Australian Stocks Gain; Banks Advance

Marcus Jacob
09 Sep, 2011
New York City

Stocks in Australia edged higher and the benchmark index in the week fell 1.1%. Resources linked companies closed up after the U.S. President Obama proposed $447 billion stimulus plan to create more jobs and improve infrastructure.

[R]4:30 PM Sydney – Stocks in Australia edged higher and the index in the week fell 1.1%. Resources linked companies closed up after the U.S. President Obama proposed $447 billion stimulus plan to create more jobs and improve infrastructure.[/R]

Australian stocks closed higher for the second day in this week and the benchmark index gained a fraction. For the week, the index declined 1.1% and fell three of the five days of trading.

The ASX 200 index added 6.7 or 0.2% to 4,194.7 and All Ordinaries index added 7.6 or 0.2% to 4,277.2.

The Australian dollar closed down 0.02% to US$1.052 and gold price decreased $3.04 to US$1,840.77.

Stocks were on the defensive after rallying in the morning. U.S. President Barack Obama proposed a jobs plan that will amount to spending $447 billion. The package includes $240 billion in payroll tax cuts for small companies till 2012 and $140 billion in infrastructure improvement.

The plan amounts to about 3% of the gross domestic product of the U.S. and if enacted will lift the economy in the next few quarters.

Stock Movers

BHP Billiton Ltd decreased 26 cents to $37.91 and Rio Tinto fell $0.05 to $71.25. Newcrest Mining Limited added 0.8% to $39.86 and Atlas Iron decreased 1 cent to $3.69.

Leighton Holdings decreased 39 cents to $18.74 and OneSteel Limited dropped 8 cents to $1.37.

Oil Search decreased 5 cents to $6.09 and Santos fell 4 cents to $11.52.

Commonwealth Bank of Australia increased $0.19 to $47.41 and National Australia Bank added 11 cents to $23.32. ANZ added 2 cents to $19.94. Westpac gained 4 cents to $20.13.

Macquarie Group decreased 20 cents to $23. Wesfarmers increased 34 cents to $30.85.