Australian Stocks Climb to a Record High, Led by Commonwealth
Australian stocks rose to a record high as the central bank refrained from raising interest rates. Commonwealth Bank of Australia and Woolworths Ltd. led gains among stocks that rely on domestic demand.
Coles Group Ltd. jumped after Wesfarmers Ltd. and buyout firms led by Pacific Equity Partners offered A$19.7 billion ($16 billion) in a record takeover for an Australian company.
BHP Billiton led resources shares higher after copper prices climbed to a five-month high in New York.
``There are no weak links in this market,'' said Michael Birch, who helps manage A$160 million at Wallace Funds Management in Sydney. ``Commodities prices are still driving mining shares, takeover deals show no sign of abating, and the central bank's interest rate decision definitely took some of us by surprise.''
The S&P/ASX 200 Index added 65.30, or 1.1 percent, to 6078.70 as of 1:02 p.m. in Sydney. About 13 stocks gained for every six that fell. The index is heading for a record close and has recouped all of its 6.5 percent slide since peaking at 6044.00 on Feb. 26.
New Zealand's NZX 50 Index rose 0.2 percent to 4184.99 as of 3:02 p.m. in Wellington.
Commonwealth Bank, the nation's second-biggest lender, added 49 cents, or 1 percent, to A$50.82. Woolworths, the biggest retailer, rose 43 cents, or 1.6 percent, to A$27.68.
Steady Rates
The Reserve Bank of Australia today kept its benchmark interest rate unchanged at a six-year high 6.25 percent as it awaits an inflation report later this month that economists say may force it to raise borrowing costs in May. Thirteen of 25 economists surveyed by Bloomberg News expected no change.
While the economists in Bloomberg's survey were almost evenly split over today's decision, currency and futures traders had expected an increase. Investors' expectations for economic growth may be boosted by the central bank's decision. Higher borrowing costs damp consumer spending and curb lending.
Coles, the nation's second-biggest retailer, jumped 82 cents, or 5.1 percent, to A$16.93. Wesfarmers, Australia's biggest home- improvement retailer, is offering A$16.47 a share in cash or stock, the company said, or 8 percent more than a Kohlberg, Kravis Roberts & Co.-led bid that Coles rejected in October.
Shares of Coles are now above the price of Wesfarmers takeover offer on expectations it may not be enough to win support.
Wesfarmers climbed A$1.37, or 3.7 percent, to A$38.28.
Higher Metals
BHP, the world's biggest mining company by market value and production, climbed 53 cents, or 1.8 percent, to A$30.62. Rio Tinto Group, the second-biggest by market value and third by production, rose A$1.80, or 2.3 percent, to A$80.70.
A measure of six metals traded on the London Metal Exchange, including copper and zinc, jumped 4.2 percent, the biggest gain since Feb. 13. Copper climbed 3.8 percent and nickel surged 6.6 percent. In New York copper jumped 4.3 percent in New York to a five-month high.
The S&P/ASX 200 Index's futures contract for June added 0.7 percent to 6115. The broader All Ordinaries Index rose 1.1 percent to 6060.50.
The following shares also rose or fell. The stock symbols are in brackets after the company names.
Australian stocks:
Austar United Communications Network Ltd. (AUN AU), added 7.5 cents, or 4.6 percent, to A$1.70. The pay-television company controlled by U.S. billionaire John Malone, said it has received ``preliminary, incomplete and highly conditional'' approaches.
Bank of Queensland Ltd. (BOQ AU), which has offered A$2.5 billion ($2 billion) for regional Australian rival Bendigo Bank Ltd., gained 20 cents, or 1.2 percent, to A$17.54. The company said first-half profit rose 21 percent to A$48.4 million after it opened new branches and sold more home loans.
CSL Ltd. (CSL AU) gained A$1.31, or 1.6 percent, to A$84.81. The drugmaker asked for U.S. approval of a seasonal flu vaccine in the U.S., said Paul Perreault, an executive vice president for the company's CSL Biotherapies unit. CSL is seeking priority review, which may gain clearance for the shots by Sept. 30. That would allow sales as early as October, he said.
Nexus Energy Ltd. (NXS AU) jumped 9 cents, or 10 percent, to 95 cents. The oil and gas explorer said it found more natural gas than expected at a well on the Crux field off northwestern Australia.
