Sydney Drops; Trade Surplus Surges in June

Chandrasekhar Atreya
04 Aug, 2010
New York City

Stocks in Australia dipped after financial stocks declined on a weakness in the U.S. markets. Exports advanced and imports were flat in June. House prices grow at a robust pace in metropolitan areas of Australia.

[R]6:00 PM Sydney, Australia – Stocks in Australia dipped after financial stocks declined on a weakness in the U.S. markets. Exports advanced and imports were flat in June. House prices grow at a robust pace in metropolitan areas of Australia.[/R]

The Australian share market traded lower dragged by financial stocks after disappointing U.S. economic data and weak earnings from Axa Asia Pacific.

The ASX 200 Index in Sydney declined 0.65% or 29.50 to close at 4,542.10.

The seasonally adjusted traded and services surplus increased to A$3.539 billion in June from an upwardly revised surplus of A$1.825 billion in May, the Australian Bureau of Statistics said today.

During the month, exports were up 7% in adjusted terms while imports were flat.

House prices in capital cities in Australia grew at a solid pace of more than 18% in the year to June, new data released on Wednesday showed. The Australian Bureau of Statistics house price index rose 3.1% in three months to June much in line with market expectations compared with a downwardly revised 4.2% in the March quarter.

Axa Asia Pacific reported a drop of 19% in its fiscal first half profit as investment income slumped by 70%. Net income dropped to A$219 million in six months to June 30 from A$270 million in a year ago same period, the Melbourne-based investment manager said in a statement today.

The Queensland government banned the use of BTEX chemicals in coal seam gas generation. Mines Minister Stephen Robertson told the state parliament the ban was being imposed for the protection of the community and the environment.

BTEX or benzene toluene ethylbenzene and xylenes are a group of chemicals found mainly in petroleum products. An underground coal gasification pilot plant at Kingaroy, 210 kilometer northwest of Brisbane, was closed down last month after traces of cancer-causing chemicals benzene and toluene were found in bores near the plant.

The Australian Office of Financial Management sold A$500 million of Treasury Bonds that mature on April 15, 2020, at a weighted average issue yield of 5.1319%. The bonds carry a coupon rate of 4.5%.

There were 38 bids for the issue worth a total of A$2.118 billion and 19 were accepted. Seven of them were allocated in full.

In the first of a series of non-core asset sales, Boral has sold its precast concrete panel business to Brickworks for A$150 million.

Gloucester Coal Ltd plans to sell as much as A$ 455 million in shares to pay for purchase of assets from its parent Noble Group Ltd. The company is offering these shares at A$9.25 each at 26% discount to yesterday’s closing price, to existing individual and institutional holders, it said in a statement today.

Resource News

Emerging gold producer Regis Resources outlined plans to report a new stand-alone resource as it prepares for its first gold pour later this month.

Australian gold miners say they are looking more to Asia and West Africa for growth as big discoveries at home dry up, costs rise and political uncertainty mounts.

Focus Minerals CEO reveals strong growth in reserves as Three Mile Hill production facility reaches full capacity.

Independent floating liquefied gas project developer Flex LNG linked up with Italy’s Saipem for a potential project in Australia.

Crossland Uranium Mines expanded the central Australian area covered by its Charley Creek uranium project by entering into a joint venture with Western Desert Resources.

Global Geoscience decided to sell 100% stake of its Guyra copper-gold project in NSW to White Rock Minerals.

Apex Minerals is in trading halt for its A$5 million capital raising via 250 million shares at 2 cents each.

Gainers & Losers

Whitehaven Coal Ltd led the gainers in the ASX 200 with a gain of 6.11% to A$5.73 followed by Awe Limited 5.88% to A$1.71 and Mineral Resources Ltd 2.72% to A$8.69.

Linc Energy Ltd led the decliners with a fall of 6.18% to A$1.745 followed by Platinum Australia Ltd 4.73% to A$0.705 and Western Areas NL 4.35% to A$4.84.