Australian Index in Weekly 1.6% Gain, Dollar Eases

Marcus Jacob
12 Aug, 2011
New York City

Australian stocks traded higher and after a week of volatile trading closed up 1.6%. The benchmark index is down 12% in the year so far and 16% lower from its peak in April. The index inched near 5,000 in April of 2010 and 2011 but failed to reach the psychologically important milestone.

[R]4:30 PM Sydney – Australian stocks traded higher and after a week of volatile trading closed up 1.6%. The benchmark index is down 12% in the year so far and 16% lower from its peak in April. The index inched near 5,000 in April of 2010 and 2011 but failed to reach the psychologically important milestone.[/R]

The Australian stocks closed higher today and for the week in one of the most volatile days in the two years. The indexes advanced after two weeks of weakness but market sentiment remained fragile.

Institutional buyers stepped up and added to their positions on what they describe as cheap valuations but if the U.S. economy struggles and China’s exports falter the valuation may decline further.

The mining companies are still trading near price to earnings ratio of 13 compared to their last ten years average of seven.

The ASX 200 index added 31.80 or 0.8% to 4,173.60 and All Ordinaries index gained 34.40 or 0.8% to 4,238.90.

The ASX index is 12% below in the year so far and gained 1.6% in the week.

The Australian dollar decreased 0.2% to US$1.03 as the currency remained under pressure all week.

In, trading, turnover declined to 2.45 billion shares changed hands worth $6.2 billion and 808 shares gained, 297 declined and 319 closed unchanged.

Stock Movers

BHP Billiton Ltd added $0.28 to $38.21 and Rio Tinto added $1.11 to $71.52. Newcrest Mining Ltd decreased 1 cent to $40.73.

Fortescue Metals increased 15 cents to $5.94 after the aborigine group claim against three mining leases in Western Australia was rejected by the Federal Court.

Iluka Resources fell $0.04 to $15.46.

Energy futures edged higher by $2.25 to $83.16 a barrel in New York close.

Woodside Petroleum Limited increased $0.06 to $37.05 and Santos Limited added 7 cents to $11.70. Origin Energy fell 10 cents to $13.88.

Linc Energy, the coal steam energy maker, fell 2 cents to $2.17.

Commonwealth Bank of Australia decreased $0.02 to $48.56 and National Australian Bank increased $0.06 to $22.96. ANZ fell 17 cents to $19.92. Westpac added 2 cents to $20.47.

Telstra added 6 cents to $3.05 and two days ago the company guided higher profit in the current year.

JB Hi-Fi added 22 cents to $15.90, David Jones Limited added 1 cent to $2.63 and Wesfarmers Limited increased 50 cents to $28.75.