QBE Insurance Group Ltd. (QBE AU), the world's best- performing insurance stock the past year excluding China, rose 57 cents, or 1.8 percent, to A$32.53. The company reiterated full- year profit will rise at least 20 percent.
Segue Resources Ltd. (SEG AU) gained 11.5 cents, or 19 percent, to 71.5 cents. The company said it found ``significant'' nickel deposits at its Pardoo project in Western Australia state.
New Zealand stocks:
Guinness Peat Group Plc (GPG NZ), a London-based investor which owns 16 percent of Premier Investments Ltd., added 6 cents, or 2.6 percent, to NZ$2.37. GPG gained 1.8 percent yesterday after Premier agreed to sell its 5.9 percent stake in Coles Group Ltd. Premier gained NZ$1.1 billion from the sale and is likely to return capital to shareholders, the Australian said, citing Chairman Ron Brierley.
ING Property Trust (ING NZ), New Zealand's third-largest publicly traded property investor, dropped 4 cents, or 3 percent, to NZ$1.30. ING said it may spend NZ$200 million ($144 million) to acquire properties in Japan as New Zealand's high prices limit returns.
Kermadec Property Fund (KPF NZ), a New Zealand real estate investor, added 2 cents, or 1.9 percent, to a three-month high of NZ$1.10. The fund's property assets gained about NZ$8.8 million in value in the four months ended March 31, ahead of the NZ$3.6 million gain forecast in its prospectus. That boosts the fund's net tangible asset value by about 9 cents a share to NZ$1.15, the company said.
Michael Hill International Ltd. (MHI NZ), New Zealand's largest jewelry chain, jumped 30 cents, or 3.2 percent, to a record NZ$9.60. The company will expand into the U.S. and United Kingdom once its Canadian operations are established and making a profit, the New Zealand Herald reported, citing Chief Executive Officer Mike Parsell.
Telecom Corp. (TEL NZ), New Zealand's largest telephone company, dropped 6 cents, or 1.2 percent, to NZ$4.86. Telecom may give shareholders less than half the NZ$2.24 billion from the sale of its Yellow Pages unit because of costs to expand in Australia and build faster networks. It may return NZ$1.1 billion from the sale, probably in a stock buyback, according to the median estimate of 10 analysts in a Bloomberg News survey.
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Coles Group Ltd. jumped after Wesfarmers Ltd. and buyout firms led by Pacific Equity Partners offered A$19.7 billion ($16 billion) in a record takeover for an Australian company.
BHP Billiton led resources shares higher after copper prices climbed to a five-month high in New York.
``There are no weak links in this market,'' said Michael Birch, who helps manage A$160 million at Wallace Funds Management in Sydney. ``Commodities prices are still driving mining shares, takeover deals show no sign of abating, and the central bank's interest rate decision definitely took some of us by surprise.''
The S&P/ASX 200 Index added 65.30, or 1.1 percent, to 6078.70 as of 1:02 p.m. in Sydney. About 13 stocks gained for every six that fell. The index is heading for a record close and has recouped all of its 6.5 percent slide since peaking at 6044.00 on Feb. 26.
New Zealand's NZX 50 Index rose 0.2 percent to 4184.99 as of 3:02 p.m. in Wellington.
Commonwealth Bank, the nation's second-biggest lender, added 49 cents, or 1 percent, to A$50.82. Woolworths, the biggest retailer, rose 43 cents, or 1.6 percent, to A$27.68.
Steady Rates
The Reserve Bank of Australia today kept its benchmark interest rate unchanged at a six-year high 6.25 percent as it awaits an inflation report later this month that economists say may force it to raise borrowing costs in May. Thirteen of 25 economists surveyed by Bloomberg News expected no change.
While the economists in Bloomberg's survey were almost evenly split over today's decision, currency and futures traders had expected an increase. Investors' expectations for economic growth may be boosted by the central bank's decision. Higher borrowing costs damp consumer spending and curb lending.
Coles, the nation's second-biggest retailer, jumped 82 cents, or 5.1 percent, to A$16.93. Wesfarmers, Australia's biggest home- improvement retailer, is offering A$16.47 a share in cash or stock, the company said, or 8 percent more than a Kohlberg, Kravis Roberts & Co.-led bid that Coles rejected in October.
Shares of Coles are now above the price of Wesfarmers takeover offer on expectations it may not be enough to win support.
