Weekly Rise of 1.4% in Australian Indexes, Santos Net Plunges 24%

Marcus Jacob
22 Aug, 2014
New York City

Australian indexes extended gains by 0.1% and gained 1.4% in the week on better than expected domestic earnings. In the coming week, Qantas Airways, Woolworths and WorleyParsons are scheduled to release earnings.

[R]5:00 PM Sydney, Australia – Australian indexes extended gains by 0.1% and gained 1.4% in the week on better than expected domestic earnings. In the coming week, Qantas Airways, Woolworths and WorleyParsons are scheduled to release earnings.[/R]

Australian market indexes extended gains by 0.1% and for the week advanced 1.4% after earnings from domestic companies were ahead of expectations.

Australian dollar closed at 93.22 U.S. cents and on the stock market turnover dropped to 731 million shares worth $4.5 billion.

ASX 200 index rose 6.70 to 5,645.60 and the broader All Ordinaries gained 6.50 to 5,640.50. For the week, ASX 200 increased 1.4%.

Stocks in Review

Crown Resorts Ltd gained 1.2% to $16.18 after the casino operator secured the extension of 17 years for Melbourne casino license and scrapped a tax on high rollers from the Victorian State government.

Crown will pay additional $910 million to the state government and make a series of upfront payments for the extension.

The company will pay upfront fee for about $250 million once the amendments to the casino management agreement and the license become effective. Crown will also make a $250 million payment in 2033.

Federation Centres Limited closed unchanged at 32 cents after the shopping mall owner stated total revenue in the year ending in June dropped 3.9% to $546.5 million from $568.6 million a year ago period.

Net profit in the year surged 107.5% to $441.3 million compared to $212.7 million and jumped to 30.76 cents from 14.92 cents a year earlier.

Iluka Resources Limited jumped 3.4% to $8.88 after the zircon producer said revenue in the first-half ending in June declined 10.1% to $343.2 million from $381.7 million a year ago period.

Net profit in the period tumbled 65.9% to $11.7 million compared to $34.3 million and earnings per share declined to 2.8 cents from 8.2 cents a year earlier.

Santos Ltd climbed 3.9% to $15.16 after the oil and gas producer reported revenue in the first-half ending in June surged 25.2% to $1.89 billion from $1.51 billion a year ago period.

Net profit in the period plunged 24% to $206 million compared to $271 million and diluted earnings per share dropped to 21 cents from 28 cents a year earlier.

The oil and gas producer lifted interim-dividend 33% to 20 cents per share.