Australian Resource Stocks Lead a Rebound, AGL Energy in Restructuring

Marcus Jacob
26 May, 2015
New York City

Australian market indexes closed higher on a slight rebound in iron ore price. Banks and resource stocks were in focus. AGL Energy said it plans to sell $1 billion in assets and cut costs in a restructuring move. Ozforex plunged 10% despite reporting 52% jump in earnings.

[R]5:30 PM Sydney – Australian market indexes closed higher on a slight rebound in iron ore price. Banks and resource stocks were in focus. AGL Energy said it plans to sell $1 billion in assets and cut costs in a restructuring move. Ozforex plunged 10% despite reporting 52% jump in earnings.[/R]

Australian market indexes opened higher and spent the entire session in the positive territory.

In moderate trading, resource stocks gained on a rebound in iron ore prices and banks were in focus.

Australian dollar closed at 78.20 U.S. cents and in stock trading turnover gained to 614 million shares worth $4.1 billion.

At close, the ASX 200 Index jumped 51.90 or 0.9% to 5,773.40 and the broader All Ordinaries Index climbed 50.50 to 5,770.40.

In commodities trading, gold slid US$2 to US$1,203 an ounce and Brent crude slid 0.16 cents to close at US$65.36 a barrel.

Australian Stock Movers

AGL Energy Ltd climbed 6.4% to $16.47 after the gas and electricity supplier plans to sell assets of more than $1 billion and reduce costs by $200 million in the next two years.

Aristocrat Leisure Limited soared 6.5% to $8.38 after the poker slot machine maker reported total revenues in the first-half ending in March climbed 72.3% to $699.2 million from $394.7 million in a year ago period.

Net profit in the period jumped 35.2% to $77.6 million compared to $57.4 million and diluted earnings per share soared to 17.3 cents from 11.9 cents in the same period a year ago.

Fortescue Metals Group Limited surged 10.6% to $2.40 after the iron ore producer said two China-based steel producers and a conglomerate applied to the Australian Foreign Investment Review Board for permission to take a stake in the company.

Ozforex Group Ltd tumbled 10.5% to $2.38 after the online international payment services provider said revenues in the year ending in March climbed 24.6% to $95.6 million from $76.7 million in a year ago period.

Net profit in the year soared 52% to $24.3 million compared to $16 million and diluted earnings per share jumped to 10.03 cents from 6.83 cents in the same period a year ago.