By Shani Raja
Dec. 4 (Bloomberg) -- The S&P/ASX 200 Index rose 34.60 points, or 1 percent, to 3,568.40 at 11:10 a.m. in Sydney. The broader All Ordinaries Index gained 27.70 points, or 0.8 percent, to 3,504.20, while the futures contract expiring in December advanced 0.3 percent to 3,567.
Babcock & Brown Ltd. (BNB AU) soared 27 cents, or 108 percent, to 52 cents, the benchmark’s best performer. The Australian asset manager struggling to stave off collapse received a A$150 million ($98 million) short-term loan from its bankers, giving it more time to sell assets and cut costs to avoid bankruptcy.
Billabong International Ltd. (BBG AU), the world’s biggest publicly traded surfwear maker, plunged A$1.50, or 15 percent, to A$8.50, the index’s biggest loser.
The company forecast first-half earnings-per-share to fall for a second straight year as a U.S. recession cuts demand for clothing and surfing accessories.
Dexus Property Group (DXS AU), Australia’s sixth-biggest real-estate investment trust, gained 7 cents, or 8.3 percent, to 91 cents, the highest since Nov. 12. The company raised A$300 million through an institutional placement, and said it will release details this month of a plan to purchase securities. Separately, Merrill Lynch & Co. raised Dexus’s rating to “buy.”
James Hardie Industries NV (JHX AU), the biggest seller of home siding in the U.S., rallied 16 cents, or 4.4 percent, to A$3.82, the highest since Nov. 24. U.S. Treasury Secretary Henry Paulson is considering a new plan to lower mortgage rates to resuscitate the U.S. housing market, according to a government official.
Nufarm Ltd. (NUF AU), Australia’s only maker of crop protection chemicals, surged A$1.44, or 19 percent, to A$8.99, the most since July 30, 1998.
Nufarm renegotiated A$1.4 billion ($910 million) of loans after accelerating talks with bankers. The company secured additional loans, bringing the total to almost A$1.8 billion, according to Chief Executive Officer Doug Rathbone.
Qantas Airways Ltd. (QAN AU) advanced 3 cents, or 1.3 percent, to A$2.38, the highest since Nov. 14. Qantas and British Airways Plc are targeting annual cost savings of at least $500 million by 2010 from a potential merger, the Australian Financial Review said, without citing anyone.
Rio Tinto Group (RIO AU), the world’s third-biggest mining company, slumped A$3.70, or 10 percent, to A$33.10, the lowest since May 18, 2004.
A measure of six metals traded in London dropped for the fifth day, falling 3.9 percent. Zinc declined 2.5 percent, copper 3.1 percent and nickel 3.2 percent.
Straits Resources Ltd. (SRL AU), an Australian copper, gold and coal mining company, soared 13 cents, or 16 percent, to 96 cents, the most since Oct. 17. Straits said it’s received interest from potential buyers for its S$378 million ($248 million) stake in coal unit Straits Asia Resources Ltd.
To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net
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