Wesfarmers climbed A$1.37, or 3.7 percent, to A$38.28.
Higher Metals
BHP, the world's biggest mining company by market value and production, climbed 53 cents, or 1.8 percent, to A$30.62. Rio Tinto Group, the second-biggest by market value and third by production, rose A$1.80, or 2.3 percent, to A$80.70.
A measure of six metals traded on the London Metal Exchange, including copper and zinc, jumped 4.2 percent, the biggest gain since Feb. 13. Copper climbed 3.8 percent and nickel surged 6.6 percent. In New York copper jumped 4.3 percent in New York to a five-month high.
The S&P/ASX 200 Index's futures contract for June added 0.7 percent to 6115. The broader All Ordinaries Index rose 1.1 percent to 6060.50.
The following shares also rose or fell. The stock symbols are in brackets after the company names.
Australian stocks:
Austar United Communications Network Ltd. (AUN AU), added 7.5 cents, or 4.6 percent, to A$1.70. The pay-television company controlled by U.S. billionaire John Malone, said it has received ``preliminary, incomplete and highly conditional'' approaches.
Bank of Queensland Ltd. (BOQ AU), which has offered A$2.5 billion ($2 billion) for regional Australian rival Bendigo Bank Ltd., gained 20 cents, or 1.2 percent, to A$17.54. The company said first-half profit rose 21 percent to A$48.4 million after it opened new branches and sold more home loans.
CSL Ltd. (CSL AU) gained A$1.31, or 1.6 percent, to A$84.81. The drugmaker asked for U.S. approval of a seasonal flu vaccine in the U.S., said Paul Perreault, an executive vice president for the company's CSL Biotherapies unit. CSL is seeking priority review, which may gain clearance for the shots by Sept. 30. That would allow sales as early as October, he said.
Nexus Energy Ltd. (NXS AU) jumped 9 cents, or 10 percent, to 95 cents. The oil and gas explorer said it found more natural gas than expected at a well on the Crux field off northwestern Australia.
QBE Insurance Group Ltd. (QBE AU), the world's best- performing insurance stock the past year excluding China, rose 57 cents, or 1.8 percent, to A$32.53. The company reiterated full- year profit will rise at least 20 percent.
Segue Resources Ltd. (SEG AU) gained 11.5 cents, or 19 percent, to 71.5 cents. The company said it found ``significant'' nickel deposits at its Pardoo project in Western Australia state.
New Zealand stocks:
Guinness Peat Group Plc (GPG NZ), a London-based investor which owns 16 percent of Premier Investments Ltd., added 6 cents, or 2.6 percent, to NZ$2.37. GPG gained 1.8 percent yesterday after Premier agreed to sell its 5.9 percent stake in Coles Group Ltd. Premier gained NZ$1.1 billion from the sale and is likely to return capital to shareholders, the Australian said, citing Chairman Ron Brierley.
ING Property Trust (ING NZ), New Zealand's third-largest publicly traded property investor, dropped 4 cents, or 3 percent, to NZ$1.30. ING said it may spend NZ$200 million ($144 million) to acquire properties in Japan as New Zealand's high prices limit returns.
Kermadec Property Fund (KPF NZ), a New Zealand real estate investor, added 2 cents, or 1.9 percent, to a three-month high of NZ$1.10. The fund's property assets gained about NZ$8.8 million in value in the four months ended March 31, ahead of the NZ$3.6 million gain forecast in its prospectus. That boosts the fund's net tangible asset value by about 9 cents a share to NZ$1.15, the company said.
Michael Hill International Ltd. (MHI NZ), New Zealand's largest jewelry chain, jumped 30 cents, or 3.2 percent, to a record NZ$9.60. The company will expand into the U.S. and United Kingdom once its Canadian operations are established and making a profit, the New Zealand Herald reported, citing Chief Executive Officer Mike Parsell.
Telecom Corp. (TEL NZ), New Zealand's largest telephone company, dropped 6 cents, or 1.2 percent, to NZ$4.86. Telecom may give shareholders less than half the NZ$2.24 billion from the sale of its Yellow Pages unit because of costs to expand in Australia and build faster networks. It may return NZ$1.1 billion from the sale, probably in a stock buyback, according to the median estimate of 10 analysts in a Bloomberg News survey.
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