Australian Dollar in Favor; Hastie Drops 17%

Darlington Musarurwa
21 May, 2009
New York City

The Australian dollar added to its recent advances against other currencies as metals and energy prices firm. Hastie Group dropped 17% after it completed its offering to raise A$60 million. Seek Limited increased after it completed the acquisition of China based online employment company.

[R]7:00 PM Sydney, Australia – The Australian dollar added to its recent advances against other currencies as metals and energy prices firm. Hastie Group dropped 17% after it completed its offering to raise A$60 million. Seek Limited increased after it completed the acquisition of China based online employment company.[/R]

The Australian dollar advanced reflecting a rise in metals and energy prices and positive outlook for the exports to China. The recent gains in the Australia dollar has prompted several analysts to predict the dollar to climb another 5% higher on the expectations that China and India and other emerging markets will recover faster.

The Australian dollar increased 0.3% to 77.73 U.S. cents as copper, zinc and nickel prices firmed in metals markets.

The ASX 200 index in Australia decreased 10.70 or 0.28% closed to 3,813.90.

The gold advanced to as high as A$943 in Sydney trading after the U.S. dollar declined. The latest minutes of meeting from the U.S. Federal Reserve estimated deeper economic decline in the current year and a slower recovery in the years 2010 and 2011.

Gainers & Losers

Hastie Group Limited declined 16.5% to A$1.24 after the commercial refrigeration and air-conditioning services provider raised A$60 million from institutional investors and plans to raise additional A$17 million from retail investors.

Rio Tinto Plc increased 2.9% to A$66.64 after Sydney Morning Herald reported the China based Chalco may take slower stake in the company to win the government approval.

Seek Limited increased 6.7% to A$3.82 after Morgan Stanley raised its outlook on the online employment site. The company recently completed offering of A$100 million and acquired the remaining stake in the employment site based in China, Zhaopin Limited.

Earnings Review

Melco Crown Entertainment Limited, the Hong Kong-based casino operator reported first quarter revenues fell 55% to $216.5 million from $482.9 million a year ago. Net loss in the quarter was $35.3 million or 8 cents per ADS compared to net profit of $43.2 million or 10 cents per ADS a year ago.

ASX 200 Index Movers

Hastie Group Limited led the decliners in the ASX 200 index of 12.5% followed by losses in Babcock & Brown Infrastructure Group of 9.6%, in SP AusNet of 8.8%, in ConnectEast Group of 5.7% and in Elders Limited of 5.4%.

AWB ltd led gainers in the ASX 200 index with a rise of 14.2% followed by gains in NRW Holdings Limited of 8.7%, in Minara Resources Limited of 8.6% and OM Holdings Limited of 7.6%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 80.49 or 0.86% to 9,264.15, Hang Seng index in Hong Kong decreased 276.35 or 1.58% closed to 17,199.49, CSI 300 index in China lower 62.86 or 2.23% closed to 2,750.01. ASX 200 index in Australia decreased 10.70 or 0.28% closed to 3,813.90. The KL Composite index in Malaysia lower 7.07 or 0.68% closed to 1,035.56.

The Kospi Index in South Korea decreased 14.05 or 0.98% to close at 1,421.65. SET index in Thailand closed lower 12.64 or 2.25% to 548.77.The Sensex index in India decreased 324.12 or 2.31% closed to 13,736.54. The Markets of Indonesia were closed today.