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

REUTERS SHOWCASE

Adani Project

Adani Project

Australia approves Adani's $16 bln Carmichael coal project  Full Article 

India-U.S. Talks

India-U.S. Talks

Kerry to woo Modi's India, but quick progress unlikely  Full Article 

Argentina Debt Default

Argentina Debt Default

Insight - Jaded Argentines brace for looming debt default   Full Article 

Anti-trust Probe

Anti-trust Probe

Microsoft targeted in apparent Chinese anti-trust probe  Full Article 

Mideast Conflict

Mideast Conflict

Israel strikes house of Hamas Gaza leader, digs in for long fight  Full Article 

Stiff Competition

Stiff Competition

China brands beat global rivals with tea toothpaste & pickled plums  Full Article 

Rising From Ashes

Rising From Ashes

With PlayStation network, Sony goes back to the future in search of revival  Full Article 

Reuters India Mobile

Reuters India Mobile

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