Billabong Offering; Gloucester Coal Up 18%

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

Stocks in Australia declined tracking losses in metal prices. Billabong International lowers earnings outlook and proposed offering to raise A$290 million. Gloucester Coal surged after it agreed to a higher offer from Noble Group.

[R]7:00PM Sydney – Stocks in Australia declined tracking losses in metal prices. Billabong International lowers earnings outlook and proposed offering to raise A$290 million. Gloucester Coal surged after agreed to a higher offer from Noble Group.[/R]

Stocks in Australia declined on a weakness in copper and other base metal prices and a fall in crude oil and natural gas prices. Australian dollar edged higher to 75.55 U.S. cents despite the weakness in metals markets and in the region trading.

ASX 200 index in Australia decreased 37.60 or 1.00% closed to 3,735.60.

Gainers & Losers

Billabong International Limited requested trading halt after it lowered its annual earnings estimate to between $160 million and $165 million on continued weakness in the U.S. markets. The company also plans to raise A$290 million in an offering at 29% discount to be priced at A$7.50 a share.

The Gold Coast, Australia based surfwear maker will raise A$200 million from institutional investors and the rest from retail investors in a rights offering under 2-for-11 terms.

Gloucester Coal Ltd surged 18% to A$6.94 after the company agreed to a higher offer of A$7 a share that valued the company at A$572 million.

OZ Minerals Ltd gained 5.5% to 76 cents after National Development and Reform Commission approved that China Minmetals Nonferrous Metals Co. Ltd may purchase the assets of the company.

Valad Property Group dropped 15.6% to 6.5 cents after it reported that its co-founder Stephen Day resigned from the company.

ASX 200 Index Movers

Valad Property Group Fund led the decliners in the ASX 200 index of 15.5% followed by losses in Kagara Ltd of 13.8%, in Babcock & Brown Infrastructure Group of 13.1%, in Panoramic Resources Limited of 10.2% and in Asciano Group of 9.5%.

Gloucester Coal Ltd led gainers in the ASX 200 index with a rise of 17.8% followed by gains in Abacus Property Group of 8.7%, in Ausenco Limited of 8.6% and Commonwealth Property Office Fund of 7.3%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 226.33 or 2.44% to 9,038.69, Hang Seng index in Hong Kong increased 232.21 or 1.38% closed to 17,022.91, CSI 300 index in China higher 14.46 or 0.52% closed to 2,810.57. ASX 200 index in Australia decreased 37.60 or 1.00% closed to 3,735.60. The KL Composite index in Malaysia lower 2.20 or 0.22% closed to 1,012.01.

The Kospi Index in South Korea decreased 5.05 or 0.36% to close at 1,386.68. SET index in Thailand closed higher 6.30 or 1.18% to 540.22 and JSE Index in Indonesia increased 52.65 or 3.01% closed to 1,803.57. The Sensex index in India increased 2,110.79 or 17.34% closed to 14,284.21.