Australian Indexes Gain 0.8%; Norsk Hydro Cuts Production

Marcus Jacob
11 Jan, 2012
New York City

Australian indexes closed higher on the optimism tracking the gains in the international markets and hopes of further monetary easing in China. High dollar forced more resource companies to halt materials processing and cut employment.

[R]8:00 PM Sydney – Australian indexes closed higher on the optimism tracking the gains in the international markets and hopes of further monetary easing in China. High dollar forced more resource companies to halt materials processing and cut employment.[/R]

The ASX 200 index closed up 35.30 or 0.8% to 4,187.5 and All Ordinaries index increased 36.3 or 0.9% to 4,242.9.

The Australian dollar edged lower and closed at US$1.017.

Investors were on the sidelines and trading volume declined to 1.6 billion shares worth $3.7 billion according to the data available from the Australian Stock Exchange.

The high dollar has affected more resources processing companies as the production cost rises. Norway based Norsk Hydro closed down one third of its production at the Kurri Kurri smelter in the Hunter Valley. The temporary shutdown will cut 150 jobs.

Norsk Hydro will cut its annual production by 60,000 tons from 180,000 tons of aluminum as the prices of aluminum have declined in the world markets and strong dollar.

Stock Movers

BHP Billiton Ltd rose 52 cents to $36.18 and Rio Tinto Ltd increased $0.99 to $64.19.

Rio Tinto eliminated 100 jobs at its Tomago smelter near Newcastle but said it will hold the production level of aluminum and not cut the output.

Fortescue Metals Group rose 12 cents to $4.69, Lynas Corporation Limited closed up 1 cent to $1.04 and Iluka Resources rose 81 cents to $16.90. Newcrest gained 57 cents to $32.75.

Oil Search Limited traded up 10 cent to $6.55, Santos Limited rose 11 cents to $12.74 and Woodside Petroleum increased $1 cents to $32.42.

Santos said it will halt oil production at it Mutineer-Exeter oil field at offshore location as Tropical Cyclone Heidi advances in Western Australia.

Commonwealth Bank of Australia increased 16 cents to $49.94 and National Australia Bank rose 7 cents to $23.57. ANZ edged up 33 cents to $21.08. Westpac inched higher 43 cents to $20.63.

David Jones Limited closed up 5 cents to $2.45 and Wesfarmers Limited increased 15 cent to $30.79. Harvey Norman Holdings closed up 3 cents to $1.96.

Woolworths Limited closed up at 12 cents to $25.62 and JB Hi-Fi Limited increased $0.13 to $11.76. Billabong International Ltd closed unchanged at $1.81 and Kathmandu fell 1 cent to $1.28.

Qantas Airways Ltd closed down 3 cents to $1.52, Virgin Australia closed unchanged to 30 cents and Flight Centre closed up 70 cents to $17.63.

QBE Insurance Group Limited decreased 15 cents to $13 and Insurance Australia Group increased 3 cents to $3.

QR National rose 2 cents to $3.54.