Technical Bounce in Australian Indexes Supported by Asian Rally

Marcus Jacob
05 Oct, 2015
New York City

Australian market indexes soared 1.9% and the Aussie dollar traded above the U.S. 70 cents mark. Aurizon Holdings lowered its revenues estimate after disputes with several coal mines.

[R]5:30 PM Sydney, Australia – Australian market indexes soared 1.9% and the Aussie dollar traded above the U.S. 70 cents mark. Aurizon Holdings lowered its revenues estimate after disputes with several coal mines.[/R]

Australian market indexes soared and the Aussie dollar gained on a technical rebound in stocks in Sydney.

Market sentiment was also supported by higher closings in New York and in Europe in Friday’s trading. In addition, Asia-wide rally on Monday lifted indexes in Tokyo, Mumbai and Shanghai.

Australian dollar closed at 70.62 U.S. cents and in stock trading turnover plunged to 391 billion shares worth $2.7 billion.

At close, the ASX 200 Index jumped 98.50 or 1.9% to 5,150.50 and the broader All Ordinaries Index gained 94.90 to 5,184.10.

In commodities trading, gold soared US$22 to US$1,135 an ounce and Brent crude future for immediate month delivery gained 63 cents to US$48.76 a barrel.

Australian Stock Movers

Aurizon Holdings Limited gained 2.3% to $5.24 and the rail freight operator received notices from the coal companies that it may not receive some payments on its Wiggins Island Rail Project.

Subsidiary Aurizon Network and eight coal companies signed agreements for Aurizon Network to complete the $831 million rail project on time and below projected costs which Aurizon managed.

Aurizon said due to the disputes and higher than estimated costs may lower revenues by $27 million per year for the next 20 years.

Carsales.Com Ltd increased 1.4% to $10.07 after the online vehicle seller completed the acquisition of 65% stake in Mexico-based rival SoloAutos.

The online retailer also estimated profit for the year to jump 8% to $103.2 million.

Smartgroup Corporation Limited rose 1.3% to $3.06 after the salary packaging software solution provider plans to acquire 50% stake in Health-e Workforce Solutions for $6 million.