Australian Stocks Jump, Banks in Focus Ahead of Earnings

Marcus Jacob
28 Oct, 2013
New York City

Australian stocks gained and the ASX 200 index added 1%. Banks were in focus ahead of earnings and stocks jumped near record territory on the expectations of higher earnings.

[R]4:30 PM Sydney – Australian stocks gained and the ASX 200 index added 1%. Banks were in focus ahead of earnings and stocks jumped near record territory on the expectations of higher earnings.[/R]

Australian stocks jumped ahead of earnings from banks this week and investors bid up resource and banking stocks.

Uranium miners were also in focus after Greenland removed the ban on mining of radioactive material.

Australian dollar lowered to 96.05 U.S. cents. In stock trading, turnover edged up to 837 million shares worth $5.2 billion.

The ASX 200 index jumped 55.10 or 1% to close at 5,441.40 and the broader All Ordinaries advanced 51.60 to 5,437.30.

Stocks in Review

Rio Tinto jumped 61 cents to $64.38 and BHP climbed 44 cents to $37.85. Woodside Petroleum Limited increased 35 cents to $38.80.

Westpac rose 25 cents to $34.61.

Ardent Leisure Group increased 1.5% to $2 after the leisure and entertainment group reported revenue in the first-quarter soared 19.8% to $126.2 million and said revenue from Goodlife health clubs surged 51.8% to $40.43 million a year ago.

The company said total EBITDA jumped 19.4% to $32.3 million compared to the prior corresponding quarter.

GPT Group gained 1.6% to $3.78 after the property developer lifted its full-year earnings guidance to an increase of at least 6%, positive sales growth and stable occupancy rate at 99.6% and funds under management to increase by $10 billion as part of new five-year strategy.

FKP Property Group closed unchanged at $2.03 after the property and investment group plans to raise approximately $232 million to reduce its debt position and improve the balance sheet.

The offer price is $1.30 per new stapled security, this represents 36% discount to the closing price of October 25.

In the financial year 2013, the group reported net loss of $179 million.