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)

  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

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