Australian Stocks Edge Higher

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

Australian stocks rose 0.3% on rising metal and energy prices. Investors were also bullish after a private survey indicated that three quarters of first time home buyers are planning to buy a house because of a government grant, low interest rates and affordable prices.

[R]3:00AM New York, 7:00PM Sydney - Australian first-time home buyers sounded optimistic outlook. New Zealand construction works fall 6.5% in December quarter.[/R]

Australian stocks rose 0.3% on rising metal and energy prices.

Investors were also bullish after a private survey indicated that three quarters of first time home buyers are planning to buy a house because of a government grant, low interest rates and affordable prices.

In Sydney trading ASX 200 index increased 0.3% or 9 to 3,154.50.

Of the ASX 200 index stocks, 78 gained, 94 declined, and 28 were unchanged. Line Energy led gainers in the index shares with a rise of 38% followed by AWB Ltd. advancing 22%.

New Zealand Construction Works Falls 6.5%

Statistics New Zealand reported today that the country’s volume of all building work put in place declined 6.5% in three months to December in seasonally adjusted terms, falling the most since March 2002.

However the 13.4% decline in the volume of residential building work was offset by a 1.6% jump in non-residential building work.

According to the report, the unadjusted volume of all building work put in place fell 7.5% to NZ$12.5 billion in the same period a year earlier as residential building work contributed NZ$7.3 billion and non-residential building work weighed in with NZ$5.2 billion.

First Time Home Buyers More Optimistic

The Australian reported today that information from the 2009 Mortgage Choice survey indicate that 76% of respondents of a survey of 1012 first home buyers are planning to buy a house on affordable properties, lower interest rates and first homeowners grant.

About 16% are targeting flats and 8% of respondents intend to buy a home before the end of the year will rely on the government’s grant.

A further 8% have not started saving but contend they will do so before buying.

The survey also notes that 52% of the first time home buyers are concerned by the time it will take to repay a mortgage and 47% are concerned about not making the repayment.

In addition, 71% said they will make sacrifices to buy a home from 91% a year ago and 93% of the respondents said reducing spending is the greatest form of sacrifice.

Mortgage Choice senior corporate affairs manager Kristy Sheppard said, ""Australians who are about to buy their first home appear to be entering the market with more confidence than their predecessors.""

Gainers & Losers

Linc Energy led gainers in the ASX 200 index shares with a surge of 38% followed by increases in AWB Ltd. of 22%, in Macquarie Office of 21.3%, in Valad Property of 12.5%, and Macquarie DDR of 11.1%.

Linc Energy rose after crude oil prices rallied 4.2% to $45.50 per barrel.

Other commodity-related stocks increased after gold prices edged up 1.6% to $942.70 per ounce. Beach Petroleum rallied 6.1% and BHP Billiton jumped 5.3%.

Hastings Diversified Utilities led decliners in the ASX 200 index shares with a fall of 34% followed by losses in GPT Group of 14.8%, in Goodman Group of 13.9%, in Centro Retail Group of 13.8%, and Challenger Financial of 12%.