Australian Dollar Gains, Second Annual Home Price Decline in 2012

Marcus Jacob
02 Jan, 2013
New York City

Australian markets traded higher and stocks gained on the first day of trading. The Aussie dollar gained against the U.S. dollar and Japanese yen after iron ore prices rose to a new 8-month high.

[R]7:30 PM Sydney – Australian markets traded higher and stocks gained on the first day of trading. The Aussie dollar gained against the U.S. dollar and Japanese yen after iron ore prices rose to a new 8-month high.[/R]

Stocks in Sydney traded higher on the first day of trading after international markets rose as U.S. lawmakers settled budget negotiations in the last ditch efforts.

Manufacturing activity declined for the tenth month in a row in December. The Australian Industry Group performance of manufacturing index was unchanged to 44.3 in December, below 50 indicates a contraction.

Iron ore prices in the spot market increased to a new 8-month high.

The ASX 200 index climbed 57 or 1.2% to 4,705.90 and the broader All Ordinaries increased 58.29 to 4,722.90.

Australian dollar backed off from its 3-month high to $1.047 and rebounded from a 2-year low.

Australian Property Prices Ease

Australian property prices declined for the second year in a row according to the researcher RP Data-Rismark.

The research outfit said prices declined 0.4% in 2012 after falling 3.8% in 2011. The back-to-back decline is the first since the data collection began in 1996.

The median home price across Australia was $483,000, near record high and new home buyers are concerned about the market risk.

Home prices in Sydney increased 1.5% and Perth rose 0.8% but declined 2.9% in Melbourne. Property prices surged 8.9% in Darwin. Prices are expected to stay near recent highs at lease for another two years according to several property analysts.

Stock Movers

Resource stocks jumped after iron ore prices rose 4% to US$144.90 a ton, a new high in eight month on the expectations of rising demand from India and sustained growth in China.

BHP Billiton Limited jumped 74 cents to $37.84 and Rio Tinto Limited climbed $1.61 to $67.62. Fortescue Metals soared 27 cents or 5.8% to $4.92.

Newcrest Mining advanced 80 cents to $22.98. Kingsgate gained 17 cents to $4.57 and Whitehaven Coal increased 8 cents to $3.58.

Gindalbie Metals soared 10% to 27.5 cents after the mining company shipped magnetite concentrate to China from Karara iron ore project.

Transfield Services down 1 cent to $1.94 and engineering contractors WorleyParsons climbed 43 cents to $23.79.

Monadelphous Group jumped 57 cents to $24.99 and Downer EDI gained 7 cents to $4.12.

Lend Lease increased 16 cents to $9.44.

Oil Search Limited up 5 cents to $7.06 and Santos Limited added 1 cent to $11.11.

Woodside Petroleum advanced 49 cents to $34.37 and Origin Energy Limited gained 11 cents to $11.73.

Woolworths increased 19 cents to $29.52 and Kathmandu lowered 1 cent to $1.57.

David Jones Limited added 2 cents to $2.38 and Wesfarmers increased 26 cents to $37.11. Breville Group slipped 3 cents to $6.62.

Commonwealth Bank of Australia jumped 54 cents to $62.72 and Bank of Queensland gained 9 cents to $7.44 and ANZ up 4 cents to $25.09. National Australia Bank increased 10 cents to $25.10. Westpac added 6 cents to $26.10.

Toll Holdings rose 6 cents to $4.62, Leighton advanced 30 cents to $18.18 and property developer Mirvac Group up 2 cents to $1.50.

Westfield Group increased 13 cents to $10.69.