Australia Stocks: Amcor, FKP, Macarthur, Murchison, Westpac

By Shani Raja

Oct. 2 (Bloomberg) -- The S&P/ASX 200 Index rose 3.40 points, or 0.1 percent, to 4,789 at 11:50 a.m. in Sydney. The broader All Ordinaries Index lost 4.50 points, or 0.1 percent, to 4,810, while the futures index expiring in December slipped 0.1 percent to 4,842.

Financial stocks: National Australia Bank Ltd. (NAB AU), the nation's largest lender, rallied 50 cents, or 2 percent, to A$26.20, the highest since Aug. 12. Westpac Banking Corp. (WBC AU), taking over rival St. George Bank Ltd., advanced 43 cents, or 1.9 percent, to A$23.68.

The U.S. Senate approved a $700 billion financial-rescue package aimed at reviving the U.S. economy and unfreezing international credit markets.

Amcor Ltd. (AMC AU), an Australian packaging company, surged 31 cents, or 5.4 percent, to A$6.01, the index's biggest gainer. Amcor raised prices for cardboard boxes by 12 percent, the Australian Financial Review reported today, citing Amcor's chief executive officer.

FKP Property Group (FKP AU), a retirement village operator, plunged 51 cents, or 14 percent, to A$3.09, the benchmark's biggest loser. Lend Lease Corp., the Australian developer building London's Olympic Village, yesterday said it had increased its stake in Babcock & Brown Communities Ltd. to 41 percent and had ceased talks with FKP.

Macarthur Coal Ltd. (MCC AU), the world's biggest exporter of pulverized coal, fell 70 cents, or 6.7 percent, to A$9.80, the lowest since Jan. 30. Iron ore, used to make steel, may rise less than forecast next year as steel mills reduce prices on faltering demand, Merrill Lynch & Co. Inc said. Gloucester Coal Ltd. (GCL AU) slumped 87 cents, or 10 percent, to A$7.75, the index's third-worst performer.

Minara Resources Ltd. (MRE AU), Australia's second-largest nickel producer, slumped 17 cents, or 10 percent, to A$1.45, second-biggest loser on the benchmark, after yesterday saying it's issuing 24,600 new shares.

Murchison Metals Ltd. (MMX AU), seeking to develop a A$3.5 billion ($2.8 billion) iron ore project with Japan's Mitsubishi Corp., dropped 10 cents, or 7.9 percent, to A$1.16, the lowest since Sept. 18. Merrill Lynch & Co. cut its rating to ``underperform.''

Santos Ltd. (STO AU) declined 41 cents, or 2.2 percent, to A$18.64, the lowest since Sept. 22. The company said it's in talks with the Australian Taxation Office aimed at changing its methodology for calculating tax relating to its off-market share buyback. Separately, crude oil fell 2.1 percent in New York.

Suncorp-Metway Ltd. (SUN AU), Australia's third-largest general insurer, rallied 44 cents, or 4.6 percent, to A$10.05, the second-best performer on the S&P/ASX 200. The company retained UBS AG to defend it from potential takeover approaches by its larger rivals, the Australian Financial Review reported in its speculative ``Street Talk'' column.

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