Australian Manufacturing in Recession Conditions; Stocks Rebound

Marcus Jacob
13 Sep, 2011
New York City

The benchmark index in Australia rebounded nearly 0.9% a day after it plunged more than 3.5%. The latest survey from a private bank showed manufacturing is conditions that are similar to a recession.

[R]4:30 PM Sydney – The benchmark index in Australia rebounded nearly 0.9% a day after it plunged more than 3.5%. The latest survey from a private bank showed manufacturing is conditions that are similar to a recession.[/R]

Stocks in Australia rebounded a day after the benchmark index plunged more than 3.5%. The latest private survey conducted by National Australia Bank suggested weak business conditions.

The survey also indicated that manufacturing sector, which employs 10% of the labor force appears to be in a recession. The index across all businesses declined to 10 points to -8 in August and employment conditions in manufacturing dropped to -25 compared to near zero for businesses in general.

The ASX 200 index gained 34.20 or 0.85% to 4,072.7 and All Ordinaries index rose 33.3 or 0.8% to 4,158.4.

The Australian dollar closed down 1.2% to US$1.0372 and gold price decreased $23.90 to US$1,826.61.

In trading, stock volume was below average at 2.08 billion shares worth $4.8 billion. For two stocks that declined, seven increased in the benchmark index.

Stock Movers

Cochlear, the maker of hearing implants rebounded 4.5% or $2.60 to $60.10 a day after the company announced a recall of a range of implant.

The company recalled Nucleus CI500 range of hearing implants, its first recall and said financial impacts of the recall is unknown. The previous model and external devices like Nucleus 5 CP810 are not subject to the recall.

BHP Billiton Ltd increased $0.84 to $37.29 and Rio Tinto added $0.70 to $68.90. Newcrest Mining Limited fell 40 cents to $39.40 and Atlas Iron decreased 2 cents to $3.41.

Iluka Resources decreased 47 cents to $15.26.

Oil Search increased 21 cents to $6.05, Santos added 30 cents to $11.21 and Woodside Petroleum advanced 57 cents to $33.14. Origin Energy gained 49 cents to $13.

Commonwealth Bank of Australia decreased $0.34 to $45.11 and National Australia Bank rose 12 cents to $22.48. ANZ added 11 cents to $19.32. Westpac added 11 cents to $19.31.

Macquarie Group increased 3 cents to $22.06. Wesfarmers added 33 cents to $30.50.

Qantas Airways Limited fell 2 cents to $1.50.