ASX Chief to Resign; Australian Dollar Parity

Chandrasekhar Atreya
29 Sep, 2010
New York City

Australian dollar advanced and inched closer to parity with the U.S. dollar, the largest monthly gain since May 2009. Sales of new homes fell for the fourth month in a row. ASX CEO plans to step down next year.

[R]6:00 PM Sydney, Australia – Australian dollar advanced and inched closer to parity with the U.S. dollar, the largest monthly gain since May 2009. Sales of new homes fell for the fourth month in a row. ASX CEO plans to step down next year.[/R]

Australian stocks closed lower. The ASX 200 Index fell 0.53% or 24.80 to close at 4,645.00. The Australian dollar closed at 97.02 U.S cents in Sydney.

Australian Stock Exchange said its Chief Executive Robert Elstone would step down next year.

Sales of new homes in Australia have fallen for the fourth month in a row.

The number of new homes sold in August fell by 2.6% to 6,887 from a year ago, the Housing Industry Association said in a statement on Wednesday. This follows a 7.1% fall in July bringing the total decline since April to 19.7%.

Australia’s bio-fuel output is forecast to more than double by 2015 as new capacity is installed and as demand for alternative fuels to gasoline increases, a private consultancy firm predicted on Wednesday.

The Australian dollar traded Wednesday within 2 U.S. cents for a record, in-line for its largest monthly gain since May 2009. The Australian dollar traded at 96.79 U.S. cents at in Sydney from 96.76 cents in New York yesterday, and reached earlier 96.87 cents, record since July 2008.

The Western Australia government is trying to mobilize specialized drilling equipment, which would help realize the potential of its unconventional gas resources and address its gas shortage issue.

Lynas Corp building a A$550 million rare earths project in Australia, agreed to supply a Japanese consumer, a day after Japan said China’s de facto export ban may harm its economy.

“Lynas is very pleased to sign this contract with one of the leading companies in this market,” Executive Chairman Nicholas Curtis said without naming the customer. The supplies will be made from the company’s Mt Weld project and produced at its plant in Kuantan, Malaysia, when production starts next year.

Australia has 174,000 millionaires, 30% more than the number last year, the Australian Financial Review said, citing a report by Capgemini and Merrill Lynch & Co. These millionaires together had a combined wealth of $519 billion, up from $380 billion in 2008, the report said.

JP Morgan was fined A$30,000 for contravening an operating rule of the Sydney Futures Exchange after one of its employees mistakenly entered an order to sell call options instead of put options.

Resource News

Niger-focused NGM Resources is challenging Paladin Energy’s decision to drop its $27 million friendly takeover offer for the uranium and base metals explorer.

Production from BHP Billiton’s South American copper operations at Escondida could increase by 30% over the next five to six years as the mining giant accesses higher grade ores.

InterOil, the U.S.-listed company that is seeking to develop Papua New Guinea’s second LPG project, said it is linking with Sydney-based Energy World Corp, which may fund the project.

Stuart Petroleum’s 70% owned Worrior-7 well in Cooper Basin is now producing around 300 barrels of oil per day from the McKinlay Formation.

Gainers & Losers

Medusa Mining Ltd led the gainers in the ASX with a rally of 5.32% to A$4.95 followed by Eldorado Gold Corp 4.74% to A$19.66, Ardent Leisure Group 3.86% to A$1.075, Transpacific Industries Group Ltd 3.51% to A$1.18 and ING Industrial Fund 3.13% to A$0.495.

Elders Ltd led the decliners in the index with a drop of 6.35% to A$0.59 followed by Nufarm Ltd 5.84% to A$3.71, Goodman Fielder Ltd 5.3% to A$1.34, Map Group 4.5% to A$2.97 and Carsales.com Ltd 4.48% to A$4.69.