Australian Rates on Hold, Resource Stocks Lead 2% Rally

Marcus Jacob
17 Nov, 2015
New York City

Markets in Sydney jumped 2.3% as energy stocks surged after a spike in oil price overnight. Reserve Bank of Australia decided to leave the cash rate unchanged at 2%. AusNet net swung to profit.

[R]5:30 PM Sydney, Australia – Markets in Sydney jumped 2.3% as energy stocks surged after a spike in oil price overnight. Reserve Bank of Australia decided to leave the cash rate unchanged at 2%. AusNet net swung to profit.[/R]

Stock markets in Sydney closed higher on positive momentum from global markets and an increase in oil prices that boosted energy stocks and Reserve Bank left its key lending rate on hold.

Among energy stocks, Greencross surged 9.6%, Origin Energy soared 7.4% and Seven Group Holdings jumped 7.3%.

AusNet net swung to profit and agricultural products distributor Ruralco Holdings profit and revenues soared.

In economic news, the Reserve Bank of Australia decided to leave the cash rate unchanged at 2%.

At the close, the ASX 200 Index soared 114.40 or 2.3% to 5,118.20 and the broader All Ordinaries Index jumped 109.80 to 5,174.30.

The Australian dollar eased to 70.87 U.S. cents, while in stock trading turnover reached 809 million shares worth $5.2 billion.

In commodities trading, gold plunged US$12 to US$1,082 an ounce and Brent crude future for immediate month delivery edged up 7 cents to US$44.63 a barrel.

Australian Stock Movers

AusNet Services soared 6% to $1.50 after the diversified energy infrastructure provider said revenues in the first-half ending in September increased 10% from a year ago to $1.07 billion.

Net in the period swung to profit of $374.5 million compared to a loss of $4.9 million and diluted earnings per share swung to 10.73 cents from diluted loss per share of 0.14 cents in the same period a year ago.

Goodman Group jumped 4.2% to $5.99 after the commercial and industrial property developer reported total assets under management in the first-quarter increased $2 billion to $32.3 billion.

The company said development work is in progress of $3.4 billion across 78 projects and forecasted operating earnings per share for fiscal 2016 to jump 6% to 39.4 cents.

Ruralco Holdings Ltd plunged 5% to $3.40 after the agricultural products distributor stated sales in the year ending in September surged 18% from a year ago to $1.6 billion.

Net profit in the year jumped 32.4% to $18.8 million compared to $142 million and diluted earnings per share rose to 18.03 cents from 15.24 cents in the same period a year ago.

Thorn Group Ltd slipped 0.3% to $2 after the financial services provider stated revenues in the first-half ending in September soared 7.4% from a year ago to $160.9 million.

Net profit in the period increased 1.5% to $15.4 million compared to $15.2 million and diluted earnings per share edged up to 10.12 cents from 10.11 cents in the same period a year ago.