Australia’s S&P/ASX 200 Index Has Biggest Weekly Gain on Record

By Shani Raja

Nov. 28 (Bloomberg) -- Australia’s S&P/ASX 200 Index surged 9.5 percent in the past five days, its biggest weekly gain in the benchmark’s history dating back to 1992.

The index rallied 326 points in the week to end today at 3,742.50, its highest level in two weeks. The gain today was 154.50 points, or 4.3 percent.

Oil and mining stocks: BHP Billiton Ltd. (BHP AU), the world’s largest mining company, rose A$2.20, or 7.6 percent, to A$31, the highest since Nov. 5. Rio Tinto Group (RIO AU) gained A$3.75, or 8.8 percent, to A$46.60, the most since Oct. 30. Woodside Petroleum Ltd. (WPL AU) rose A$2.05, or 6 percent, to A$36.05.

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 22 cents, or 6.9 percent, to A$3.41, the highest since May 13. 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$1.07, or 16 percent, to A$7.56, the benchmark’s third-best performer.

Babcock & Brown Infrastructure Group (BBI AU), the owner of Australia’s second-biggest coal-export harbor, soared 3.2 cents, or 74 percent, to 7.5 cents, a record gain. The shares have rallied 150 percent since Nov. 26, when Babcock & Brown Wind Partners (BBW AU) said it submitted a proposal to end management agreements with its parent Babcock & Brown Ltd., which is fighting to avoid defaulting on debt.

Centro Properties Group (CNP AU), the owner of 794 shopping malls in the U.S., Australia and New Zealand, dropped 1.5 cents, or 19 percent, to 6.3 cents, the most since Sept. 19. Centro is continuing talks with lenders to extend more than $4.5 billion of borrowings by Dec. 15 after failing to raise new capital.

DUET Group (DUE AU), an Australian energy asset investor, rallied 27 cents, or a record 16 percent, to A$1.90, after reaffirming its full-year 2009 distribution guidance.

FKP Property Group (FKP AU), a Brisbane-based retirement village operator, rose 5 cents, or 7.7 percent, to 70 cents, the most since Nov. 3. 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 15 cents, or 18 percent, to 96 cents, the highest since Nov. 18. The move takes its gain over four days to 50 percent after the company agreed to sell some timber assets to repay debt.

HFA Holdings Ltd. (HFA AU), an Australian Hedge fund manager, soared 6 cents, or 75 percent, to 14 cents, a record rise. The company said it was unaware of any reason for the gain in its share price, other than perhaps that its assets under management were grossly underestimated in an article in the Australian Financial Review.

OM Holdings Ltd. (OMH AU), an Australian manganese producer, jumped 17 cents, or 15 percent, to A$1.30, the highest since Nov. 3. Ukrainian billionaire Gennadiy Bogolyubov’s Palmary Enterprises Ltd. bought an 11 percent stake in the company.

Timbercorp Ltd. (TIM AU), an agribusiness investment manager, slumped 4.5 cents, or 21 percent, to 17.5 cents, the lowest since May 23, 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.