Australian Stocks and Dollar Advance, Construction Index Gains

Marcus Jacob
06 Jun, 2014
New York City

Australian stocks closed higher following additional stimulus measures in the euro zone and Bank of England left its key lending rate on hold. Aurizon and Insurance Australia Group inched closer to their acquisition targets.

[R]5:00 PM Sydney – Australian stocks closed higher following additional stimulus measures in the euro zone and Bank of England left its key lending rate on hold. Aurizon and Insurance Australia Group inched closer to their acquisition targets.[/R]

Australian stocks gained after European Central Bank offered more liquidity and announced plans for asset purchase and Bank of England left its rate and bond buying program intact.

The Australian Industry Group and Housing Industry Association said construction index in May rose 0.8 points to 46.7.

Australian dollar jumped to 93.33 U.S. cents and stock market trading turnover gained to 708 million shares worth $4.23 billion.

ASX 200 index gained 27.10 or 0.5% to 5,464 and the broader All Ordinaries rose 27.80 to 5,443.50. For the week, ASX 200 slid 0.5%.

Stocks in Review

Aurizon Holdings Ltd gained 1% to $4.96 after the rail freight operator and Baosteel inched closed to acquire Aquila Resources for $3.40 per share.

Equity Trustees Ltd declined 2.4% to $20.36 after the financial services provider is one step closer to complete to ANZ Trustees Limited.

Insurance Australia Group Limited rose 0.3% to $5.87 after the insurance company’s planned acquisition of Lumley General Insurance won approval from the Reserve Bank of New Zealand.

Sundance Resources Limited plunged 13% to 87 cents after the iron ore explorer was appointed to develop Mota-Engil Africa port and rail infrastructure project in Cameroon worth US$3.5 billion for the Mbalam-Nabeba iron ore project.