Australian Stocks Rebound, Stockland Net Soars on Housing Boom

Marcus Jacob
19 Aug, 2015
New York City

Australian stocks rebounded for the second day in a row after bargain hunters searched for values. In active trading, banks led the market index advance. Stockland said housing boom supported earnings rise. Woodside Petroleum slashed its dividend. Arrium swung to a quarterly loss.

[R]5:30 PM Sydney, Australia – Australian stocks rebounded for the second day in a row after bargain hunters searched for values. In active trading, banks led the market index advance. Stockland said housing boom supported earnings rise. Woodside Petroleum slashed its dividend. Arrium swung to a quarterly loss.[/R]

Bargain hunters lifted Australian stocks for the second day in a row in active trading.

Australian dollar closed at 73.44 U.S. cents and in stock trading turnover dropped to 770 million shares worth $5.6 billion.

At close, the ASX 200 Index jumped 77.10 or 1.5% to 5,380.20 and the broader All Ordinaries Index gained 70.40 to 5,379.80.

In commodities trading, gold unchanged at US$1,119 an ounce and Brent crude slid 0.14 cents to close at US$48.67 a barrel.

IPO

Paradigm Biopharmaceuticals Ltd soared 5.7% to 37 cents after the biopharmaceutical company priced its stock at 35 cents.

The stock opened at 40 cents and closed at 37 cents.

Australian Stock Movers

Arrium Ltd declined 4% to 12 cents after the iron ore producer said revenues in the year ending in June dropped 9.2% to $5.90 billion from $6.50 billion a year ago period.

Net in the quarter swung to a loss of $1.92 billion compared to profit of $205.4 million and diluted loss per share swung to a 75.17 cents from diluted earnings per share of 14.05 cents in the same period a year ago.

Charter Hall Group jumped 3.3% to $4.68 after the commercial properties developer agreed to acquire four retail and industrial properties from the country’s largest automotive retailer, Automotive Holdings Ltd in a sale and leaseback agreement for about $140 million.

Federation Centres Ltd increased 2.2% to $2.80 after the property developer reported total revenues in the year ending in June soared 59.1% to $1.33 billion from $834.7 million in a year ago period.

Net income in the quarter surged 68.7% to $675.1 million compared to $400.1 million and diluted earnings per share increased to 25.21 cents from 16.53 cents in the same period a year ago.

Mount Gibson Iron Limited slumped 2.7% to 18 cents after the hematite iron ore producer said revenues in the year ending in June tumbled 63.9% to $324.6 million form $898 million a year ago period.

Net in the quarter swung to a loss of $911.4 million compared to profit of $96.4 million and diluted loss per share swung to a 83.56 cents from diluted earnings per share of 8.83 cents in the same period a year ago.

Seven West Media Ltd gained 0.6% to 82 cents after the media and entertainment company reported revenues in the year ending in June fell 3.8% to $1.77 billion from $1.84 billion a year ago period.

Net in the quarter swung to a loss of $1.89 billion compared to profit of $152.1 million and diluted loss per share swung to a 181.1 cents from diluted earnings per share of 12.6 cents in the same period a year ago.

Stockland Corporation Ltd increased 0.5% to $4.18 after the mall, industrial and residential assets developer said revenues in the year ending in June soared 8.8% to $2.11 billion from $1.94 billion a year ago period.

Net income in the quarter surged 71.3% to $903 million compared to $527 million and diluted earnings per share jumped to 38.5 cents from 22.7 cents in the same period a year ago.