Australian Stocks Weak; Macarthur Jumps 8%

Mayank Mehta
16 Apr, 2010
New York City

Australian stocks closed lower tracking losses in commodities. Chief executive officer of Sigma Pharmaceuticals Limited resigned and the stock fell 8%. Macarthur Coal Ltd surged 8% on the hopes that Peabody Energy will revised the bid.

[R]8:00 PM Sydney, Australia – Australian stocks closed lower tracking losses in commodities. Chief executive officer of Sigma Pharmaceuticals Limited resigned and the stock fell 8%. Macarthur Coal Ltd surged 8% on the hopes that Peabody Energy will revised the bid. Australian regulators asked more information from BHP Billiton and Rio Tinto Group for their proposed iron ore venture.[/R]

Stocks in Australia declined following the weakness in commodities and metals market. Australian competition regulators permitted more time for BHP Billiton and Rio Tinto Group to provide additional information related to their iron ore venture.

The Asian and European steelmakers are opposed to the venture and stressed that it will drive iron ore prices higher. The venture still needs approval from shareholders and European Union regulators.

ASX 200 index in Australia decreased or 16.50 or 0.33% to 4,985.40 and of the stocks in S&P ASX 200 index, 64 increased, 119 declined and 17 were unchanged.

Macarthur Coal Ltd soared 8.3% to A$16.54 valuing the company higher than the proposed takeover by Peabody Energy Corp on the hopes that the company will revised its offer further.

ASX Movers

Sigma Pharmaceuticals Limited led decliners in the S&P ASX 200 index with a loss of 8.3% followed by losses in Australian Worldwide Exploration Limited of 5.3%, in Gindalbie Metals Ltd of 5.2%, in Australand Property Group 5.2% and in Riversdale Mining Limited 4.8%.

Macarthur Coal Limited led gainers in the S&P ASX 200 index with a rise of 8.4% followed by gains in PaperlinX Limited 6.5%, in Mineral Resources Limited of 3.5% and in Nufarm Limited of 2.9%.

Other Movers

BHP Billiton plc the mining company fell 0.7% to A$43.57.

OZ Minerals Limited decreased 2.7% to A$1.23 after the miner reported gold and copper production in the March quarter ""in excess of expectations"", and upgraded its guidance for annual gold production for 2010 and 2012.

Rio Tinto Limited fell 0.1% to A$79.96.

Santos Ltd, the energy explorer fell 1.8% to A$14.40.

Sigma Pharmaceuticals Limited plunged 9.2% to A$0.49 after the drugmaker said that chief executive officer Elmo De Alwis tendered his resignation. De Alwis has agreed to continue in the role until the board has appointed his replacement.

Woodside Petroleum Ltd, the oil and gas producer declined 1.4% to A$46.77.