Australian Stocks Rebound; Exports, Building Permits, Retail Sales Gain

Marcus Jacob
05 Oct, 2011
New York City

Stocks in Australia increased after a three-day decline. Retail sales in August increased 0.6% and building approvals rose 11.4%. Trade surplus in month surged 71% after exports of coal and iron ore rebounded.

[R]6:00 PM Sydney – Stocks in Australia increased after a three-day decline. Retail sales in August increased 0.6% and building approvals rose 11.4%. Trade surplus in month surged 71% after exports of coal and iron ore rebounded.[/R]

The Australian benchmark indexes advanced after retail sales increased more than expected in August, exports surged and building permits rose.

The market sentiment also improved after a late rally in New York erased losses of as much as 3% earlier in the session.

However, banks were under scrutiny after the Belgium based Dexia SA teetered near closure and sought its second bailout from the governments of France and Belgium in less than three years.

Australian retail sales in August increased 0.6% from the previous month when the sales were revised higher to 0.5% gain. The data were released by the Australian Bureau of Statistics today.

The statistics bureau also said trade surplus soared 71% in August to $3.1 billion from $1.95 billion. Iron ore volume shipment increased from the previous month by 20% and coking coal gained 18%.

Exports of goods and services in the month increased 8% to $28.4 billion and imports rose 3% to $25.3 billion. Goods exports to China increased 16% from the previous month to $6.6 billion and exports to Japan gained 7% to $5 billion and to Korea added 14% to $2 billion.

From the year ago month exports to China soared 33%.

Separately, the ABS also said yesterday that the seasonally adjusted building permits in August increased 11.4%.

The ASX 200 index increased 54.3 or 1.4% to 3,926.4 and All Ordinaries index rose 56.8 or 1.4% to 3,992.4. The Australian dollar gained 0.04% to US$0.956..

In trading, 2.17 billion shares changed hands worth $5.33 billion.

Stock Movers

New Hope soared after the thermal coal miner invited formal takeover proposals. The coal miners were in demand after coal exports soared in August.

New Hope soared 81 cents or 15.3% to $6.10 and the largest shareholder in the company Washington H Soul Patterson increased 99 cents to $13.64.

Sundance Resources rose 0.005 to 46 cents and extended gains for the second day after China based Sichuan Hanlong Group revised its offer to $1.65 billion or 57 cents a share. The offer is 43% premium from the last close price and higher than the 50 cents a share previous offer.

BHP Billiton Ltd increased $1.27 to $35.13 and Rio Tinto Ltd added $1.30 to $60.30. Newcrest Mining Limited decreased $0.04 to $33.86. Lynas Corp added 6 cents to $1.

Fortescue Metals increased 19 cents to $4.68. Iluka Resources increased 73 cents to $13.35 and Paladin Energy Ltd increased 5 cents to $1.17.

Oil Search Limited increased 20 cents to $5.67, Santos Limited added 48 cents to $11.36 and Woodside Petroleum added $1.29 to $32.80.

Commonwealth Bank of Australia closed unchanged at $43.51 and National Australia Bank added $0.32 to $21.78. ANZ edged up $0.19 to $19.17. Westpac increased $0.47 to $19.81.

Qantas Airways Limited closed unchanged at $1.38.

Transfield Services gained 16 cents to $1.97 after the company announced its share buyback.

David Jones Limited increased 4 cents to $2.88 and Wesfarmers fell $0.03 to $30.01.

Woolworths Limited decreased 23 cents to $24.18. James Hardie Industries SE decreased 5 cents to $5.40.

Stockland rose 1 cent to $2.97 and Westfield Group decreased 13 cents to $7.26.