Australian Stocks Surge as Bank Stocks and Woolworths Shine, Iron-Ore Miners Struggle

The Australian market experienced a significant uptick early Wednesday, with the S&P/ASX 200 rising 0.8% after a modest decline the previous session. The banking sector propelled the gains, with several blue-chip stocks making notable advances. Meanwhile, Woolworths Ltd. dominated the headlines, as the retailer announced the departure of its CEO, downgraded its profit outlook, and announced plans to cut approximately 1,200 jobs.

Key Takeaways:

Commonwealth Bank of Australia rose 1.6%, Westpac Banking Corp. improved by 1.9%, Macquarie Group Ltd. advanced 1.3%, and Australia & New Zealand Banking Group gained 1.8% as Dow Jones Newswires reported that the company was "actively seeking buyers" for some of its portfolio of loans to commodity trading house Noble Group Ltd.
Woolworths Ltd. shares rose 1.9% despite the departure of its CEO, a lowered profit outlook, and the announcement of job cuts.
Iron-ore miners suffered losses, with Fortescue Metals Group Ltd. plummeting 4.3%, Arrium Ltd. sliding 5.5% lower, and Mt. Gibson Iron Ltd. down 1.4%.
Rio Tinto Ltd. (RIO) and BHP Billiton Ltd. (BHP.AU) both performed better, rising 0.2% and 0.4%, respectively.
Credit Suisse downgraded Alumina Ltd. shares to neutral from outperform, citing expectations for weaker commodity prices.

Statistics:

The S&P/ASX 200 rose 0.8% early Wednesday.
Commonwealth Bank of Australia rose 1.6%, Westpac Banking Corp. improved by 1.9%, Macquarie Group Ltd. advanced 1.3%, and Australia & New Zealand Banking Group gained 1.8%.
Woolworths Ltd. shares rose 1.9%.
Fortescue Metals Group Ltd. dropped 4.3%, Arrium Ltd. slid 5.5% lower, and Mt. Gibson Iron Ltd. down 1.4%.
Rio Tinto Ltd. (RIO) rose 0.2%, and BHP Billiton Ltd. (BHP.AU) improved 0.4%.
Credit Suisse cut Alumina Ltd. shares to neutral from outperform, citing expectations for weaker commodity prices.

Sources:

Dow Jones Newswires
Credit Suisse