Australian Indexes Halt 6-day Slide, Woodside to Explore Near Gabon

Marcus Jacob
11 Aug, 2014
New York City

Australian markets turned higher after six days of losses in a row. Treasury Wine Estates received second takeover bid. JB Hi-Fi reported annual net increased 10% and earnings met lowered outlook. Woodside Petroleum acquired deep water oil exploration rights off the coast of Gabon.

[R]5:00 PM Sydney, Australia – Australian markets turned higher after six days of losses in a row. Treasury Wine Estates received second takeover bid. JB Hi-Fi reported annual net increased 10% and earnings met lowered outlook. Woodside Petroleum acquired deep water oil exploration rights off the coast of Gabon.[/R]

Australian markets held on most of the early gains after six days of declines in a row.

Total lending increased 7.6% to $72.9 billion in June, according to the latest data released by the Australian Bureau of Statistics. The increase in lending was driven by 12.1% rise in business lending.

Australian dollar closed at 92.75 U.S. cents and stock trading turnover dropped to 516 million shares worth $3.2 billion.

ASX 200 index jumped 21.70 or 0.4% to 5,457 and the broader All Ordinaries gained 19.80 to 5,449.40.

Stocks in Review

G8 Education Ltd climbed 2.7% to $4.91 after the child care service provider reported revenue in the first-half ending in June surged 59% to $187.2 million from $117.4 million a year ago period.

Profit in the period soared 48% to $16.3 million compared to $11 million and diluted earnings per share jumped to 5.21 cents from 4.14 cents a year earlier.

Today in addition, the company agreed to acquire 25 premium childcare and education centers from a number of different vendors for about $72.7 million.

JB Hi-Fi Limited declined 7.9% to $17.84 after the consumer products retailer said total sales in the year ending in June climbed 5.3% to $3.48 billion from $3.31 billion a year ago period. Comparable store sales in the year jumped 2%.

Net income in the year soared 10.3% to $128.4 million compared to $116.4 million from a year earlier.

The retailer added online sales in the year surged 13.9% that represent 2.2% of total sales and unique visitors to the websites increased 9.9% from a year ago.

The company said total sales in July dropped 3.2% and comparable store sales in the month declined 5.5%. The retailer also declared 29 cents a share final dividend totaling 84 cents a share for the year.

Bendigo and Adelaide Bank Limited jumped 2.3% to $12.46 cents after the financial service provider reported net interest income in the year ending in June climbed 8.3% to $1.43 billion from $1.32 billion a year ago period.

Profit in the year jumped 5.7% to $372.3 million compared to $352.3 million and diluted earnings per share increased to 83.6 cents to 79.9 cents a year earlier.

Treasury Wine Estates Limited said it received a competing second bind in as many weeks from an anonymous suitor offering $5.20 a share matching the sweetened offer from Kohlberg Kravis and Rhone Capital.