Sydney Stocks Gain; QR National IPO Attracts Foreign Investors

Chandrasekhar Atreya
18 Nov, 2010
New York City

Australian shares edged higher as miners gained and financials fell. Shareholders filed a lawsuit seeking compensation for damages from National Australia Bank. QR National offering attracts $2.6 billion in bids from overseas investors. Competition authorities blocks Franklin Supermarket sale.

[R]6:00 PM Sydney, Australia – Australian shares edged higher as miners gained and financials declined. Shareholders filed a lawsuit seeking compensation for damages from National Australia Bank. QR National offering attracts $2.6 billion in bids mostly from overseas investors. Competition authorities blocks Franklin Supermarket chain sale to Metcash.[/R]

Stocks in Sydney edged marginally higher led by miners and financials stocks closed lower.

The ASX 200 Index gained 0.34% or 15.9 to close at 4,640.20

The Australian dollar was firm in trading today aided by the commentary from the central bank. The Aussie dollar closed at 98.1 U.S. cents.

Seasonally adjusted merchandise imports fell by $565 million in October to $17.053 billion according to the data released today by the Australian Bureau of Statistics.

Imports of mineral fuels, lubricants and related materials fell to $2.242 billion in October, from $2.47 billion in September, while imports of machinery and transport equipment fell to $6.991 billion from the high of $7.059 billion.

Reserve Bank of Australia Thursday warned that Europe’s worsening debt crisis is having a destabilizing effect on the financial markets and could pose a risk to the global economic recovery.

Federal Treasurer Wayne Swan appointed Fairfax Media chairman Roger Corbett to a second five-year term on the board of RBA.

Woolworths, the operator of retail stores today reiterated its full year earnings guidance of 8% to 11% growth and also indicated that it is looking for acquisitions.

QR National public offering attracted strong interest from overseas institutions and as of today the total bids came in at about $2.55 billion. Domestic investors have lukewarm to the offering.

The competition regulator blocked the sale of the Franklin Supermarket chain with 88 stores controlled by South African retailer Pick n Pay for $215 million to Metcash.

Declining steel production in China has led to a 40% fall in iron ore exports to that country from port Hedland in the period September and October.

Skilled vacancies in Australia dropped 1% in November from a month earlier, national data showed.

The Department of Education, Employment and Workplace Relations skilled vacancies index in November was 44.5 points, 5.9% higher than in November 2009. Vacancies in all three of the occupational groups monitored by the department fell in November.

National Australia Bank faces a class action of $450 million from shareholders for not revealing its sub-prime exposure.

Stock Movers

Resource companies led the gainers in trading. Sundance Resources gained 6.8% to A$0.315 and Panoramic Resources closed up 6.7% to A$2.39. St Barbara closed up 5.68% to A$0.465.

BHP Billiton added 33 cents to A$43.80 and Rio Tinto gained 71 cents to A$84.40. A day ago, the mining giant BHP said it will resume stock buy back after it canceled its takeover plan for Potash Corp of Saskatchewan.

AXA Asia Pacific Holdings gained 3 cents to A$6.23 and AMP added 2 cents to A$5.18 after the Asian unit of AXA said all six independent directors are in favor of a takeover by the parent.

Infigen Energy dropped 11.73% to A$0.64 and the company is in talks to set up a wind farm that may cost as much as A$500 million. Managing Director Miles George said that the company is looking to generate as much as 200 megawatts of energy through the project a year and will add to its current 40 megawatts annual capacity in construction.

Ausenco fell 8.25% to A$2.67 while Platinum Australia dropped 5.99% to A$0.55.

National Australian Bank closed nearly unchanged at A$24.37 after shareholders sued the bank to recover the losses from the stock decline. The bank fell more than 35% in the three months to September 2008 during the financial crisis when U.S. linked mortgage loans collapsed.

ANZ Group fell 1% A$22.58, Commonwealth Bank declined 0.8% to A$49.52 and Westpac dropped 0.6% to A$21.80.