Australian Stocks Up 3%; Macquarie Drops

123jump.com Staff
04 May, 2009
New York City

Stocks in Australia surged, despite a record fall in home prices in the first quarter ending in March. Jobs ads in newspapers and on the Internet dropped 7.5% in April and plunged nearly half from a year ago. Macquarie Group sold 20 million shares at A$27.00 a share and raised A$540 million.

[R]3:00AM New York, 5:00PM Sydney – Stocks in Australia surged, despite a record fall in home prices in the first quarter ending in March. Jobs ads in newspapers and on the Internet dropped 7.5% in April and plunged nearly half from a year ago.[/R]

Stocks in Australia gained as miners and commodities prices increased. Stocks in China, Hong Kong and other smaller markets in Asia increased on the hopes that recent manufacturing data in China indicate stabilization in manufacturing sector.

The Australian home prices fell at a record pace of 6.7% in the first quarter ending in March from a year ago and declined 1.2% from the fourth quarter. The existing home prices declined at 3.9% in the fourth quarter and the price decline intensified in the first quarter as Australia entered in its first recession in nearly 25 years.

Perth led the decline with a loss of 10.1% and home prices in Sydney fell 7.3%.

The ASX 200 index in Australia increased 113.40 or 3.01% closed to 3,883.00. The Australian dollar gained and closed at 73.67 U.S. cents and 2-year government bond yield was 3.26%.

Stocks in Hong Kong and Shanghai surged after the release of manufacturing index data. The private sector measure of manufacturing industry from CLSA showed its first monthly gain. The April gain was also registered in the monthly manufacturing index reported by China on Friday, its second monthly gain in a row.

The economic data lifted indexes in the region and commodities prices.

Over the weekend the ASEAN group of nations and Japan agreed to set up $120 billion of reserve to fund to provide emergency loans to the companies in the region. The agreement in Bali, Indonesia lifted confidence in Asian financial markets.

Australian Miners Rise

In Australian trading, BHP Billiton gained 2.3%, Rio Tinto Group surged 4.9% and Woodside Petroleum Ltd increased 5.4%.

ASX Ltd. surged 6.2% on the media reports that the company is looking to relax listing rules to facilitate capital raising for small companies.

Macquarie Group Ltd declined 1.6% to A$34.01 after it missed its earnings estimate. The group reported annual net income of A$871 million and earnings per share of A$3.10. Return on equity for the year was 9.9%.

The group also sold 20 million shares at A$27.00 a share and raised A$540 million.

Index Gainers & Losers

Of the stocks in the ASX 200 index, 159 increased, 31 declined and 10 were unchanged.

Lynas Corp Ltd led decliners in ASX 200 index, with a loss of 5.6% followed by losses in Macquarie Office Trust of 5.1%, in Singapore Telecom of 4.1%, in Stockland of 3.5%, in Babcock & Brown of 3.2%.

Kagara Ltd led gainers in the ASX 200 index with a rise of 31.1% followed by gains in ROC Oil Company of 21.1%, in Western Areas of 16.6%, in Gindalbie Metals of 16.4% and in Mincor Resources of 16.1%.

Asian Markets Review

The Hang Seng index in Hong Kong increased 860.06 or 5.54% closed to 16,381.05, CSI 300 index in China higher 91.38 or 3.48% closed to 2,714.30. ASX 200 index in Australia increased 113.40 or 3.01% closed to 3,883.00. The KL Composite index in Malaysia higher 18.62 or 1.88% closed to 1,009.36.The Markets of Tokyo were closed today.

The Kospi Index in South Korea increased 28.56 or 2.09% to close at 1,397.92. SET index in Thailand closed higher 14.57 or 2.96% to 506.26 and JSE Index in Indonesia increased 58.56 or 3.39% closed to 1,788.15. The Sensex index in India increased 731.50 or 6.41% closed to 12,134.75.