Australian Stocks Rebound on China Growth

123jump.com Staff
22 Jan, 2009
New York City

Stocks in Australia rebounded after China reported economic growth of 6.8%, the slowest in seven years, but China still managed to grow at a faster pace than all developed economies, lifted hopes of sustain commodities exports to the region. Woodside Petroleum estimated 75% profit rise.

[R]3:00AM New York, 7:00PM Sydney - Woodside Petroleum forecasts full year profit to jump 75% to A$1.8 billion.[/R]

Australian stock market benchmark index closed higher in choppy trading. Australian economy dependent on the exports to China as the country continues its urbanization.

China’s fourth quarter economic growth rose at the slowest pace in seven years at 6.8% and may slow further. But the economy still managed to increase, raising hopes that exports of commodities will be sustained to China.

In Sydney trading ASX 200 index rose 1.3% or 44 to 3,486.80.

Of the ASX 200 index stocks, 118 rose, 16 declined, and 16 were unchanged. St Barbara Ltd. led gainers in the index shares with a rise of 15.3% followed by Tishman Speyer increasing 14.3%.

Woodside Petroleum Profit Jumps

Woodside Petroleum, which is 34% owned by Royal Dutch Shell, reported today in its fourth quarter report for the period ended December 31 that preliminary annual profit will be 75% higher than 2007 between A$1.75 billion and A$1.8 billion.

The company reported that fourth quarter production increased 28% to 23.1 Mmboe from the comparable year ago period and sales jumped 26% to 22.6 Mmboe in the period. Revenues in the quarter increased 40% to A$1.6 billion from the same period a year ago.

Woodside also noted that for the full year ended December 31 revenues climbed 50% to A$5.9 billion on higher commodity prices, increased production and a weaker Australian dollar.

However the underlying second half profits are forecasted to be reduced by about A$260 million on the impact of the net effects of foreign exchange losses and an impairment charge on U.S. assets.

In addition, the annual profit is expected to be reduced by a write-down of the OceanWay development.

New Zealand Charge Card Transactions Decline

Statistics New Zealand reported today that the seasonally adjusted value of the total Electronic Card Transaction declined 0.7% in December from the previous month.

Similarly, the retail ECT series fell by 0.5%, while the value of the core retail ECT series increased 0.2% in December 2008.

According to the report, transactions fell on declines in the non-retail and fuel retailing industries. Declines were however offset by increases in the durables industry sales.

Total electronic transactions were 99 million in December 2008 with a value of NZ$5.6 billion.

Separately, a private report showed that Australia’s manufacturing index increased to 42.5 in December from 35.2 the previous month. A reading below 50 shows contraction, while a reading above 50 shows expansion.

Gainers & Losers

St Barbara Ltd. led gainers in the ASX 200 index shares with a rise of 15.3% followed by increases in Tishman Speyer of 14.3%, in Babcock & Brown of 11.4%, in Babcock & Brown of 9.5%, and Abacus Property of 8.9%.

Realty stocks gained. Valad Property advanced 6.3% and Australand Property edged up 6.1%.

Kagara Ltd. led decliners in the ASX 200 index shares with a fall of 9.2% following losses in HFA Holdings of 7.5%, in Boart Longyear Group of 6.7%, in Macquarie Countrywide of 6.1%, and Western Australia Newspaper of 5.4%.