Record Dailly Gains in Australia; Cochlear Drops

Mayank Mehta
14 Jul, 2009
New York City

Australian stocks recorded single day best gain in the last seven months on a global rally in stocks and optimism of better earnings. However, trading volumes were thin. Energy Resources, the largest uranium miner reported 44% increase in output. Cochlear plunged declined 4% after earnings.

[R]7:00 PM Sydney – Australian stocks recorded single day best gain in the last seven months on a global rally in stocks and optimism of better earnings. However, trading volumes were thin. Energy Resources, the largest uranium miner reported 44% increase in output. Cochlear plunged declined 4% after earnings.[/R]

Stocks in Australia rallied in thin trading on the optimism of U.S. banks earnings. The stock advance was sharpest for the year when measured on daily gains in the ASX 200 index.

The ASX 200 index in Australia increased 129.60 or 3.47% to 3,867.10. The Australian dollar increased to 78.50 U.S. cents and yields on government bonds increased at close to 3.8%.

The survey conducted of business in the last week in June showed a sharp rebound after a slump of more than 17 months according to the National Australian Bank. The index increased 6 points to positive 4 after hovering below zero for the most part of the last year and half.

The rebound in global markets and large government stimulus has lifted the sentiment across businesses.

Gainers & Losers

BHP Billiton increased 4.9% to $33.79 and Rio Tinto added 5.3% to $49.10. Coca Cola Amatil added 2.2% to $8.81.

Energy Resources increased 2.7% to $21.67 after it reported second quarter output of mined uranium increased 44%. The production increased to 1.481 million tons from 1.030 million tons a year ago.

Banks rallied in Australia following the leads of banks in Japan, Europe and the U.S. National Australia Bank increased 4.8% to $23, ANZ increased 4% to $16.38 and Commonwealth Bank increased 4.3% to $38.30.

Asciano Group declined 2.2% to $1.30 after its chief executive lowered his stake in the company to 4% from 11%.

Cochlear Ltd declined 4.1% to $52.08 after it reported annual net income increased 13% to $130.50 million on sales increase of 15% to $695 million. The unit sales of hearing aids increased 2% in the period, the slowest increase in at least five years.

ASX 200 Index Movers

Cochlear Limited led the decliners in the ASX 200 index of 4.1% followed by losses in ResMed Inc of 3.1%, in Asciano Group of 2.2%, in Macmahon Holdings Limited of 1.5% and in SMS Management & Technology Ltd of 0.7%.

ING Industrial Fund led gainers in the ASX 200 index with a rise of 16.6% followed by gains in Ten Network Holdings Limited of 11.7%, in Murchison Metals Limited of 11.0% and Mincor Resources NL of 10.9%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 211.48 or 2.34% to 9,261.81, Hang Seng index in Hong Kong increased 631.10 or 3.66% to 17,885.73 and CSI 300 index in China higher 93.74 or 2.79% to 3,454.75. The ASX 200 index in Australia increased 129.60 or 3.47% to 3,867.10. The FTSE Bursa KL Composite index in Malaysia closed higher 15.97 or 1.50% to 1,079.63.