New Zealand GDP Shrinks; HFA Plunges

123jump.com Staff
23 Dec, 2008
New York City

For the third straight quarter New Zealand GDP declined. In the quarter ending in September, economy shrank 0.4% after dropping 0.2% in the previous quarter. The economy also declined 0.1% from a year ago, a first annual decline in a year. HFA Holdings plunged after it halted redemptions.

[R]3:00AM New York, 7:00PM Sydney- HFA Holdings suspends redemptions for three funds.[/R]

Australian market averages fell led by HFA Holdings after the company suspended redemptions from three funds on deteriorating liquidity in its investment portfolio.

In Sydney trading ASX 200 index fell 0.7% or 26 to 3,531.40.

Of the ASX 200 index stocks, 90 rose, 93 declined, and 17 were unchanged. Bunnings Warehouse led advancers in the index shares with a rise of 12.9% followed by a rise in Babcock & Brown of 10.3%.

HFA Holdings Suspends Redemptions

HFA Holdings Ltd reported today that it has suspended redemptions from the HFA Diversified Investments Fund, the HFA Octane Fund and the HFA Octane Fund Series 2 effective yesterday “due to deteriorating liquidity in underlying investments.”

HFA also said redemptions from LDF, which operates in the U.S., will be treated differently as a part of redemption will be transferred to a special purpose vehicle designed to hold less liquid investments until they are liquidated.

Bendigo and Adelaide Raises A$175 million

Bendigo and Adelaide bank reported today it has raised A$175 millio to lift its tier one capital ratio to 8%.

Bendigo raised A$95 million through the institutional placement and A$80 million priced at A$10 per share.

The bank earlier reported that it is considering buying 3.7 million shares in IOOF Holdings and 20 million shares in Australian Wealth Management for A$32 million.

The bank will have 8% equity in the merged entity between IOOF and Australian Wealth Management. Bendigo & Adelaide closed down 5.4%.

Gainers & Losers

Bunnings Warehouse led advancers in the ASX 200 index shares with a rise of 12.9% followed by increases in Babcock & Brown of 10.3%, in ING Industrial of 10%, in Ten Network of 9.6%, and IOOF Holdings Ltd. of 9.4%.

HFA Holdings led decliners in the ASX 200 index shares with a drop of 55.2% followed by losses in Babcock & Brown of 11.3%, in Envestra Ltd. of 9.1%, Lynas Corp. of 8.6%, and Macquarie Airport of 8%.

Commodity stocks declined as oil prices slipped $2.45 to $39.90 a barrel. Felix Resources declined 5.2% and Rio Tinto shed 5.4%.

AGL Energy to Bid for Sydney Gas

The Australian newspaper reported today that AGL Energy requested for a trading halt in its shares. The company is expected to announce a merger with Sydney Gas. Sydney Gas requested a trading halt today.