Markets

Australia shares jump over 2pc on Central Banks euro debt action

SYDNEY : Australian stocks pushed 2.1 percent higher in morning trade on Friday as coordinated central bank action worke

Published September 16, 2011 Updated September 16, 2011 04:24am

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By Shoaib Ur Rehman

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The market also found support from overseas action as US stocks rose for the fourth straight day, with banks outperforming other sectors, while Tokyo shares were also up nearly 2 percent.

Yet, even with gains made over the last several days the benchmark is on track for a second week of losses with a decline of 1.2 percent.

"It's a very, very impressive start (for the day), I think this is about the third day in a row that we've looked pretty flash and we are continuing on the coat tails of what's going on in Europe, as we slavishly do," said Michael Heffernan, Strategist Austock Group

"It's like trying to split hairs about which sectors are doing the best, because they are all doing well," he added

Australia's top four banks followed overnight leads from the US, with Westpac up 3.3 percent to A$20.03 at 0130 GMT

The benchmark S&P/ASX 200 index jumped 85.2 points, or 2.1 percent, to 4,158.1 by 0130 GMT.

New Zealand's benchmark NZX 50 index rose 0.7 percent to 3,294.4 in morning trade.

Sundance Resources rose 5.8 percent in early trade to A$0.46 after media reports that China's Hanlong Mining will continue with its A$1.3 billion bid, despite an investigation by the market regulator ASIC into alleged insider trading by Hanlong executives.

Uranium producer Paladin Energy Ltd stocks gained 5.4 percent to A$1.65 at 0132 GMT after announcing production had restarted at its Kayelekera mine in Malawi as scheduled following upgrade work.

Steelmaker OneSteel rose 6.4 percent.

STOCKS ON THE MOVE

Commonwealth Bank of Australia rose 2.1 percent in morning trade. CBA announced on Friday it had acquired top Credit Suisse banker Robert Jesudason as its group head of strategy, in a move that could indicate CBA will increase its focus on takeover opportunities in Asia.

WorleyParsons rose 4.3 percent to A$26.88 after announcing a A$150 million contract from Brazil's MMX.

Asciano Group gained 4.4 percent to A$1.58 after its investor presentation on Thursday.

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