5:00 PM Sydney – Australian stocks in a roller coaster ride closed higher tracking the gains in Tokyo markets. Crude oil eased by energy and resource stocks in Sydney rebounded led by the uranium miners. Billabong lowered its earnings outlook and Gindablie Metals revised Western Australia mine project cost 30% to $2.6 billion.
Stocks in Australia opened higher at the opening after markets in Japan soared by mid-day. However, in a roller coaster ride, the benchmark index declined after market pared gains in Tokyo.
The ASX 200 index increased 29.50 or 0.6% to 4,558.20 and All Ordinaries added 34.1 or 0.7% to 4,644.0.
The Australian dollar edged up to 99.38 U.S. cents and crude oil futures declined US$3.97 to US$97.21.
The benchmark index in Tokyo rebounded as much as 6% in the day but settled up 3.9% as investors avoided automakers and electric power utility companies. Construction companies traded higher for the second day in a row.
Crude oil declined for the third day after the worries of a nuclear meltdown receded in Japan.
Gindalbie Metals revised project cost 30% higher its Karara iron ore project in Western Australia to $2.6 billion and replaced its managing director Garret Dixon.
The company also hinted higher costs in the future as construction cost and resource costs increase in the next two years in Western Australia as more than ten mining companies plan to invest as much as $93 billion.
The company is still scheduled to ship its first iron ore before July this year and increase the shipment to 2 million tons by mid-2012.
Resource stocks were on the upswing and uranium miners rebounded after two days of losses.
BHP Billiton added 60 cents to $43.57 and Rio Tinto increased $1.53 to $78.94.
Uranium miner Energy Resources soared 10.3% or 73 cents to $7.80 and Extract Resources increased 46 cents to $8.46. Paladin Energy soared 13.5% to $3.70.
Energy sensitive stocks closed higher despite the ease in crude oil and natural gas prices. Woodside Petroleum increased 37 cents to $41.95 and Macarthur Coal added 59 cents to $10.95.
Banks were on the decline for the third day in a row. NAB added 7 cents to $24.35 and ANZ fell 1 cent to $22.62. Westpac declined 13 cents to $22.46.
Billabong International dropped as much as 6.5% before recovering to close down 3.2% to $7.25 after the retailer of surfwear said its full-year ending in June earnings will be lower between 2 cents and 6 cents.
The retailer closed 18 of its 44 stores in Japan and said that Japan accounts only 3% of pre-tax earnings and 4% of total sales but the March to June period is the peak selling season in Japan.