Australian Stocks and Dollar Extend Gains; Harvey Norman Weak Sales

Marcus Jacob
21 Apr, 2011
New York City

Australian benchmark index increased more than 1% after the dollar advanced to a new high on the rise in energy and gold prices. Stocks gained for the third time in the last four day. Harvey Norman reported weak increase in sales as consumers spend less on furniture and electronics.

[R]6:00 PM Sydney – Australian benchmark index increased more than 1% after the dollar advanced to a new high on the rise in energy and gold prices. Stocks gained for the third time in the last four day. Harvey Norman reported weak increase in sales as consumers spend less on furniture and electronics.[/R]

The ASX index increased 54.80 or 1.1% to 4,913.80 and the All Ordinaries index gained 1.1% or 55.50 to 4,995.70.

The Australian dollar increased 1 cent to US$1.0756 and crude oil price increased 44 cents to US$111.89.

Energy and mining companies led the gainers as crude oil advanced and gold crossed over US$1,500 an ounce. The 3-decade high price was lifted on the weak U.S. dollar and steady demand from China and India.

Silver traded above US$44 price level.

Australian Bureau of Statistics said final producer prices increased 1.2% in the first quarter from the previous quarter and gained 2.9% from a year ago.

The largest annual increase in wholesale price was driven by 13% increase fuel prices in the last quarter and 13.7% increase in food prices.

In a private survey, National Australia Bank said business confidence increased in the first quarter to 11 points from 5 points in the fourth quarter and business conditions were flat at 2 points after the flooding in Queensland.

Harvey Norman, the furniture and electronics retailer said sales increased 1.4% in the nine month period to March to $4.7 billion. Sales declined 3.5% without the sales from the new stores opened in the period.

Executive chairman Gerry Harvey said industry sales are down as consumers struggle with “higher petrol prices, higher energy prices” and “people are saving more” after the recent global market meltdown.

Sales if furniture and mattresses increased and the company market share increased despite the overall housing market downturn.

Stock Movers

BHP Billiton increased 9 cents to $47.32 and Rio Tinto increased 98 cents or 1.2% to $84.10.

Newcrest Mining increased 84 cents or 2% to $42.66 after gold in Sydney closed up US$4 to US$1,506.50.

Santos Ltd increased 34 cents to $15.97 and Woodside Petroleum Ltd increased $1.26 to $47.86.

Banks participated in the rally. ANZ increased 27 cents to $24.11, Commonwealth Bank of Australia increased 49 cents to $53.16 and National Australia Bank increased 31 cents to $26.79. Westpac increased 51 cents to $25.48.