Australia Extends Chinalco Date

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

Shares in Australia edged up to close marginally higher on Monday as news of G20 commitment to support global financial systems neutralized the effect of declines in oil prices.

[R]3:00AM New York, 7:00PM Sydney- Australia extends review of Chinalco’s proposed acquisition of Rio Tinto assets.[/R]

Australian market averages rose marginally, buoyed by financial stocks after the G20 finance ministers and central bank governors said on Saturday they are prepared to take whatever action is necessary to ensure the stability of systematically important institutions.

The G20 also committed to use “the full range of monetary policy instruments, including unconventional policy instruments"""""""" to support growth.

Gains were, however, pared as crude oil prices dropped after the OPEC opted not to undertake further production cuts.

In Sydney trading ASX 200 index rose 0.1% or 3.2 to 3,348.40.

Of the ASX 200 index stocks, 120 increased, 67 declined, and 13 were unchanged. Goodman Group led gainers in the index shares with a rise of 33.3% followed by FKP Property gaining 32.4%.

Australia Extends Chinalco’s Proposal Review

Australia’s general manager of the Foreign Investment and Trade Policy Division of the Treasury Patrick Colmer said Monday in a gazette the government has prohibited the proposed acquisitions, agreements and arrangements worth $19.5 billion by Aluminium Corporation of China (Chinalco) into Rio Tinto for the period of 90 days.

On February 13 Chinalco gave notice to the government and lodged associated correspondence and documents, revealing intentions to make acquisitions- either directly or through subsidiaries- into Rio Tinto.

NZ Manufacturing Sales Drops 5.4% in December

Statistics New Zealand reported today that the country’s volume of manufacturing sales in seasonally adjusted terms declined 5.4% in the three months to December, dropping for the fourth straight quarter.

However, the seasonally adjusted value of manufacturing sales slipped a marginal 0.1% in the December quarter from an increase of 1.3% in the three months to September.

In the same period, the sales volume of manufacturing was dragged by meat and dairy products, petroleum and industrial chemicals, basic metals, and transport equipment. Only three of the 15 industries recorded increases, which were all minor compared with the decreases.

Meat and dairy product manufacturing industry fell 6% in the seasonally adjusted sales volume in the latest quarter and advanced 5.3% in the sale values.

The report notes that dairy prices rose during the quarter, while meat prices declined.

Gainers & Losers

Goodman Group led gainers in the ASX 200 index shares with a rise of 33.3% followed by increases in FKP Property Group of 32.4%, in Boart Longyear Group of 22.5%, in Valad Property of 21.9% and GPT Group of 19.7%.

Santos Ltd. led decliners in the ASX 200 index shares with a fall of 6.8% followed by losses in Babcock & Brown of 6.8%, in Hastings Diversified Utilities of 5.7%, in Leighton Holdings of 5.4%, and Gindalbie Metals of 5.1%.

Energy stocks plummeted after crude oil prices slipped 1.7% to $46.3 per barrel as the OPEC opted to forgo further production cuts. Woodside Petroleum shed 4.6%, Origin Energy tumbled 4.5% and Linc Energy dipped 3.9%.