Australia's Stock Index Rises from 4-Year Low; Banks, BHP Climb

By Ian C. Sayson

Oct. 29 (Bloomberg) -- Australian stocks climbed, lifting the index from a four-year low, on speculation the global credit crunch will ease from a cut in U.S. interest rates later today, and after metal prices climbed for the second day.

Macquarie Group Ltd. and Australia & New Zealand Banking Group. Ltd. jumped more than 4 percent, leading financial stocks higher as investors boosted bets the U.S. Fed will cut interest rates. BHP Billiton Ltd. and Rio Group Ltd., the world's biggest and No. 3 mining companies, climbed more than 3.5 percent.

The S&P/ASX 200 Index rose 139.60 points, or 3.7 percent, to 3,933.80 as of 10:48 a.m. Sydney, after a five-day slump dragged it to its lowest close since Nov. 1, 2004. The S&P/ASX 200 Index futures contract due in December gained 3.8 percent to 3,946. The All Ordinaries Index climbed 138.50, or 3.7 percent, to 3,893.90.

Macquarie, Australia's biggest investment bank, soared 6.7 percent to A$30, heading for its biggest gain since Oct. 21. Australia & New Zealand Bank, the fourth-biggest bank by value on the exchange, climbed 4.4 percent to A$17.68

BHP gained 3.9 percent to A$26.34 while Rio rose 3.9 percent to A$70.94. A measure of six metals traded on the London Metal Exchange rose 3.7 percent, with copper up 2.7 percent and nickel rising 7.8 percent. Separately, Rio Chief Executive Officer Tom Albanese said the deceleration of China's economic growth is temporary and the nation's industrialization will continue ``apace'' after monetary stimulus takes effect.

The following is a list of companies whose shares are among the most active in Australian trading. Stocks symbols are in parentheses after company names.

U.S.-related stocks: Westfield Group (WDC AU), the world's biggest shopping mall owner by market value, gained 38 cents, or 2.6 percent, to A$14.78 after the Dow Jones Industrial Average posted its second-best point gain as the cheapest valuations in 23 years lured investors and increased commercial paper sales signaled credit markets are thawing.

James Hardie Industries NV (JHX AU), the biggest seller of home siding in the U.S., rose 15 cents, or 3.4 percent, to A$4.60, extending yesterday's 6 percent gain.

Aristocrat Leisure Ltd. (ALL AU), the world's second-largest maker of slot machines, sank A$1.42, or 26 percent, to A$4.08 after the company cut its annual profit forecast as much as 40 percent as casinos defer spending on new equipment amid a slump in consumer demand. The stock was also cut to ``sell'' from ``hold'' at Goldman Sachs JBWRE. Aristocrat is the biggest loser so far in the S&P/ASX 200 Index today.

Fairfax Media Ltd. (FXJ AU), Australia's second-biggest newspaper publisher, added 8 cents, or 4.3 percent, to A$1.95, its first gain in six days. The company it extended its debt maturity profile to 2013, by cutting debts maturing in 2010 to A$433 million ($282 million) from A$855 million.

Minara Resources Ltd. (MRE AU), an Australian nickel producer controlled by Glencore International AG, jumped 6.5 cents, or 19 percent, to 40.5 Australian cents, heading for its biggest gain since Sept. 25. The company said it plans to sell A$210 million of shares to existing holders for loan repayments after being unable to secure debt funding.

To contact the reporter on this story: Ian C. Sayson in Manila at isayson@bloomberg.net