Australian Indexes Extend Weekly Gain to 2.4%, ANZ Profit Jumps 8% to $5 B

Marcus Jacob
15 Aug, 2014
New York City

Australian market indexes gained 0.3% and extended weekly advance to 2.4%. ANZ Banking Group said nine-month cash profit increased 8% to $5.2 billion and the bank said it is on track to meet its annual earnings outlook. James Hardie plunged 7% after quarterly net dropped 80%.

[R]5:00 PM Sydney, Australia – Australian market indexes gained 0.3% and extended weekly advance to 2.4%. ANZ Banking Group said nine-month cash profit increased 8% to $5.2 billion and the bank said it is on track to meet its annual earnings outlook. James Hardie plunged 7% after quarterly net dropped 80%.[/R]

Australian indexes gained 0.3% and extended weekly advance to 0.9% despite weak global economic indicators and elevated geopolitical tensions.

Market indexes gained on the speculation that BHP Billiton is likely to announce its asset spinoff plan next week. The diversified resource conglomerate is likely to focus on petroleum, coal, copper and iron ore assets and may spinoff other assets.

Australian dollar closed at 93.30 U.S. cents and stock trading turnover dropped to 630 million shares worth $4.7 billion.

ASX 200 index gained 18 or 0.3% to 5,566.50 and the broader All Ordinaries rose 16.70 to 5,559.60.

For the week, ASX 200 jumped 2.5%.

Stocks in Review

Australia and New Zealand Banking Group slipped 1.1% to $32.39 after the financial services provider said cash profit for nine-month period ending in June soared 8% to $5 billion and customer deposits climbed 8.3% while net loans and advances jumped 5.8% from a year ago period.

The bank said provisions for bad debts in the period are now expected to decline 12% compared to previous estimate of 10% fall from $1.20 billion a year earlier.

The bank didn''t provide year-ago comparisons and any details on profit for the April-June quarter.

James Hardie Industries Plc plunged 7.2% to $12.99 after the construction materials producer reported group sales in the first-quarter ending in June climbed 12% to US$416.8 million from US$372.2 million a year ago period.

Net income in the quarter tumbled 79.7% to US$28.9 million compared to US$142.2 million and diluted earnings per share declined to 6 cents from 32 cents a year earlier.

The company lowered its earnings guidance for the year ending in September.

Mineral Resources Limited gained 0.8% to $10.24 after the goods and services supplier stated revenue in the year ending in June surged 73% to $1.90 billion from $1.10 billion a year ago period.

Net profit in the year climbed 28% to $230.7 million compared to $180.4 million and diluted earnings per share jumped to $1.24 from 97.4 cents a year earlier.