Australian Indexes Extend Gains, BHP Lifts Iron Ore Production Estimate

Marcus Jacob
22 Oct, 2013
New York City

Australian market indexes gained for the second day in a row. BHP Billiton lifted its iron ore production guidance by 2.4%. Mirvac Group reaffirmed its annual operating earnings outlook. Oil Search said third-quarter net dropped 14%.

[R]4:30 PM Sydney – Australian market indexes gained for the second day in a row. BHP Billiton lifted its iron ore production guidance by 2.4%. Mirvac Group reaffirmed its annual operating earnings outlook. Oil Search said third-quarter net dropped 14%.[/R]

Australian markets extended gains for the second day in a row as mining companies were in focus.

Australian dollar lowered to 96.53 U.S. cents. In stock trading, turnover increased to 851 million shares worth $4.1 billion.

The ASX 200 index gained 21.30 or 0.4% to close at 5,373.10 and the broader All Ordinaries rose 19.70 to 5,371.20.

Stocks in Review

Rio Tinto rose 22 cents to $63.97.

BHP climbed 85 cents to $37.05 after the mining group lifted its iron-ore production guidance for fiscal 2014 to 212 million tons, or 2.4% above the previous guidance of 207 million tons.

Woodside Petroleum Limited added 2 cents to $38.36.

Westpac gained 3 cents to $34.11.

APN News and Media Limited surged 8.3% to 45.5 cents after the media group is in talks to sell its remaining stake of outdoor advertising business to a private equity group for $69 million.

Blackmores Limited declined 3.4% to $25.11 after the health products maker reported group sales in the first-quarter ending in September slid 1.3% to $84.01 million from $85.01 a year ago period.

Profit for the quarter plunged 30.9% to $5.38 million compared to $7.78 million a year earlier. Profit-before-tax tumbled 31% to $7.53 million.

Mirvac Group gained 2% to $1.79 after the property investor reaffirmed operating earnings per share guidance for fiscal 2014 as construction volumes and prices start to improve.

Oil Search Limited rose 0.1% to $8.65 after the oil and gas explorer reported total revenue for the third-quarter ending in September dropped 14% to $175.3 million from $204.9 million a year earlier.

The company added production in the quarter jumped 10% to 1.78 million barrels of oil equivalent compared to the second quarter.

Sundance Resources Limited plunged 15.4% to 11 cents after the Africa-focused iron ore explorer will issue convertible notes and options to Noble Resources International and an investor consortium to raise $40 million for its Mbalam-Nabeba Iron Ore Project.