Australia Stocks Rise, Led by BHP, on Higher Oil, Metals Prices

By Shani Raja

Aug. 14 (Bloomberg) -- Australia's S&P/ASX 200 Index rallied, led by BHP Billiton Ltd., the world largest mining company, after metal prices surged and oil had its biggest one-day gain in more than two weeks.

The benchmark index rose 86.50, or 1.8 percent, to 5,038.10 at 12:45 p.m. in Sydney, the most in more than a week. Six of the top-10 gainers on the index were mining companies as measure of materials stocks rose 5 percent.

BHP advanced A$1.83, or 5 percent, to A$38.59, the most in three months. Rio Tinto Group, the world's third-largest mining company, gained A$6.29, or 5.6 percent, to A$117.89, the most since the end of January. Mincor Resources NL, Australia's third- largest publicly traded nickel producer, rallied 17 cents, or 11 percent, to A$1.71, the most since September 2007.

A gauge of six metals traded on the London Metal Exchange rose 3.2 percent as zinc advanced 2.2 percent, copper 3.9 percent and nickel 7.7 percent.

Woodside Petroleum Ltd., Australia's second-largest oil and gas producer, added A$2.83, or 5.4 percent, to A$54.94, the most since May 19. Santos Ltd. added 85 cents, or 5 percent, to A$17.85, the most since May 29.

Crude oil futures rose more than $2 a barrel in New York yesterday after a U.S. Energy Department report showed a bigger- than forecast decline in inventories of gasoline as refiners shut units and imports fell. Crude oil for September delivery rose 90 cents, or 0.8 percent, to $116.90 a barrel today.

The following companies were among the biggest winners and losers on the Australian stock exchange.

ASX Ltd. (ASX AU), operator of Australia's largest stock exchange, advanced A$1.28, or 3.7 percent, to A$36.08. ASX posted a 6.1 percent gain in second-half profit on increased trading volume and new share listings.

Beach Petroleum Ltd. (BPT AU), partner of Arrow Energy Ltd. in coal-seam gas licenses in Australia's Queensland state, rose 8 cents, or 8.7 percent, to A$1, the most since May 5. Beach allocated a 1-for-10 bonus option to shareholders to ``reward'' their loyalty.

Computershare Ltd. (CPU AU), the world's biggest share registrar, declined 47 cents, or 5 percent, to A$8.99, the lowest since Aug. 5. ABN Amro Holding NV cut the company's rating to ``hold'' from ``buy.''

David Jones Ltd. (DJS AU), Australia's second-largest department store chain, gained 31 cents, or 8.5 percent, to A$3.96, the most since Jan. 24. The company said second-half earnings rose more than forecast as it cut inventory holdings to lower costs.

Equinox Minerals Ltd. (EQN AU), the developer of Africa's largest copper mine, soared 43 cents, or 14 percent, to A$3.59, the most since Jan. 23. Goldman Sachs JBWere Pty said the stock will rebound following a slump in mining stocks. Goldman has a A$7 price target on the stock and kept its `Conviction Buy' rating.

King Island Scheelite Ltd. (KIS AU), developing a tungsten mining project in Australia, tumbled 5 cents, or 13 percent, to 35 cents, the lowest since 2004. The company invited shareholders to buy new shares at a discount with ``no guarantee in respect of return of capital, payment of dividends or the future value of the new shares.''

Korab Resources Ltd. (KOR AU), a gold and uranium explorer, rose 3 cents, or 28 percent, to 12 cents, the most in almost two years. The company said it planned to give shareholders free shares in Uranium Australia Ltd., which houses most of Korab's uranium assets, and proposed a spin-off of the subsidiary.

Maryborough Sugar Factory Ltd. (MSF AU) gained 15 cents, or 7.7 percent, to A$2.10, the most since July 18. The Australian producer and refiner of raw sugar began merger talks with Tully Sugar Ltd. as it seeks to expand into far north Queensland state.

Paladin Energy Ltd. (PDN AU), an Australian producer of uranium in Namibia, gained 45 cents, or 9.1 percent, to A$5.42, the most since May 19. Uranium miners surged in Canadian trading yesterday on speculation renewed flooding at Cameco Corp.'s Cigar Lake mine, the world's biggest untapped uranium deposit, may delay the start of production there and boost prices of the metal.

St. Barbara Ltd. (SBM AU), aiming to become Australia's third-largest gold producer, rose 2 cents, or 12 percent, to 23 cents, the fourth-biggest gainer on the index. Gold futures for December delivery rose $16.90, or 2.1 percent, $831.50 an ounce on the Comex division of the New York Mercantile Exchange, after earlier touching $836.40. Gold's rally is the biggest percentage gain for a most-active contract since June 26.

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