6:00 PM Sydney, Australia – Australian stocks gained and the Australian dollar advanced to 25-month high. David Jones declined 2% after the company said earnings will be lower than the upper end of the earnings. Telstra led the most active list in trading.
Stocks in Australia traded sideways and searched for direction as the Australian dollar advanced and the U.S. Federal Reserve indicated its willingness to stimulate the economy.
The ASX 200 Index added 0.17% or 7.7 to close at 4,625.20 and the Aussie dollar advanced 0.09% to 95.60 cents to U.S. dollar.
An index of leading economic indicators in Australia rose in July, after increasing share prices and dwelling approvals signaled the economic expansion of the nation will gain in the coming quarters.
The index gained 0.4% to 269.5, Westpac Banking Corp and the Melbourne Institute said Wednesday in Sydney. The index rose an annualized 6.8% in July, after gaining 7.4% in June.
Bluscope shareholders approved TPG Capital and the Carlyle Group takeover, the largest domestic leveraged buyout since 2007 acquisition of Coates Hire.
CFS Retail Property Trust was halted pending the announcement of a significant transaction following the Australian Financial Review’s report that the retail group is set to pounce on half the assets of the troubled DFO Chain in a deal worth A$600 million.
Telstra Corporation Ltd CFO John Stanhope said the negotiations with the government on the national broadband network are almost complete, and the talks were now focused on execution of the agreement.
IMF Australia Ltd, the country’s largest litigation funder, said Wednesday it filed a class action or a group lawsuit against Australia & New Zealand Banking Group Ltd in the federal court in Melbourne on behalf of 27,000 customers seeking to recoup A$50 million in bank charges, the so called exception fees.
David Jones Ltd, Australia’s second-biggest department store, affirmed its annual outlook after six month profit soared 7.6% on higher luxury sales.
Net income rose to A$70.3 million in the six months ended July 25 from A$65.4 million a year earlier. The company also said two stores due to open in the 12 months ending 2012 have been delayed between 18 and 24 months after mall owners deferred their development projects.
Salaries in Australia are set to rise some 4% this year, with some professional jobs paying as much as 25% more because of a tighter labor market, the Australian Financial Review said, citing recruiters.
Consumer debt rose to record levels in the June quarter after defaults on commercial leases increased in spite of improving economic conditions, a debt agency data showed.
Credit reporting and debt collection agency Dun & Bradstreet said the latest average value of referred debts, which edged above the $1,000 mark in June, is now at the highest level since 2006.
Queensland-based China Magnesium launched a $12 million IPO offering to help bring a magnesium plant in China back into production as demand for the commodity grows.
Geopacific Resources said it has found high gold, silver, zinc, lead and copper intersected beneath the known mineralization at Faddy’s gold deposit in Fiji.
BlackRidge Mining reported finding high grades up to 50 meters with 37.8% iron and 0.72% vanadium at the Unaly Hill project in Western Australia.
Gindalbie Metals confirmed it made “substantial progress” at the $1.98 billion Karara iron ore project, with the award of a $120 million contract to Downer EDI for the construction of a key power transmission line.
Australia and New Zealand Banking Group said Wednesday it will accelerate to open up to 20 branches in China after receiving regulatory approval to establish a subsidiary.