Australian Stocks Indicate Higher Open

123jump.com Staff
24 Aug, 2009
New York City

Australian stocks surged the most in Asian rally on a rise in commodities prices and a gain in crude oil futures. Fairfax Media reported full year loss. Interest rates arbitrageurs pushed Australian dollar higher.

[R]7:00 AM Sydney – Australian stocks surged the most in Asian rally on a rise in commodities prices and a gain in crude oil futures. Fairfax Media reported full year loss. Interest rates arbitrageurs pushed Australian dollar higher.[/R]

Markets in New York rallied in morning but lost the shine in the late hours as commodities prices increased and banks retreated. Crude oil futures edged to a new-high for the year and agriculture commodities closed higher.

In European trading, market indexes in Germany and France reached 11-month high and UK indexes closed up 10-month high.

In yesterday, trading Australian stocks surged on higher oil and commodities prices and better than expected U.S. home sale data. The benchmark index ASX 200 index surged 3.2% to 4,426.10 and the broader All Ordinaries index increased 2.98% to 4,434.20.

Interest rates arbitrageurs pushed Australian dollar higher to 83.55 U.S. cents.

Crude oil futures are likely to rise above $75 a barrel.

Colonial First State Global Asset Management Pty is likely to offer $450 million for a shopping center in Perth according to a report in the Australian Financial Review. The deal if completed will be the largest property transaction in two years.

Gainers & Losers

Precious metals mining companies edged higher after gold and silver closed up on Friday in New York. Copper prices advanced the most in nearly three months.

BHP Billiton increased 4.3% to $38.18 and Rio Tinto increased 4.7% to $58.98.

Lihir Gold increased 2% to $2.49, Newcrest Mining increased 2.6% to $29.34 and Newmont Mining added 3% to $4.92.

Fairfax Media Ltd surged 3.6% to $1.46 after the second largest Australian newspaper reported full-year net loss of $380.1 million and said that advertising decline appears to have stabilized.

Telstra declined 3.2% to $3.36 in addition to the drop on Friday after the Future Fund cut its stake by one third to 10.9%.

ASX 200 Index Movers

Emeco Holdings Ltd led the decliners in the ASX 200 index of 7.6% followed by losses in Iress Market Technology Ltd of 3.9%, in WorleyParsons Ltd of 3.7%, in Sims Metal Management Ltd of 3.5% and in Telstra Corp Ltd of 3.1%.

ING Industrial Fund led gainers in the ASX 200 index with a rise of 14.2% followed by gains in Lynas Corporation Limited of 12.8%, in Australian Worldwide Exploration Ltd of 12.5% and in Murchison Metals Limited of 10.8%.