Australia shares rally, miners & oil firms lead, Billabong soars

SYDNEY Mon Nov 19, 2012 11:15am IST

An office worker talks on his phone as he looks the stock board at the Australian Securities Exchange (ASX) building in central Sydney June 15, 2012. REUTERS/Daniel Munoz

An office worker talks on his phone as he looks the stock board at the Australian Securities Exchange (ASX) building in central Sydney June 15, 2012.

Credit: Reuters/Daniel Munoz

Stocks

   

SYDNEY (Reuters) - Australian shares rallied 0.6 percent on Monday, led by mining and oil stocks, recovering ground after last week's losses on hopes the U.S. can resolve a federal budget wrangle over expiring tax cuts and imminent spending curbs.

The big mover of the day was surfwear company Billabong Ltd (BBG.AX), which surged 10.1 percent after it said one of its directors wanted to investigate a leveraged buyout of the firm. The move comes after potential buyers withdrew takeover offers last month.

The benchmark S&P/ASX 200 index .AXJO ended 24.6 points higher to 4,361.4. The benchmark fell 2.8 percent last week.

"<Markets are rallying> in response to a stronger market in the U.S. on Friday night," said Ric Spooner, senior trader at CMC markets.

Among miners, BHP Billiton Ltd (BHP.AX) climbed 0.9 percent while rival Rio Tinto Ltd edged up 0.3 percent. Necrest Mining Ltd (NCM.AX) jumped 1.8 percent.

Oil firms also gained after oil prices rose on Friday as a fire on a Gulf of Mexico platform and the escalating conflict between Israel and Gaza Palestinians added to supply concerns.

Woodside Petroleum Ltd (WPL.AX) rose 1.1 percent while Caltex (CTX.AX) inched up 0.1 percent.

Santos (STO.AX) climbed 3.9 percent after it announced a gas discovery at its Crown-1 exploration well, located in the Browse Basin off Western Australia.

New Zealand's benchmark NZX 50 index .NZ50 slipped 0.1 percent, or 5.2 points to 3,942.6.

(Reporting by Thuy Ong; Editing by Eric Meijer)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Markets

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage