Australian Stocks Up 1.4%

123jump.com Staff
30 Nov, 2007
New York City

Australian stocks edged higher on resource and energy stocks. ASX 200 increased 1.4% or 88.60 to close at 6,533.10. Murchison Metals chairman indicated that the company is still interested in Midwest Corp and may revise the offer. Symbion Health added 2% after it said that earnings for the year are likely to rise 10%. Of the ASX 200 index stocks, Centro Properties led the decliners with a fall of 3.2%.

[R]5:00AM New York, 9:00PM Sydney - The Australia index gained 1.4% after led by energy and resource stocks.[/R]

ASX 200 index gained 1.4% or 88.60 to close at 6,533.10. BHP Billiton was up 2.3% and Woodside added 2.1% after oil and copper advanced.

Preliminary market turnover was 2.35 billion shares worth A$11.55 billion, with 716 stocks rising, 538 falling and 356 unchanged.

The top traded stock was Flinders Diamonds with 155.58 million shares changing hands worth A$13.82 million. Murchison Metals chairman Paul Kopejtka today told shareholders during the company''s annual general meeting that they had not ruled out offering a better deal to secure its takeover bid for Midwest Corporation.

Murchison is offering one of its shares for 1.08 Midwest shares. Murchison''s board is expected to discuss its options in the next few days. Mr Kopejtka said he could either choose to wait for the bid to close on December 6, extend the offer date, or extend the offer date with a revised bid. Murchison closed up 3.1%.

Health care company, Symbion Health is expecting a 10% increase in its full year earnings. Chairman Paul McClintock today also warned shareholders at the company''s annual general meeting that 20% stakeholder Primary Health was continuing to try to disrupt its proposed merger transaction with Healthscope.

Primary said it would declare A$2.65 billion offer for Symbion unconditional if it received at least 50.1% acceptances by December 10. McClintock said Primary Health Care''s objective appeared to be to acquire Symbion Health for the lowest possible price and to maximize value for its shareholders at the expense of Symbion Health.

Primary had previously used its voting power to block an early merger plan put forward by Symbion and Healthscope. It had also recently instituted legal action against Symbion and its directors.

Symbion today also said it had performed well in the first quarter of current fiscal year and expected to grow annual earnings before interest and tax (EBIT) by at least 10%. Symbion''s shares rose 2.3%.

The dollar closed stronger today after struggling to maintain a sustained rally after the re-ignition of fears of more sub-prime mortgage losses dented momentum. At the close the dollar was trading at US$0.8862/65, up from yesterday''s close of US$0.8828/34.

Of the ASX 200 index shares, Bendigo Bank Limited led the gainers with a rise of 7.3% followed by increases in Hills Industries and Oxiana Limited at 6.5%, in Sally Malay Mini of 6.4%, and in Worleyparsons of 5.8%.

Of the ASX 200 index stocks National Australia Bank led the decliners with a fall of 2% followed by losses in Paperlinx Limited of 2.02%, Challenger Finance by 2.6%, in Transfield Services by 3.1%, and in Centro Properties of 3.2%.

In the other stocks Rio Tinto gained 2.3%.

In the banking sector Australia and New Zealand Bank added 1.8%, Commonwealth Bank of Australia put on 2.3%, Westpac advanced 2.6%, Macquarie Group was higher at 1.5% and Babcock & Brown gained 1.5%.

Energy stocks gained, Santos added 2.1% and Oil Search gained 2%. In the gold sector Lihir added 1.3% but Newcrest was lower at 0.7%.

The retail sector closed stronger, Woolworths added 2.8%, Wesfarmers was up 2.6%, David Jones was higher at 2.3% and Harvey Norman gained 0.4%.

The media stocks were mixed, Seven Network gained 1.3%, News Corporation added 0.1%, and Fairfax put on 0.2% after indicating that its revenue growth in the first four months of fiscal 2008 was in ""the mid-single digits''''. Publishing and Broadcasting shed 1.2%.

Gaming company Tattersall''s rallied 2.8% despite saying that new regulations that cap poker machine numbers would make it difficult to beat last year''s operating profit.

Telstra Corp dropped 0.6% to $3.15, and Qantas gained 2.1%.