5:30 PM Sydney, Australia – Resource stocks and banks led the latest advance in Australia. Crude oil and gold gained. Arrium estimated additional cost savings of $60 million as the steelmaker restructure its distribution and operations. Newcrest Mining sold off its remaining stake in Evolution Mining.
Australian markets rebounded on technical grounds and resource stocks extended gains following higher closings in overnight trading in New York and in Europe.
Australian dollar closed at 70.51 U.S. cents and in stock trading turnover slumped to 743 billion shares worth $4.6 billion.
At close, the ASX 200 Index jumped 90.50 or 1.8% to 5,021.60 and the broader All Ordinaries Index increased 85.50 or 1.7% to 5,144.10.
In commodities trading, gold declined US$13 to US$1,113 an ounce and Brent crude future for immediate month delivery rose 54 cents to US$48.91 a barrel.
jumped 2.5% to 41 cents after the business processing company priced its stock at 40 cents.
The stock opened at 45 cents and closed at 41 cents.
Australian Stock Movers
increased 2.3% to 0.089 cents after the mining company plans to reduce the costs in its Whyalla Steelworks in South Australia of about $100 million in the next two years in addition to $60 million group-wide savings announced in August.
Arrium also plans to restructure its steel distribution and tube businesses and assess the additional opportunities for annualised cost savings of about $160 million.
jumped 2% to $18.35 after the diversified media company divested its U.S.-based digital education business Amplify to a management team supported by a group of private investors for undisclosed financial terms.
The publishing company laid off nationwide 800 employees and wrote-down $371 million in the Amplify business that sells tablets to schools and develops a digital curriculum.
Newcrest Mining Limited
slipped 1.2% to $12.55 after the gold miner sold off its remaining stake in Sydney-based rival Evolution Mining Ltd for about $125 million and used the proceeds to pay off debt which at June-end totalled $3.76 billion.
OZ Minerals Limited
surged 19.3% to $3.95 on a media report the U.S.-based private equity firm Kohlberg Kravis Roberts & Co LP may increase its offer to $3.60 for a 10% stake in the copper, gold and silver miner.
Yesterday, KKR & Co offered price of $3.55 per share.