Australian Resource Stocks Mixed on Carbon Tax Debate

Marcus Jacob
06 Jul, 2011
New York City

Australian stocks closed higher ahead of the jobs report. Commodities and Australian dollar gained lifting resource linked stocks. Coal miners closed lower on the prospect of carbon tax implementation. Tiger Airways stopped selling tickets meeting regulatory demands.

[R]5:00 Sydney – Australian stocks closed higher ahead of the jobs report. Commodities and Australian dollar gained lifting resource linked stocks. Coal miners closed lower on the prospect of carbon tax implementation. Tiger Airways stopped selling tickets meeting regulatory demands.[/R]

Australian stocks closed higher in cautious trading as investors focused on international concerns. Commodities and Australian dollar edged slightly higher ahead of monthly jobs data. Economists are estimating net new job addition of at least 15,000 in June.

Weaker than expected net new job additions will put aside any lingering prospect of interest rate hike at the next central bank rate meeting in August.

Yesterday, the Reserve Bank of Australia left its key interest rate unchanged at 4.75% and indicated inflation to be “close to the target for the next twelve months.”

The rate decision was widely anticipated but the outlook on inflation was weaker than predicted by most economists.

The ASX 200 index added 6.90 or 0.2% to 4,605 and All Ordinaries index increased 0.1% or 6.70 to 4,663.60.

In trading turnover increased to 1.85 billion shares worth $4.55 billion changed hands and 594 stocks increased, 451 decreased and 353 were unchanged.

The Australian dollar increased 0.1% to US$1.0692 and fetched 86.80 yen.

Stock Movers

Qantas decreased 3 cents to $1.99 an Virgin closed flat at 31.5 cents after the troubled discount carrier Tiger Airways was suspended selling tickets and continued talking to regulators.

Australian Agriculture Company decreased 0.5 cents to $1.43 and Elders declined 0.5 cent to 39 cents after the cattle exporter estimated a loss of $1 million in June and $7.3 million loss in “coming months.”

BlueScope Steel increased 8cents to $1.39 and OneSteel added 12 cents to $3.05.

Coal miners traded lower on the ongoing debate on carbon tax. Coal miners and other polluting industries have resisted the calls to pay for carbon tax.

Coal & Allied dropped 4.7% or $4.97 to $100.11 and Whitehaven Coal decreased 1 cent to $5.91.

BHP Billiton increased 22 cents to $44.45 and Rio Tinto added 28 cents to $83.60.

National Australian Bank decreased 18 cents to $24.96, Commonwealth Bank fell 31 cents to $51.47 and ANZ eased 8 cents to $21.85. Westpac fell 8 cents to $21.89.