Telstra Sells CSL in Hong Kong for $2.4 Billion, Australian Indexes Rise

Marcus Jacob
20 Dec, 2013
New York City

Australian stocks extended gains and closed up 3.3% in the week. Ahead of holiday week, trading volume surged and resource and bank stocks led the gainers. Telstra Agreed to sell its Hong Kong based mobile business CSL for $2.43 billion.

[R]4:30 PM Sydney – Australian stocks extended gains and closed up 3.3% in the week. Ahead of holiday week, trading volume surged and resource and bank stocks led the gainers. Telstra Agreed to sell its Hong Kong based mobile business CSL for $2.43 billion.[/R]

Australian market indexes extended gains and closed at the high of the day and the dollar advanced.

Australian dollar rose to 88.68 U.S. cents. Stock trading turnover surged to 1.4 billion shares worth $8.8 billion.

The ASX 200 index jumped 63 or 1.2% to close at 5,265.20 and the broader All Ordinaries climbed 59.50 to 5,261.50. For the week, ASX 200 soared 3.3%.

Stocks in Review

Rio Tinto gained 21 cents to $66.74 after the iron ore producer said Chinese steel mills are buying increasing amounts of higher-quality iron ore as part of efforts to reduce their impact on the environment.

BHP jumped $1.01 to $36.80. Woodside Petroleum Limited climbed 65 cents to $37.95.

Westpac increased 75 cents to $31.37.

Aquila Resources Limited gained 0.9% to $2.18 after the company reported that China-based Baosteel Group Corporation plans to purchase 19 million shares or approximately 4.6% of company stake.

Amcor Limited slid 0.2% to $10.43 after the Australia-based packaging company signed agreement to buy the certain U.S. business assets from Constar International Holdings and the purchase price is still not agreed.

The transaction is expected to conclude during the first quarter of 2014.

Mirvac Group climbed 3% to $1.72 and the company plans to sell its two regional malls in New South Wales and Victoria for $100 million and bought new commercial and residential assets in Victoria and Western Australia.

Telstra Corporation Ltd increased 1.8% to $5.20 after the company agreed to sell its 76.4% stake in Hong Kong-based mobile business CSL to HKT Ltd. in a deal worth $2.43 billion.

Warrnambool Cheese & Butter Factory Co rose 0.6% to $9.25 after the dairy products maker expects earnings before interest, tax, depreciation and amortization to double in the first-half ending in December from $29.3 million a year earlier.

For the year, it reiterated earlier EBITDA guidance between $47 million and $52 million up from $25.5 million.