Iron Ore Above $90; Australian Stocks Rise

123jump.com Staff
20 Jul, 2009
New York City

Australian stocks edged higher on a rally in copper prices and cash iron ore price above $90 a ton as the mineral shipment to China increase. Energy Resources, the operator of uranium mines increased after it estimated first half earnings to rise three-fold.

[R]7:00 PM Sydney – Australian stocks edged higher on a rally in copper prices and cash iron ore price above $90 a ton as the mineral shipment to China increase. Energy Resources, the operator of uranium mines increased after it estimated first half earnings to rise three-fold.[/R]

The gains in commodities prices and increase in spot price of iron ore above US$90 a ton for the first time this year lifted the benchmark index.

Stocks rallied on optimism after the release of better than expected U.S. housing starts and a rise in copper prices in Shanghai. Copper closed at a five-week high.

ASX 200 index in Australia increased 49.50 or 1.24% to 4,050.30 and Australian dollar increased to 80.83 U.S. cents at close. The rise in commodities prices lifted the dollar on the expectations of faster economic growth.

Australian government 10-year bonds declined with a yield of 5.63% on the expectations that the benchmark interest rate of 3% will increase to above 3.75% in the next eighteen months.

Gainers & Losers

Fortescue Metals Group Limited increased 9.2% to $4.28, BHP Billiton added 2.2% to $36 and Rio Tinto gained 1.8% to $53.40.

Wesfarmers Limited increased 1.9% to $24, National Australia Bank Ltd edged up 0.4% to $23.88 and Macquarie Group Limited increased 0.7% to $38.20.

Energy Resources of Australia surged 5.4% to $24.62 after it estimated first half earnings increased three fold to $120 million.

AWB Limited closed at $1.20 and ABB Grain Ltd closed nearly unchanged after the operator of ports in southern Australia said its shipment increased in the year so far to 4.5 million tons reaching the level last seen in the fiscal 2005. The news was reported based on interview of the operations manager with Bloomberg News.

David Jones increased 3.2% to $4.79 and Woolworths Limited added 1.4% to $27.59.

Asian Markets Review

The Hang Seng index in Hong Kong increased 696.71 or 3.70% to 19,502.37 and CSI 300 index in China higher 71.31 or 2.03% to 3,591.12. ASX 200 index in Australia increased 49.50 or 1.24% to 4,050.30. The FTSE Bursa KL Composite index in Malaysia closed higher 18.35 or 1.64% to 1,139.25. The Tokyo market was closed today.

The Kospi Index in South Korea increased 38.41 or 2.67% to close at 1,478.51. SET index in Thailand closed higher 17.56 or 2.95% to 613.67. The Sensex index in India increased 446.09 or 3.03% to 15,191.01. The Indonesian markets were closed today.