Australian Markets Edge Lower; 15% Rise in Commodities Exports

Marcus Jacob
13 Dec, 2011
New York City

Australian exports of commodities in the current fiscal year is estimated to increase 15% to $206 billion on 13% increase in iron ore and 14% rise in thermal coal exports. Stocks edged lower on the euro zone worries and a weakness in the international markets.

[R]8:00 PM Sydney – Australian exports of commodities in the current fiscal year is estimated to increase 15% to $206 billion on 13% increase in iron ore and 14% rise in thermal coal exports. Stocks edged lower on the euro zone worries and a weakness in the international markets.[/R]

Australian stocks traded lower on the worries that the euro zone troubles are far more entrenched and the latest fiscal pact among the member nations may not avert the region sliding into a recession.

The ASX 200 index rose 49.8 or 1.2% to 4,252.8 and All Ordinaries index increased 1.1% or 47.3 to 4,311.40. The Australian dollar edged lower to US$1.017.

In trading, stock turnover decreased to 1.67 billion shares worth $4.15 billion and for every share that rose three shares closed lower.

Despite the gloom in the euro zone and weakening sentiment in the international markets, the Australian commodities exports are expected to be healthy in the current fiscal year.

The Bureau of Resources and Energy Economics, the federal government agency said exports in the second half are estimated to be strong.

Exports of coal, iron ore and other commodities in the fiscal year 2011-12 is estimated to increased 15% to $206 billion on 14% increase in thermal coal exports, 13% rise in iron ore and 12% gain in gold exports.

Bureau of Agriculture and Resource Economics, another federal government agency estimated farm exports to jump 6% to $34.5 billion and including fishery and forestry products exports are estimated to increase to $38.4 billion.

Thai floods helped rice exports to soar 210% and raw cotton exports is expected to increase 65% but traditional exports of wheat exports are estimated to increased 3% and barley exports by 12%.

Stock Movers

BHP Billiton Ltd fell $0.71 to $35.82 and Rio Tinto Ltd decreased $1.37 to $62.76. Newcrest Mining declined $0.45 to $32.18.

Rio Tinto won an arbitration that will hold its non-dilution rights in the Canada based mining company Ivanhoe in which it controls 49%. Ivanhoe earlier adopted a takeover defense plan that was tantamount to a poison pill and the latest ruling will permit Rio to go ahead with its plan to acquire additional shares in Ivanhoe as early as January.

Fortescue Metals Group increased 11 cents to $4.65, Lynas Corporation Limited closed down 7 cents to $1.28 and Iluka Resources declined $0.15 to $16.47.

Oil Search Limited traded down 9 cents to $6.37, Santos Limited fell 21 cents to $13.01 and Woodside Petroleum decreased $0.84 cents to $31.53.

Orica decreased 1.2% to $25.47 and the company said it resumed the production of ammonia nitrate at Kooragang Island location after a chemical leak shut down the operations in November.

Commonwealth Bank of Australia declined $0.48 to $49.35 and National Australia Bank decreased 61 cents to $23.75. ANZ edged down 21 cents to $20.74. Westpac fell 46 cents to $20.83.

David Jones Limited added 1 cent to $2.66 and Wesfarmers Limited fell 17 cents to $30.73 Harvey Norman Holdings closed down 1 cent to $2.08.

Ooh! Media Group gained 5% to 31 cents after the private equity group Champ Private Equity offered $163 million after completing the due diligence.

Woolworths Limited closed up 22 cents to $26.17.

Qantas Airways Ltd closed down 5 cents to $1.53, Virgin Australia closed unchanged at 35.5 cents and Flight Centre fell 8 cents to $19.27.

QBE Insurance Group Limited decreased 9 cents to $13.95.