Australian Indexes Extend Gains; Boart, Syrah Surge

Marcus Jacob
23 Dec, 2013
New York City

In light trading, Australian market indexes extended gains. Three companies completed public offerings. Boart Longyear surged 15% after the company reaffirmed its earnings outlook. Syrah Resourced won a 25-year mining license in Mozambique.

[R]4:30 PM Sydney – In light trading, Australian market indexes extended gains. Three companies completed public offerings. Boart Longyear surged 15% after the company reaffirmed its earnings outlook. Syrah Resourced won a 25-year mining license in Mozambique.[/R]

Australian stocks closed higher and extended annual gains but trading volume plunged 40% as investors stayed away for Christmas week.

Australian dollar increased to 89.47 U.S. cents. Stock trading turnover declined to 552 million shares worth $3.2 billion.

The ASX 200 index gained 26.70 or 0.5% to close at 5,291.90 and the broader All Ordinaries increased 30 to 5,291.50.

Three IPOs

Sandon Capital Investments Limited priced its initial public offering at $1 a share and closed at 95 cents.

Innate Immunotherapeutics Limited, the developer of microparticle technology to fight cancer and infections priced its initial public offering at 20 cents a share and closed at the same price.

The development stage company lost $4.3 million in fiscal year ending in Mach 2013 and lost $4.2 million in the previous financial year.

Elsmore Resources Limited, the tin and gemstone mining company, priced its initial public offering at 20 cents a share and closed at the same price.

Stocks in Review

Rio Tinto gained 16 cents to $66.90. BHP slid 7 cents to $37.16. Woodside Petroleum Limited increased 31 cents to $38.90.

Westpac jumped 35 cents to $31.92.

Boart Longyear Ltd surged 15.5% to 41 cents after the drilling services provider reaffirmed its full-year results matching the previous outlook announced in October.

Goodman Fielder Ltd increased 2.3% to 66.5 cents after the food producer sold its biscuits division in Australia to Green''s Foods for $17 million.

Leighton Holdings Limited climbed 4.4% to $16.04 after the engineering construction group secured $230 million one-year contract extension at the Mt Owen Coal Mine in New South Wales.

Syrah Resources Ltd climbed 8.9% to $2.82 after the Mozambique government granted a 25-year mining license for the Balama Graphite and Vanadium Project.

Watpac Limited jumped 4.2% to 87.5 cents after the property developer won contract to build a residential tower on St Kilda Road in Melbourne for above $80 million.