Australian Indexes Extend Weekly Gain to 1.7%

Marcus Jacob
18 Oct, 2013
New York City

Australian market indexes surged and extended weekly gains to 1.7% after China reported faster than expected growth in the third quarter. Warrnambool Cheese attracted third takeover bid. Crown Limited is in talks with Sri Lankan government to develop a casino resort.

[R]4:30 PM Sydney – Australian market indexes surged and extended weekly gains to 1.7% after China reported faster than expected growth in the third quarter. Warrnambool Cheese attracted third takeover bid. Crown Limited is in talks with Sri Lankan government to develop a casino resort.[/R]

Australian market indexes gained sharply after China reported better than expected economic growth and commodities prices rose.

In addition, precious metals prices surged on a growing speculation that the U.S. Federal Reserve will delay tapering economic stimulus into next year.

Australian dollar climbed to 96.18 U.S. cents. In stock trading, turnover increased to 769 million shares worth $4.3 billion.

The National Bureau of Statistics in Beijing, China said nation’s economy expanded 7.8% in the third quarter from 7.5% in second quarter.

The ASX 200 index gained 38.40 or 0.7% to close at 5,321.50 and the broader All Ordinaries rose 39.10 to 5,321.90. For the week, ASX 200 jumped 1.7%.

Stocks in Review

Rio Tinto fell 26 cents to $63.45 and BHP slid 5 cents to $35.75. Woodside Petroleum Limited increased 16 cents to $38.16.

Westpac jumped 38 cents to $34.

Crown Limited gained 1.4% to $16.75 after the gambling company plans to develop a $400 million five-star resort on Beira Lake in Colombo of Sri Lanka.

Coates Hire Limited, the Australia-based equipment hires company agreed to extend its $1.88 billion credit facility with a syndicate of 25 banks up to September 2017.

The syndicate includes Westpac Banking Corp, Sumitomo Mitsubishi Banking Corp, ANZ Ltd, Mizuho Financial Group Inc and Development Bank of Japan, National Australia Bank Ltd and Commonwealth Bank of Australia Ltd.

Murray Goulburn Co-operative Co. Limited, offer to acquire all the issued shares in Warrnambool Cheese and Butter Factory Company Holdings Limited in a takeover offer for $7.50 cash a share represents total valued of $420 million.

Qantas Airways Limited declined 3.4 to $1.43 after the airline company expects first-half yields to ease between 2% and 3% due to weak underlying demand and competition and failed to provide earnings guidance.

Santos Limited fell 0.9% to $14.75 after the energy explorer expects oil and gas production for the year to be at the lower end from previous guidance due to technical disruptions at projects in Vietnam and Australia.

The company reported revenue in the third-quarter surged 20% to $1.03 billion and jumped 29% compared to second-quarter.