Australia Stocks: ABB, AWB, BHP, FKP, OM Holdings, Timbercorp

By Shani Raja

Nov. 28 (Bloomberg) -- The S&P/ASX 200 Index rose 59.40 points, or 1.7 percent, to 3,647.40 at 11:10 a.m. in Sydney, the highest since Nov. 17. The broader All Ordinaries Index advanced 57.10 points, or 1.6 percent, to 3,585.30, while the futures index expiring in December gained 2.4 percent to 3,655.

Oil and mining stocks: BHP Billiton Ltd. (BHP AU), the world’s largest mining company, rallied A$1.51, or 5.2 percent, to A$30.31, the highest since Nov. 5. Rio Tinto Group (RIO AU) gained A$2.66, or 6.2 percent, to A$45.51. Woodside Petroleum Ltd. (WPL AU) rose A$1.33, or 3.9 percent, to A$35.33.

China, the biggest user of industrial metals and the world’s second-biggest energy-consuming country, this week cut interest rates the most in 11 years to ward off an economic slump.

AWB Ltd. (AWB AU) rallied 20 cents, or 6.3 percent, to A$3.39, the highest since May 21. Australia’s largest wheat exporter said it’s in talks with ABB Grain Ltd. (ABB AU) for a possible merger to create Australia’s biggest wheat and barley exporter. ABB surged A$1.14, or 18 percent, to A$7.63, the benchmark’s third-best performer.

FKP Property Group (FKP AU), a Brisbane-based retirement village operator, rose 10 cents, or 15 percent, to 75 cents, the most since Oct. 17. The company said it completed an entitlement offer of up to 101 million stapled securities. The proceeds will be used to improve its balance sheet, FKP said in a statement.

Gunns Ltd. (GNS AU), which is planning a A$2 billion ($1.3 billion) wood pulp mill in Australia’s Tasmania state, rose 14 cents, or 17 percent, to 95 cents, the highest since Nov. 18. The move takes its gain over four days to 47 percent after the company agreed to sell some timber assets to repay debt.

OM Holdings Ltd. (OMH AU), an Australian manganese producer, soared 22 cents, or 20 percent, to A$1.35, the highest since Oct. 15. A Consolidated Minerals Ltd. subsidiary, Stratford Sun Ltd., bought more than 10 percent of OM Holdings’ issued capital, the company said in a statement.

Timbercorp Ltd. (TIM AU), an agribusiness investment manager, slumped 3 cents, or 14 percent, to 19 cents, the lowest since May 29, 1997. The company was the biggest loser on the benchmark after reporting that net profit fell 32 percent to A$44.6 million in the year ended Sept. 30.

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