Record in Australian Dollar; Sigma Narrows Loss

Marcus Jacob
28 Mar, 2011
New York City

Australian dollar gained to a new post-float high as foreign investment pours in. The Australian dollar traded as high as $1.03 before settling at $1.029. Sigma Pharmaceuticals said its full-year net loss halved.

[R]5:00 PM Sydney – Australian dollar gained to a new post-float high as foreign investment pours in. The Australian dollar traded as high as $1.03 before settling at $1.029. Sigma Pharmaceuticals said its full-year net loss halved.[/R]

Australian stocks were caught in cross currents of rising metals price demand and ongoing political worries in Yemen and Libya and Japan’s struggle to contain radiation near Fukushima nuclear power plant.

The ASX index declined 0.2% or 9 to close at 4,733.60 and the broader All Ordinaries index eased 8.4 or 0.17% to 4,831.90.

The Australian dollar edged up and traded as high as US$1.03 before settling at US$1.0291 and crude oil declined 15 cents to US$104.84 a barrel.

The Australian dollar reached a new post-float high in European trading at US$1.0313 and crossing the previous high of US$1.0254 on January 1 of this year.

The currency has jumped nearly 6 cents since after reaching the low for the year at 97.50 U.S. cents on March 17.

Australia has been a magnet for foreign investors as companies from China, Japan and Korea invest in mining and energy projects that attracted as much as $120 billion from according to a Reserve Bank research note.

Stock Movers

Three of the large four banks closed higher. Westpac increased 12 cents to $23.85, National Australia Bank increased 12 cents to $25.14 and ANZ added 7 cents to $23.44. Commonwealth Bank decreased 12 cents to $51.74.

Sigma Pharmaceuticals soared 4.5 cents to 46 cents after the company said its full-year net loss was cut in half to $235.38 million.

Nufarm, agrochemical maker decreased 15 cents to $5.20 after the company said it expects improved results but it could not forecast the earnings direction for the rest of the year.

Woodside Petroleum increased 38 cents to $47.57 as tensions in the Middle East remained high.

Resource stocks edged lower. BHP Billiton declined 31 cents to $44.50 and Rio Tinto declined 19 cents to $81.83. Newcrest Mining increased 2 cents to $38.78.

Aquarius Platinum declined 6.9% to $5.42 after the company said it plans to comply with the Zimbabwe law that all foreign-owned businesses must have a local majority partner with at least 51% stake. Aquarius controls 50% stake in the Mimosa platinum mine in Zimbabwe.