Strength in Australian Dollar; Gold Miners Rise

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

Australian stocks declined on the weakness in mining and energy stocks. Gold linked stocks closed higher as gold price increased. The rising national debt in the U.S. and UK added strength to Australian dollar.

[R]9:00 PM Sydney – Australian stocks declined on the weakness in mining and energy stocks. Gold linked stocks closed higher as gold price increased. The rising national debt in the U.S. and UK added strength to Australian dollar.[/R]

The talks of debt downgrade for UK in the near future and in the long term future for the U.S. strengthened the sentiment for Australian dollar and precious metals.

Australian dollar increased to 76.88 U.S. cents and is likely to cross 80 cents in the near future.

In stock trading, ASX 200 index decreased 52.30 or 1.37% closed to 3,761.60. Miners and energy stocks declined.

Gainers & Losers

The strength in Australian dollar and rise in precious metal prices lifted select mining stocks.

The on-going saga of Chalco investment in Rio added volatility to BHP Billiton and Rio Tinto stocks. BHP Billiton edged 2.7% lower to A$33.46 and Rio Tinto Limited declined 3.3% to A$64.44.

Coca-Cola Amatil dropped 11 cents to A$8.60 after it estimated better than previously forecasted earnings in the first half on recent hot summer. The company 30% controlled by Coca Cola sees first half operating profit to increase in high single digit and does not have any refinancing requirements in the next twelve months.

Gold mining stocks closed higher after gold closed above $350 an ounce. Sino Gold Mining Ltd. surged 8.3% to A$6.03, Lihir Gold Ltd. increased 1.6% to A$3.20 and Newcrest Mining closed up 13 cents to A$31.95.

Virgin Blue increased 1 cent to 26 cents after its April passengers increased compared to a year ago. Qantas declined 3.5 cents to A$1.88. British Airways reported annual loss of 375 million pounds.

Woodside Petroleum Ltd. declined 4.5% to A$42.41 and Santos declined 3.7% to A$14.18. The oil market recently

Retailers declined. Harvey Norman dropped 4 cents to A$2.96 and David Jones fell 14 cents to A$3.58 and Woolworth edged 30 cents lower to A$25.83.

ASX 200 Index Movers

Emeco Holdings Limited led the decliners in the ASX 200 index of 8.7% followed by losses in FKP Property Group of 8.7%, in Minara Resources Limited of 8.7%, in Boart Longyear Group of 7.6% and in Goodman Group of 7.6%.

Sino Gold Mining Limited led gainers in the ASX 200 index with a rise of 8.2% followed by gains in Elders Limited of 7.6%, in Sunland Group, Inc. of 6.7% and AWB Ltd of 6.4%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 38.34 or 0.41% to 9,225.81, Hang Seng index in Hong Kong decreased 136.97 or 0.80% closed to 17,062.52, CSI 300 index in China lower 9.33 or 0.34% closed to 2,740.68. ASX 200 index in Australia decreased 52.30 or 1.37% closed to 3,761.60. The KL Composite index in Malaysia higher 9.70 or 0.94% closed to 1,045.26.

The Kospi Index in South Korea decreased 17.90 or 1.26% to close at 1,403.75. SET index in Thailand closed higher 5.25 or 0.96% to 554.02 and JSE Index in Indonesia decreased 4.01 or 0.21% closed to 1,881.71. The Sensex index in India increased 150.61 or 1.10% closed to 13,887.15.