Australia Stocks: Alumina, Aquarius, Babcock, Foster's, Sino

By Shani Raja

Sept. 26 (Bloomberg) -- The S&P/ASX 200 Index rose 21.40 points, or 0.4 percent, to 4,948.80 at 11:45 a.m. in Sydney. The broader All Ordinaries Index added 19.20 points, or 0.4 percent, to 4,980, while the futures index expiring in December advanced 0.3 percent to 5,010.

Gold producers: Sino Gold Mining Ltd. (SGX AU) slumped 41 cents, or 8.5 percent, to A$4.39, the second-biggest loser on the benchmark. St. Barbara Ltd. (SBM AU), aiming to become Australia's third-largest gold producer, dropped 1.5 cents, or 4.2 percent, to 34.5 cents, the most since Sept. 16.

Gold futures for December delivery fell 1.5 percent to $882 an ounce in New York on speculation a U.S. plan to ease the credit crunch will stabilize financial markets and reduce the appeal of the precious metal as a haven.

Financial stocks: National Australia Bank Ltd. (NAB AU), the nation's largest lender by assets, advanced 35 cents, or 1.4 percent, to A$25.34. Commonwealth Bank of Australia (CBA AU) gained 64 cents, or 1.5 percent, to A$44.69, the highest since Sept. 8.

U.S. stocks advanced, led by banks, as Congress neared an agreement on a $700 billion bailout of financial institutions to help revive lending and credit markets. The Standard & Poor's 500 Index increased 23.31 points, or 2 percent, to 1,209.18.

Alumina Ltd. (AWC AU), partner in the world's biggest producer of the material used to make aluminum, slumped 38 cents, or 9.9 percent, to A$3.45, the index's worst performer. The company sold A$266 million ($223 million) in shares to individual investors to help fund an expansion in Brazil.

Aquarius Platinum Ltd. (AQP AU), a producer of the metal in South Africa and Zimbabwe, fell for the third day, plunging 60 cents, or 7.6 percent, to A$7.25, the lowest in almost two years and the benchmark's third-biggest loser.

Platinum and palladium dropped for a second day in three on concern that demand for the metals used in car and truck parts may slow as orders for U.S. durable goods fell more than twice as much as forecast last month.

Australian Infrastructure Fund (AIX AU), which invests in transport infrastructure, added 8 cents, or 3.6 percent, to A$2.32, the highest since Sept. 17. The company said it expects Perth Airport to benefit from Western Australia's resources boom, while passenger growth at domestic airports across the country is anticipated to continue growing.

Babcock & Brown Ltd. (BNB AU), a manager of infrastructure assets including power stations, rose for the sixth straight day, soaring 26 cents, or 11 percent, to A$2.63, the index's best performer. The company's shares were boosted by Australia's ban on short selling and takeover speculation.

Foster's Group Ltd. (FGL AU) rose 30 cents, or 5.6 percent, to A$5.65, the most since April 2. Deutsche Bank AG bought shares of Foster's and now owns 5.3 percent of the company, amid speculation Australia's largest brewer may be acquired. Separately, Foster's named Ian Johnston as chief executive officer as the company continues to review its global wine unit.

Pan Australian Resources Ltd. (PNA AU), an Australian copper and gold mining company, rallied 4 cents, or 6.1 percent, to 60 cents, the most in more than a month. Managing Director Gary Stafford told Bloomberg TV yesterday that the company was starting to see Chinese demand return.

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