Australian Trade Surplus Rises

123jump.com Staff
05 Mar, 2009
New York City

Australian trade surplus rises to A$970 million in January. Tight credit conditions weighed on housing approvals and dropped 3.7% to 9,312 units in January. The Australian regulator extends ban on covered short-selling of financial securities.

[R]3:00AM New York, 7:00PM Sydney - Australian trade surplus rises to A$970 million in January. Australian housing approvals fall 3.7% to 9,312 units in January. ASIC extends ban on covered short-selling of financial securities.[/R]

Australian stocks rose marginally in volatile trade as resource stocks leapt after Chinese Premier Wen Jiabao announced China’s spending will increase 25% to sustain 8% economic growth.

Crude oil prices increased 9% to $45.40 per barrel and copper prices soared to $1.6665 per ton.

However market gains were trimmed after exports fell 5% in January.

In Sydney trading ASX 200 index rose 0.7% or 22.1 to 3,188.50.

Of the ASX 200 index stocks, 104 increased, 80 declined, and 16 were unchanged. Linc Energy led gainers in the index shares with a rise of 23% after crude oil prices gained 9% to 45.4 per barrel on optimism China’s economy will rebound.

Other commodity-related stocks gained. Murchison Metals rose 9.2%, Equinox Mine-CDI soared 6.3% and Riversdale Mining rallied 5.6%.

Australian Surplus Rises

Australia Bureau of Statistics reported today that the country’s balance of goods and services in seasonally adjusted terms increased A$553 million from December to A$970 million in January on the decline in goods and service imports, especially in capital goods and intermediate and other goods.

Exports of goods and services fell 5% to A$24.2 billion as non-rural goods plunged 8%, rural goods 3% and other goods increased 7%. Service exports edged up A$21 million.

The statistics bureau says the fall in non-rural goods was driven by coal, coke and briquettes dropping 19%.

In the period imports of goods and services in seasonally adjusted terms declined 7% to A$23.3 billion after intermediate and other merchandise goods dropped 12%, capital goods 15% and consumption goods 3%.

However, other goods increased 30% and services imports tumbled 2%.

Intermediate and other merchandise goods with the largest falls were fuels and lubricants, declining 15% and processed industrial supplies falling 16%.

Australia Total Residential Approvals Drops

Separately, the statistics bureau says the total dwelling units approved in seasonally adjusted terms fell 3.7% from a month ago and 33.5% in the same period a year ago to 9,312 units.

Private houses approved advanced 1.1% on the month and fell 22.5% from a year earlier to 7,042 units, while private sector other dwellings slipped 15.4% from a month ago and dipped 54.5% from the comparable year ago period to 2,054 units.

In addition, the seasonally adjusted estimate for the value of total building approved declined 3.4% in January and the value of new residential building approved fell 4.3%.

However, the value of alterations and additions rose 0.7% and the value of non-residential building fell 3.2%.

ASIC Extends Ban on Covered Short Selling

Australian Securities and Investment Commission reported today that it has extended the ban on covered short selling of financial securities to the end of May as global financial markets remain volatile.

Australia, UK and US, the traditional free market economies had refrained in the past in interfering with the market operations. However, regulator ban in short selling which was supposed to shore up the faltering bank stocks have fallen further on mounting losses.

""""In making its judgement to again extend the ban, ASIC weighed up the continued volatility in global financial markets and potential damage from aggressive or predatory practices from short selling against the possible loss of some market efficiency or price discovery,"""" said the ASIC.

Gainers & Losers

Linc Energy led gainers in the ASX 200 index shares with a rise of 23% followed by increases in PanAust of 15.6%, in Roc Oil of 15.2%, in Macquarie Communications of 11.3%, and GPT Group of 11.1%.

Linc Energy and other commodity stocks rose as crude oil prices advanced 9% to $45.4 per barrel.

Pacific Brands led decliners in the ASX 200 index shares with a decline in 14.7%, in Tishman Speyer of 12.9%, in Valad Property of 10%, in Centro Retail Group of 9.4%, and Lihir Gold of 9.4%.

Lihir Gold fell after gold prices shed 0.8% to $906 per ounce.