Australia Stocks Rise to Record, Led by BHP Billiton, Woodside

Sept. 28 (Bloomberg) -- Australia's stock index climbed, extending a record, led by BHP Billiton Ltd. and Woodside Petroleum Ltd., after metals and oil prices rose on the prospect another U.S. rate cut will boost the world's biggest economy.

``The commodities are driving it today on the likelihood of further cuts to U.S. rates,'' said Rob Patterson, who manages the equivalent of $3.8 billion at Argo Investments Ltd. in Adelaide. ``Since the last rate cut our market's been on fire because it had a reassuring effect.''

The S&P/ASX 200 gained 44.60, or 0.6 percent, to 6,584.10 as at 11:20 a.m. in Sydney, headed for its fourth record close this week and a 5.4 percent gain this month. About two stocks rose for each that fell.

BHP, the world's largest mining company, added A$1.22, or 2.8 percent, to A$44.75,set for its highest ever close. Rio Tinto Group, the third biggest, rose A$1.35, or 1.3 percent, to A$108.80, a record. Zinifex Ltd., the world's No. 3 zinc producer, gained 18 cents, or 1 percent, to A$18.18.

A measure of six metals traded on the London Metal Exchange climbed 0.7 percent yesterday. Copper gained 1 percent and zinc jumped 3 percent.

Newcrest Mining Ltd., Australia's largest gold miner, added 75 cents, or 2.6 percent, to A$29.35. Sino Golding Mining Ltd., the Sydney-based owner of China's second-largest gold mine, jumped 34 cents, or 4.8 percent, to A$7.48.

Gold traded close to the highest in 27 years as a decline in the U.S. dollar boosts its appeal as an alternative investment.

Woodside, Beach

Woodside, Australia's second-biggest oil producer, rose A$1.37 cents, or 2.8 percent, to A$50.29. Beach Petroleum Ltd., the No. 4 oil and gas company by reserves, added 3.5 cents, or 2.4 percent, to A$1.50.

Crude oil rose more than $2 a barrel in New York yesterday after the U.S. dollar fell to a record low against the euro, boosting the appeal of commodities as alternative investments. Oil for November delivery was recently at $83.11 a barrel in after-hours trading after jumping 3.2 percent yesterday.

The S&P/ASX 200's futures contract for December gained 0.7 percent to 6,582.20. The broader All Ordinaries Index rose 0.6 percent to 6,589.80.

The following shares also gained or declined. Stock symbols are in brackets after the company names.

Coca-Cola Amatil Ltd. (CCL AU), Australia's biggest soft- drink maker, fell 20 cents, or 2.2 percent, to A$9.05. Coca-Cola Co. is planning to sell A$166.5 million ($147 million) stake in the Australian Coca-Cola Amatil. The Atlanta-based company will sell about 18 million shares to fund the purchase of a 10 percent stake in South Korea's Coke bottler, according to a statement to the exchange yesterday.

Energy Resources of Australia Ltd. (ERA AU), producer of more than a 10th of the world's mined uranium, gained a second day, rising 93 cents, or 5 percent, to A$19.38. The unit of Rio Tinto Group said yesterday it will spend A$57 million expanding its Ranger mine in Australia's Northern Territory.

Essa Australia Ltd. (ESS AU), a manufacturer of sampling equipment for the mining industry, surged 15 cents, or 14 percent, to A$1.20. Essa said a company had agreed to install two of their new laboratory automation systems.

Midwest Corp. Ltd. (MIS AU), an Australian iron-ore producer, added 8 cents, or 2.5 percent, to A$3.24. Midwest was cut to ``sector perform'' from ``outperform'' by RBC Capital Markets analyst Chris Lancaster. The company said yesterday it had been granted an extension until Oct. 20 on its permit to haul ore by road to Western Australia's Geraldton port. The Western Australia state government scrapped legislation granting the permit Sept. 26.

STW Communications Group Ltd. (SGN AU), Australia's only publicly traded advertising company, rose 16 cents, or 6.4 percent, to A$2.66. The United Kingdom's WPP Group Plc may bid for STW in a hostile takeover, the Australian newspaper reported. WPP is understood to have built a 19.9 percent stake in STW over the past few weeks, the report said.

XRF Scientific Ltd. (XRF AU), a laser and fusion equipment manufacturer, jumped 1 cent, or 8.3 percent, to 13 cents. XRF posted a A$517 million operating profit after tax, 25 percent more than the unedited result previously reported.