Australia Stocks: Macquarie DDR, ResMed, Sino Gold, Stockland

By Shani Raja

Aug. 6 (Bloomberg) -- The S&P/ASX 200 Index jumped 140.40 points, or 2.9 percent, to 4,960.80 at 2:05 p.m. in Sydney, the most since July 21. The broader All Ordinaries Index added 127.90, or 2.6 percent, to 5,009.90, while the futures index expiring in September gained 2.3 percent to 4,940.

Banks and retailers: Financial and retail stocks rallied after Australia's central bank signaled yesterday it may begin to cut borrowing costs as slowing economic growth cools inflation.

Harvey Norman Holdings Ltd. (HVN AU), Australia's largest furniture and electronics retailer, gained 25 cents, or 7.8 percent to A$3.46, the most in more than two years. David Jones Ltd. (DJS AU), the nation's No. 2 department store chain, rose 27 cents, or 7.7 percent, to A$3.76, the highest since May 16.

Commonwealth Bank of Australia (CBA AU), the nation's largest mortgage lender, advanced A$2.14, or 5.2 percent, to A$43.39, the most since April 21. National Australia Bank Ltd. (NAB AU), the largest by assets, climbed 91 cents, or 3.7 percent, to A$25.66.

Gold producers: Newcrest Mining Ltd. (NCM AU) slumped 83 cents, or 3.2 percent, to A$25.48, the lowest since September 2007. Sino Gold Mining Ltd. (SGX AU), owner of China's second- largest bullion mine, fell 5 cents, or 1.1 percent, to A$4.50, the lowest since June 11. St. Barbara Ltd. (SBM AU), aiming to become Australia's third-largest gold producer, lost 1 cent, or 4.8 percent, to 20 cents, the lowest since September 2005.

Gold fell below $900 an ounce for the first time since June in New York, as the dollar's rebound and plunging energy costs reduced the appeal of the precious metal as a hedge against inflation.

Asciano Ltd. (AIO AU), the Australian port and railroad operator fighting a bid from David Bonderman's TPG Capital, added 6 cents, or 1.2 percent, to A$5.10, the highest since Feb. 26. The company plans to sell shares and stakes in units to help fund expansions in Queensland state coal haulage and Saudi Arabia.

Just Group Ltd. (JST AU) rallied 7 cents, or 2.1 percent, to A$3.39, partly reversing yesterday's 7.8 percent decline. Premier Investments Ltd., controlled by Australian billionaire Solomon Lew, increased its stake in Just Group to exceed 50 percent, ensuring support from the target's board for a takeover bid.

Kagara Ltd. (KZL AU) added 16 cents, or 5.7 percent, to A$2.98, the most since July 21. The Australian supplier to Korea Zinc Co. may increase copper production from its Australian mines by 34 percent in the year to June 30, 2009, and more than double zinc output within two years, Executive Chairman Kim Robinson said.

Macquarie DDR Trust (MDT AU), an Australian real estate investment trust, soared 4 cents, or 14 percent, to 34 cents, the index's second-biggest gainer, after Developers Diversified Realty Corp. of the U.S. raised its stake in the company to 8.9 percent from 7.8 percent.

News Corp. (NWS AU), the media company controlled by Rupert Murdoch, rose 47 cents, or 2.9 percent, to A$16.57, the highest since June 27. News Corp. reported fourth-quarter profit that beat analysts' estimates on gains from DVDs and newspapers and the sale of its stake in Gemstar-TV Guide International Inc.

ResMed Inc. (RMD AU), the world's second-biggest maker of machines for breathing-related sleep disorders, soared 62 cents, or 15 percent, to A$4.64, the most in more than eight years and the benchmark's biggest gainer, after its fastest sales growth in seven quarters boosted net income 7.1 percent in the three months ended June 30.

Riversdale Mining Ltd. (RIV AU), an Australian coal-mining company, slumped for the third day this week, losing 65 cents, or 7.3 percent, to A$8.20, the index's biggest loser. The company announced plans Aug. 4 to issue an additional 100,000 ordinary shares at A$1 each.

Santos Ltd. (STO AU) dropped 69 cents, or 4.1 percent, to A$16.26, the lowest since April 30. Crude oil fell, closing below $120 a barrel for the first time in three months, amid signs demand may be curtailed by slowdowns in the U.S. and European economies.

Stockland (SGP AU) leapt 55 cents, or 13 percent, to A$4.95, the most since 1987, after its rating was raised to ``neutral'' from ``underperform'' by analyst David Burgess at Credit Suisse Group. The 12-month price target is A$5.23 per share.

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