanced as the session progressed and healthcare, financials and resource sector stocks led the gainers.

The ASX 200 index increased 15.20 to close at 5,017.10 and the broader All Ordinaries rose 15.70 to 5,004.60.

Australian dollar traded higher to 92.69 U.S. cents and in stock trading turnover climbed to 703 million shares worth $3.8 billion.

Stocks in Review

Rio Tinto gained 21 cents to $56.76 and BHP jumped 38 cents to $34.50. Woodside Petroleum Limited dropped 51 cents to $37.72.

David Jones Limited rose 4 cents to $2.61 and Breville Group increased 12 cents to $7.79. Woolworths added 2 cents to $33.53.

Mirvac Group closed unchanged at $1.63. Lend Lease increased 7 cents to $8.86.

Westpac rose 9 cents to $29.49 and Commonwealth jumped 0.7% to $72.39. National Australia Bank added 8 cents to $30.49 and ANZ up 1 cent to $28.92.

Billabong International Limited slumped 1.2% to 41.5 cents after the surfwear retailer agreed to sell the maker of ski and skatewear Dakine for $70 million. The troubled retailer also completed $325 million bridge loan as part of Altamont Capital Partner’s rescue deal.

Fortescue Metals Group Limited slipped 1.6% to $3.62 after the iron ore producer said it remained on track to reach a target output rate of 155 million metric tons by the end of December. In the three months to June, the company lifted its shipments by 24% to 25 million tons. Total shipments for the fiscal year were up 41% to 80.9 million tons.

Funtastic Limited declined 2.8% to 17.5 cents after the retailer lowered its earnings outlook for the fiscal year to between $20 million and $21 million compared to earlier guidance of $23 million and $25 million.

Incitec Pivot Limited rose 0.4% to $2.70 after the fertilizer producer expects second half-profit may drop to $23.5 million after tax as production of ammonium phosphate is likely to decline 400,000 tons and full-year production to fall 763,000 tons.

Oil Search Limited dropped 2.6% to $8.02 after the oil and gas explorer reiterated its revised full-year production forecast and expects to produce between 6.2 mmboe and 6.7 mmboe, despite production decreased in the first-half to 1.63 million barrels.