IMF Lifts Australian Economic Forecast

123jump.com Staff
25 Jun, 2009
New York City

Stocks in Australia rebounded after the IMF revised its economic outlook. The Australian dollar gained on the forecast. Energy related stocks closed higher. BHP Billiton may sell its nickel mining operations in Western Australia.

[R]7:00 PM Sydney – Stocks in Australia rebounded after the IMF revised its economic outlook. The Australian dollar gained on the forecast. Energy related stocks closed higher. BHP Billiton may sell its nickel mining operations in Western Australia.[/R]

Stocks in Sydney trading rebounded after the International Monetary Fund estimated better than previous outlook for Australian economy. The Australian dollar gained on the forecast.

The IMF estimated a decline of 0.5% in 2009 from its April forecast of 1.4%. The 2010 economic growth estimate was revised upwards to 1.5% from 0.6% in its April outlook. Government spending will revive the economic growth and consumers and corporations curb spending to lower their debts.

However, the OECD forecasted Australian economy to shrink 0.4% in 2009 and grow 1.2% in 2010.

The ASX 200 index in Australia increased 49.00 or 1.29% to 3,856.00 and Australian dollar gained to 80.01 U.S. cents from 79.69 cents.

Gainers & Losers

BHP Billiton Ltd increased 79 cents to A$34.52 on the speculation that the largest miner may be getting ready to sell Ravensthorpe nickel project in Western Australia. Rio Tinto increased 4.4% to A$51.79 and nickel miner Mincor Resources NL increased 2.7% to A$1.54.

Transfield Services Ltd declined 6.3% to A$2.40 after the company confirmed that it has lost its bid to provide network maintenance services for Yarra Trams.

Karoon Gas surged 11% to A$8.22, Arrow Energy added 7.2% to A$3.57 and Sims Metal management soared 7.8% to A$25.59.

Ratings comments affected Atlas Iron and Nufarm. Atlans Iron Ltd surged 5% to A$1.70 after Goldman Sachs recommended the stock with “buy” rating and Nufarm dropped 8% to A$9.50 after the stock was lowered to “underperform” at Credit Suisse Group.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 205.76 or 2.15% to 9,796.08, Hang Seng index in Hong Kong increased 382.88 or 2.14% to 18,275.03, CSI 300 index in China lower 2.81 or 0.09% to 3,117.92. ASX 200 index in Australia increased 49.00 or 1.29% to 3,856.00. The KL Composite index in Malaysia closed higher 16.26 or 1.54% to 1,074.11.

The Kospi Index in South Korea increased 28.94 or 2.12% to close at 1,392.73.SET index in Thailand closed higher 9.17 or 1.58% to 590.60 and JSE Index in Indonesia increased 48.50 or 2.43% to 2,044.17. The Sensex index in India decreased 77.11 or 0.53 % to 14,345.62.