Australian Stocks Power Ahead

Marcus Jacob
30 Jul, 2014
New York City

Australian stocks advanced on strong trading volume on rising confidence in global economy. Tabcorp Holdings agreed to acquire regional government controlled gaming business as a part of a deal to win long term gaming license.

[R]5:00 PM Sydney, Australia – Australian stocks advanced on strong trading volume on rising confidence in global economy. Tabcorp Holdings agreed to acquire regional government controlled gaming business as a part of a deal to win long term gaming license.[/R]

Australian stocks opened higher and ahead of local and international economic data release this week. Indexes paired gains by mid-day but resumed the advance in late afternoon.

Australian dollar closed at 93.77 U.S. cents and stock trading turnover jumped to 681 million shares worth $4.25 billion.

ASX 200 index gained 34.50 or 0.6% to 5,622.90 and the broader All Ordinaries increased 34.50 to 5,615.10.

U.S. Federal Reserve is scheduled to announce its widely expected decision to trim bond purchase by $10 billion at the conclusion of its 2-day policy meeting at 2 p.m. New York time.

In addition, the U.S. government is scheduled to release GDP data ahead of New York markets opening later today.

Stocks in Review

Alacer Gold Corp slipped 1.9% to $2.53 after the gold producer confirmed net in the year swung to profit $US18.8 million compared to a loss of about $US430 million a year ago period.

Liquefied Natural Gas Limited surged 14.8% to $3.73 after the oil and gas producer raised $38.6 million through an oversubscribed share placement to current investors at $2.60 per share, a 20% discount to its last traded price of $3.25.

Regis Resources Limited closed unchanged at $1.80 after the gold producer may write-downs impairment charge between $230 million and $280 million.

Tabcorp Holdings Limited gained 1.2% to $3.50 after the diversified entertainment company plans to acquire the ACT government''s gaming business ACTTAB for $105.5 million. The state government will also issue a long term gaming license.

Tabcorp will pay annual $1 million license fee and with the deal the company will expand its portfolio of gaming businesses in ACT that includes the territory’s Keno, trackside and wagering business.