Sept. 27 (Bloomberg) -- Australia's S&P/ASX 200 Index rose to a record, led by National Australia Bank Ltd., after durable goods orders fell more than expected in the U.S., adding to expectations the Federal Reserve will cut interest rates again.
``The chance of another rate cut in the U.S. helps banks; it's like petrol to a fire,'' said Hans Kunnen, who helped manage the equivalent of $117 billion at Colonial First State Global Asset Management in Sydney. ``Lower interest rates mean more people will be out to borrow money.''
Energy Resources of Australia Ltd. climbed on plans to expand its Ranger uranium mine. Seven Network Ltd. gained after it bid to take Unwired Group Ltd. over.
The S&P/ASX 200 increased 60.90, or 0.9 percent, to 6,540.90 as at 11:11 a.m. in Sydney, set for its highest-ever close. About four stocks rose for each that fell.
National Australia Bank, the nation's biggest lender, added 81 cents, or 2.1 percent, to A$39.83. Australia and New Zealand Banking Group Ltd., the third-largest, gained 46 cents, or 1.6 percent, to A$29.26. St. George Bank Ltd., the fifth-largest bank, rose 40 cents, or 1.2 percent, to A$35.25.
Demand for American-made durable goods such as jetliners and telephone network switches fell 4.9 percent in August, the most in seven months, the U.S. Commerce Department said yesterday. Total orders were forecast to fall 4 percent, according to economists surveyed by Bloomberg.
The report spurred traders to increase bets the Fed will cut borrowing costs for the second time in two months when it meets Oct. 31. Futures contracts yesterday suggested about 86 percent odds of a quarter-percentage point cut in the 4.75 percent target rate at its next meeting Oct. 31, compared with a 72 percent chance a week ago.
Energy Resources
A measure of financial stocks on Australia's index climbed 2.3 percent Sept. 19, the day after the Fed cut the rate a half- percentage point in a bid to stimulate the world's largest economy.
Energy Resources, the Rio Tinto group unit that produces more than a 10th of the world's mined uranium, jumped 82 cents, or 4.7 percent, to A$18.14. The company will spend A$57 million expanding its Ranger mine in Australia's Northern Territory, in order to add 4,857 metric tons of uranium oxide to the site's reserves.
Seven, Australia's most watched television broadcaster, gained 16, or 1.2 percent, to A$13.28. It offered 45 cents a share for Unwired, in a bid recommended by the company's board, and will increase its offer to 50 cents should it get 90 percent of Unwired.
Unwired, an Australian wireless Internet operator, also rose, adding 2.5 cent, or 5.3 percent, to 50 cents.
The S&P/ASX 200's futures contract for December added 0.8 percent to 6,599. The broader All Ordinaries Index rose 0.9 percent to 6,546.70.
The following shares also gained or declined. Stock symbols are in brackets after the company names.
Babcock & Brown Ltd. (BNB AU), Australia's second-largest investment bank, rose A$1.14, or 4.3 percent, to A$27.65. The bank sold 18.7 million American depositary receipts in Babcock & Brown Air Ltd. at $23 apiece, its first U.S. capital raising.
Boart Longyear Ltd. (BLY AU), a provider of drilling services to mining companies, added 2 cents, or 0.8 percent, to A$2.41. Boart was rated a ``buy'' in new coverage at Merrill Lynch & Co. because of the positive outlook for its shares and earnings.
Macquarie Bank Ltd. (MBL AU), Australia's largest investment bank, jumped A$2.14, or 2.7 percent, to A$82.41. Macquarie agreed to buy Canadian securities firm Orion Financial Inc. for C$147 million ($146 million) in cash and shares in order to expand its presence in Canada. Orion has offices in Montreal, Toronto, Calgary and Montreal and focuses on the resources industry.
Midwest Corp. (MIS AU), an Australian iron ore producer, dropped 21 cents, or 6.4 percent, to A$3.08. Midwest has been denied a request to extend its permit to haul ore by road from its Koolanooka stockpile to Geraldton port, Western Australia state. The company is seeking an urgent meeting about the matter with the state's Minister for Planning and Infrastructure, it said in a statement to the exchange yesterday.
Nufarm Ltd. (NUF AU), Australia's biggest supplier of farm chemicals, declined 42 cents, or 3 percent, to A$13.83. Nufarm was cut to ``sell'' from ``neutral'' by UBS AG analyst Owen Evans after it missed its own profit forecast in results released yesterday. UBS set a 12-month price target for the stock of A$14.50 per share.
Pacifica Group Ltd. (PBB AU), a manufacturer of parts for General Motors Corp., lost 6.5 cents, or 3.3 percent, to A$1.92. Pacifica said a general strike at GM's North American plants is expected to ``adversely impact'' on earnings for the 2007 fiscal year. Pacifica closed it Knoxville factory yesterday, which will affect operations in Chinese, Thai and Australian plants, according to a statement to the exchange.
Rams Home Loans Group Ltd. (RHG AU), the Australian lender that last month failed to refinance $5.3 million of short-term debt, fell 1.5 cent, or 1.5 percent, to 97 cents. Rams was cut to ``neutral'' from ``buy'' by Merrill Lynch & Co. analysts.
Rocklands Richfield Ltd. (RCI AU), a coal mining company with exploration tenements in Queensland state's Bowen Basin, slipped 0.5 cent, or 1.8 percent, to 28 cents. Bowen Energy Ltd. will not proceed with its takeover of Rocklands, it said in a statement yesterday. Rocklands shareholders voted in favor of the company acquiring China Coke Chemicals Ltd. and Bowen's bid was conditional on Rocklands not buying China Coke. Bowen (BWN AU), a coal and uranium miner, slid 1.5 cent, or 6.1 percent, to 23 cents.
Seek Ltd. (SEK AU), Australia's biggest Internet job site, fell 6 cents, or 0.7 percent, to A$8.82. Merrill Lynch & Co. reduced the stock to ``neutral'' from ``buy''.
Tattersall's Ltd. (TTS AU), Australia's second-largest gaming company, added 8 cents, or 2.1 percent, to A$3.98. Credit Suisse AG raised Tattersall's to ``neutral'' after its stock dropped more than 8 percent this month.
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