Australia Stocks: Alumina, Commonwealth Bank, Woodside, Santos

By Shani Raja

July 9 (Bloomberg) -- The S&P/ASX 200 Index rose 86.60 points, or 1.8 percent, to 5,019.50 at 2:10 p.m. in Sydney, the most since May 2. The broader All Ordinaries Index advanced 72, or 1.4 percent, to 5,094.40, while the futures index expiring in September jumped 1.2 percent to 5,018.

Financial stocks: National Australia Bank Ltd. (NAB AU), the nation's largest bank, gained A$1.11, or 4.2 percent, to A$27.46, the most since May 12. Commonwealth Bank of Australia rose 91 cents, or 2.2 percent, to A$41.64, overturning yesterday's 1.7 percent decline.

U.S. financial shares had their best gain in more than three months after JPMorgan's Jamie Dimon said buyers are returning to some types of mortgage products. Fannie Mae and Freddie Mac rebounded from their lowest levels in more than 13 years after a regulator said the mortgage-finance companies shouldn't have to raise more capital.

Alumina Ltd. (AWC AU), owner of 40 percent of the world's biggest producer of the material used to make aluminum, rose 25 cents, or 6.1 percent, to A$4.38, the most in almost five months. Partner Alcoa Inc. reported profit that topped analysts' estimates.

Asciano Group (AIO AU), Australia's largest port and rail operator, was the index's third-biggest gainer, rising 13 cents, or 4.8 percent, to A$2.85, the most since June 26. The company, which yesterday fell 19 percent, said it's made no decision about funding and that it was unaware of any reason for Tuesday's share slide.

Foster's Group Ltd. (FGL AU) dropped 7 cents, or 1.5 percent, to A$4.62, its lowest since August 2004. Coca-Cola Amatil Ltd. said it won't bid for Foster's A$10 billion ($9.5 billion) beer business, ending speculation of a joint venture with SABMiller Plc, the Australian Financial Review reported. Foster's beer business ``was not in good shape'' and did not represent ``compelling value,'' the newspaper cited Coca-Cola Amatil Chief Executive Officer Terry Davis as saying.

GPT Group (GPT AU) fell for a third day, dropping 10 cents, or 5.4 percent, to A$1.77, its lowest since 1984. The company's rating was cut to ``neutral'' from ``outperform'' by analyst David Burgess at Credit Suisse Group. GPT Group's credit rating was lowered yesterday by Standard & Poor's after the real estate investment trust cut its profit estimates 27 percent, citing deterioration in credit and property markets.

Santos Ltd. (STO AU) declined 20 cents, or 1.1 percent, to A$18.60, the lowest since May 16. Crude oil fell more than $5 a barrel, the biggest decline in three months, as signs that the global economy may slow prompted investors to sell commodities.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.