Australian Markets Rebound 1%, Atlas Iron Lifts Production Outlook

Marcus Jacob
29 Jan, 2014
New York City

Australian market indexes rebounded as emerging markets instability fears receded. Australian dollar recovered 0.3%. Atlas Iron Ore lifted its 2014 iron ore production outlook and Drillsearch revised higher its energy output target.

[R]4:30 PM Sydney – Australian market indexes rebounded as emerging markets instability fears receded. Australian dollar recovered 0.3%. Atlas Iron Ore lifted its 2014 iron ore production outlook and Drillsearch revised higher its energy output target.[/R]

Australian stocks rebounded after emerging markets stabilized and Turkey raised its interest rates to arrest the decline in lira.

Australian dollar rose to 88.05 U.S. cents and in stock market trading turnover slumped to 713 million shares worth $4.3 billion.

The ASX 200 index jumped 53.90 or 1% to close at 5,229 and the broader All Ordinaries advanced 52.60 to 5,240.60.

Stocks in Review

Rio Tinto climbed $1.49 to $65.80. BHP jumped 56 cents to $36.87. Woodside Petroleum Limited fell 12 cents to $37.85.

Westpac increased 42 cents to $31.20 and Commonwealth Bank added 1.1% to $74.92.

Atlas Iron Limited surged 9.9% to $1.05 after the iron ore producer lifted its 2014 production guidance to between 10.2 million tons to 10.7 million tons, an increase from the previous guidance between 9.8 million tons and 10.3 million tons.

Atlas said it shipped a record 5.1 million tons of iron ore in the six-month period to December.

The company forecasts earnings before interest, tax, depreciation and amortization for the first-half ending in December in the range of $193 million to $203 million.

BC Iron Limited jumped 3.2% to $5.15 after the miner reaffirmed its full-year 2014 guidance for its Nullagine joint venture with Fortescue Metals Group after iron ore production in the December quarter increased.

The company reaffirmed sales between 5.8 million tons and 6.2 million tons and capital expenditure for the year of about $20 million.

Drillsearch Energy increased 6.3% to $1.52 and the energy explorer lifted its full-year production outlook to 3.3 million equivalent of barrels from 2.5 million barrels.

Forge Group Limited plunged 8.9% to 82 cents after the construction company estimated full-year earnings before interest, tax, depreciation and amortization loss in the range of $20 million to $25 million.

The group earlier forecasted EBITDA for the year between $45 million and $50 million.

GPT Group rose 0.3% to $3.61 after the Australia-based property developer estimated operating income for the year of $471.8 million, slightly up from the year earlier.