Stocks in Sydney Fall; Goodman, Atlas Iron Surge

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

Australian stocks declined after metals closed lower. Goodman Group surges on talks of investment from China. Atlas Iron Limited surged 17% after it proposed public offering of A$117 million to fund iron ore mining expansion.

[R]7:00 PM Sydney – Australian stocks declined after metals closed lower. Goodman Group surges on talks of investment from China. Atlas Iron Limited surged 17% after it proposed public offering of A$117 million to fund iron ore mining expansion.[/R]

Stocks in Australia fell after the weakness in base metal prices and in global markets. Over the weekend, the ministers of G-8 nations debated the plans to withdraw economic stimulus. The talks of lower government spending lowered metals prices.

Record decline in European production also put investors on caution.

In London trading copper declined 2.5%, nickel fell 0.7% and zinc closed down 1.74%.

ASX 200 index in Australia decreased 30.50 or 0.75% to 4,031.70.

Gainers & Losers

Atlas Iron Limited surged 17.7% to A$2 after it proposed to raise A$117 million and expand its mining operations to support sales to China.

Goodman Group surged 9% to 49 cents after it said China Investment Corp may invest as much as A$2 billion in the next two to three years. The news was first reported by the Australian Financial Review.

BHP Billiton ((BHP)) decreased 2.7% to $37, Rio Tinto Limited declined 2.2% to $75.50 and Fortescu Metals Group plunged 7.2% to $3.85.

Woodside Petroleum Limited declined 1.6% to $42.20 after crude oil prices fell on weak industrial production report from Europe.

Aquila Resources decreased 5.6% to $5.73 and Murchison Metals dropped 7.5% to A$1.99.

ASX 200 Index Movers

Challenger Financial Services Group Limited led the decliners in the ASX 200 index of 7.9% followed by losses in Murchison Metals Limited of 7.4%, in Independence Group NL of 7.4%, in Fortescue Metals Group Ltd of 7.2% and in ING Office Fund of 6.8%.

Boart Longyear Group led gainers in the ASX 200 index with a rise of 28.5% followed by gains in Atlas Iron Limited of 17.6%, in PMP Ltd of 10.9% and Elders Ltd of 10.0%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 96.15 or 0.95% to 10,039.67, Hang Seng index in Hong Kong decreased 390.72 or 2.07% closed to 18,498.96, CSI 300 index in China higher 59.91 or 2.06% closed to 2,966.19. ASX 200 index in Australia decreased 30.50 or 0.75% to 4,031.70. The KL Composite index in Malaysia edged higher 1.02 or 0.09% to 1,091.17.

The Kospi Index in South Korea decreased 16.17 or 1.13% to close at 1,412.42.SET index in Thailand closed lower 16.63 or 2.65% to 611.92 and JSE Index in Indonesia decreased 21.07 or 1.01 % closed to 2,069.88. The Sensex index in India decreased 362.42 or 2.38% closed to 14,875.52.