Australian Stocks Up on China Imports Increase

Marcus Jacob
10 Jun, 2011
New York City

Australian indexes edged higher after the government released mining tax legislation. Market sentiment was buoyed after exports from China rose at a faster pace than anticipated. Origin Energy completed the sale of 500 million euros bonds.

[R]5:20 PM Sydney – Australian indexes edged higher after the government released mining tax legislation. Market sentiment was buoyed after exports from China rose at a faster pace than anticipated. Origin Energy completed the sale of 500 million euros bonds.[/R]

Stocks in Australia edged higher after China reported faster than expected imports increase in May.

The trade surplus in the month widened to US$13.05 billion from US$11.40 billion. Imports in the month increased 28.4% from a year ago month and accelerated from 21.8% increase in April according to the Customs data released by China.

The closely watched imports data lifted Australian indexes as the miners and energy companies rely on Chinese exports to sustain their expansions.

The growth in exports declined to 19.4% from 29.9% in April. On a monthly basis, imports declined 0.1% from April and exports increased 1%.

The ASX 200 index increased to 12.50 to 4,562.1 and All Ordinaries index added 13.20 to 4,634.90.

Stock trading turnover increased to 1.96 billion shares worth $4.1 billion. Of the shares traded, 555 increased, 501 declined and 419 were unchanged.

The Australian dollar decreased a fraction to US$1.06 and crude oil price edged 31 cents lower to US$101.62 a barrel.

Stock Movers

Resources and energy linked stocks closed higher after China reported faster than expected gain in imports. Also, the government released the draft legislation for its proposed mining tax.

BHP Billiton increased 20 cents to $43.15 and Rio Tinto added 41 cents to $80.20.

Gold related stocks climbed higher after gold advanced in New York trading. Newcrest Mining increased 0.1% to and Kingsgate Consolidated added 1.2%.

Banks closed mixed.

National Australian Bank declined 11 cents to $24.17 and Commonwealth Bank eased 1 cent to $49.59. ANZ Banking Group increased 3 cents to $21.53 and Westpac inched up 6 cents to $21.85.

Retailers extended gains for the second day after dropping the lows last seen in August.

Bilabong added 12 cents to $6.20. Myer increased 8 cents to $2.81 and David Jones added 8 cents to $4.10.

Origin Energy completed the sale of 500 million euros of hybrid securities to fund the gas exports joint venture with Conoco Phillips. The bond pays semi-annual interest at annual rate of 7.875% for the first seven years and then it sets on a floating rate basis.