New High in Australian Dollar Lifts Stocks

Marcus Jacob
08 Apr, 2011
New York City

5:00 Sydney

[R]5:00 Sydney – Australian stocks gained for the seventh session in nine days and Australian dollar reached a new high in three decades. Gold and silver traded at new highs in thirty years. Banks and miners led the gainers.[/R]

Stocks in Australia closed higher and extended gains in the last nine days on economic optimism and higher exports to Asia. Energy prices rose and gold and silver hit another high as the Australian dollar advanced to a new high in 27-years.

The ASX 200 index increased 32.50 to 4,940.60.

The Australia dollar increased to US$1.053 and crude oil added 93 cents to US111.23.

Stocks in Australia have been on the rise on the expected increase in minerals from China, Japan and India. The Australian dollar has advanced to the post-1983 high on the recent wins in higher prices for coals and iron ore prices.

Stock Movers

Banks closed higher after a rally in financial, miners and energy stocks.

Commonwealth Bank increased 1.1% to $53.10 and National Australia Bank added 1.5% to $26.33.

Gold miners closed higher after gold and silver hit a new 31-year high. Newcrest Mining increased 1.4% to $42.08.

BHP Billiton edged up 0.2% to $47.76 and Rio Tinto gained a fraction after the company won control in Riversdale Mining. The company already appointed three directors to the company and is expected to increase its stake in the company before the offer closed on April 20.

Equinox Minerals rejected the offer from Minmetals Resources and said that the C$6.3 billion offer is “opportunistic” and “low ball.” Minemtals Resources Ltd increased 1.6% to $6.83.