Australian Trade Surplus Falls; September Tourists Arrivals Flat

Marcus Jacob
08 Nov, 2011
New York City

Australian stocks closed higher and the dollar declined. Trade surplus in September declined to A$2.56 billion after exports fell 3% and imports edged down 1%. Short term tourist arrivals were nearly flat in the month at 500,600.

[R]6:00 PM Sydney – Australian stocks closed higher and the dollar declined. Trade surplus in September declined to A$2.56 billion after exports fell 3% and imports edged down 1%. Short term tourist arrivals were nearly flat in the month at 500,600.[/R]

Australia’s trade surplus declined to $2.56 billion in September from $2.953 in August. In the month the exports declined 3% and imports fell 1%.

The ASX 200 index rose 20.4 or 0.5% to 4,293.8 and All Ordinaries index increased 0.5% or 21.4 to 4,356.70.

The Australian dollar fell 0.5% to US$1.031 and gold price gained 2.2%.

In trading, 1.48 billion shares changed hands worth $3.81 billion and 534 stocks gained, 420 decreased and 380 were unchanged.

Australian short term tourist arrivals in September were steady at 500,600 compared to 500,200 a year ago.

The data released by the Australian Bureau of Statistics showed that total arrival in the year to the month of September were 5.89 million, an increase of 87,600 from the year ago period.

Stock Movers

BHP Billiton Ltd closed up $0.05 to $37.75 and Rio Tinto Ltd increased $0.97 to $69.77.

Newcrest Mining increased 34 cents to $36.06 and said it will issue US$1 billion of 10- and 30-year bonds to repay existing debt and fund new expansion projects.

Fortescue Metals Group increased 14 cents to $5.02, Lynas Corporation Limited closed unchanged at $1.15 and Iluka Resources rose 12 cents to $17.30.

Kingsgate increased 5 cents to $6.95 after the mining companies said it increased its stake in Chile based Laguna Resources to 83.5% from 69.9%.

Orica increased $0.24 to $25.65 and extended gains for the second day after it reported 4% increase in full-year earnings.

Oil Search Limited increased 1 cent to $6.39, Santos Limited rose 15 cents to $13.20 and Woodside Petroleum rose 10 cents to $36.20.

Carbon Conscious increased 1 cent to 40 cents after the federal government passed the carbon tax.

Cochlear Limited rose $0.28 to $52.

Commonwealth Bank of Australia closed up $0.36 to $49.68 and National Australia Bank increased 25 cents to $25.43. ANZ edged up 39 cents to $21.58. Westpac added 17 cent to $21.28.

David Turner, Chairman of Commonwealth Bank said Australia’s banks are not immune to the crisis in the euro zone in a prepared statement at the annual meeting today. He also said that the banks have build liquidity ahead of the crisis but if it lingers on access to the wholesale funding could be in jeopardy.

Two weeks ago bank regulators and Reserve Bank of Australia also urged 4 largest banks to devise a plan to withstand a financial market event that may freeze access to international markets.

David Jones Limited closed down 6 cent to $3.14 and Wesfarmers Limited decreased 8 cent to $32.32.

Westfield Group increased 13 cents to $7.85 after the retail malls operators confirmed its full-year earnings outlook and said business conditions have improved after a weak September.

Woolworths Limited increased 13 cent to $24.60 and James Hardie Industries SE decreased 4 cents to $6.11.

Qantas Airways Ltd closed up 1 cent at $1.62, Virgin Blue closed unchanged at 38.5 cents but Flight Centre rose 16 cents to $19.80.

Qantas resumed talks with the union workers and said it is committed to completing talks before the 21 day period set by the Fair Work Australia.

The airline completed its first round of talks with the licensed engineers union and is scheduled to talk to baggage handlers union tomorrow. Engineers union said that their pay dispute has been resolved but they are still fighting to retain 20 of the 128 positions eliminated.

The company chief executive is under fire from the lawmakers after Alan Joyce grounded the entire fleet to bring the union to the negotiating table mediated by the industrial tribunal.