3:00AM New York, 7:00PM Sydney – Australian stocks rose on a rise in commodities prices and on the continued strength in financial stocks.

Market Sentiments

ASX 200 index gained 1.9% or 106 to close at 5,608.90.

The Preliminary market turnover was 2.1 billion shares worth $6.46 billion, with 629 stocks up, 575 down and 320 unchanged. The most traded stock was Citadel Resources Group with 129.7 million shares worth $28.7 million.

Market Driver

The market today responded positively to press reports that Australian property trust Centro Properties Group was getting offers to buy a stake at more than triple yesterday''s share price.

Centro stock surged 71% after Australian Financial Review said that the property trust had received at least more than six offers above 90 cents a share.

During trade Centro had to call for a temporary trading halt after the ASX queried the movement of its shares. Prior to the trading halt the share gained as much as 35.5 Australian cents, or 120%, to 65 cents lifting the company market cap to $416 million.

The company spokesman Jim Kelly said, ""In regards to the article on page 54 of the Australian Financial Review today, as previously announced, Centro Properties Group is in discussions with a number of parties and lender groups in relation to the recapitalisation process.

Those discussions remain incomplete. At this time, there is no certainty or assurance that these discussions will lead to a transaction, what form such transaction may take, or what value might arise out of a transaction, if any.""

Centro, which is seeking to refinance $4.9 billion of debt, posted a record $1.1 billion loss in the six months to December 31 as it wrote down the value of its U.S. shopping malls.

Gainers and losers

Of the ASX 200 index stocks, Centro Properties led the gainers with a rise of 71.2% followed by increases in Centro retail Group of 31.9%, in Sunland Group of 15.8%, in Aquarius Platinum of 8.1% and in Australian Wealth of 7.8%.

Of the ASX 200 index stocks, Emeco Holdings led the decliners with a fall of 7.6% followed by losses in Sally Malay Mini of 3.8%, in Flight Centre of 3.5%, in Dexus Property of 3.5% and in Centennial Coal of 3.4%.

ChemGenex ahead in leukemia treatment development

Australian developer of cancer drugs, ChemGenex Pharmaceutical Ltd is set to unveil its leukemia treatment derived from the leaves of a Chinese evergreen tree ahead of Merck & Co and it expects the medicine to be approved in the US next year.

Merck and its partner, Vertex pharmaceuticals were forced to withdraw their drug in November after the drug showed several side effects.

Analysts believe that ChemGenex has a lead of 18 months ahead of six competitors in developing a therapy for an untreatable form of leukemia.

ChemGenex stock fell 5.8%.

Citadel rises 13% after selling stake pledged to Opes