Aussie Dollar 1-year High; Sigma Pharma Halted

123jump.com Staff
07 Sep, 2009
New York City

Australian dollar reached a high last seen in eleven months of trading as job advertising index showed a rebound and construction activity remained subdued. Sigma Pharmaceuticals was halted after the company is in a deal to buy assets of Bristol-Myers Squibb.

[R]10:35PM Sydney, Australia – Australian dollar reached a high last seen in eleven months of trading as job advertising index showed a rebound and construction activity remained subdued. Sigma Pharmaceuticals was halted after the company is in a deal to buy assets of Bristol-Myers Squibb.[/R]

Australian job placement ads increased the most in sixteen months but construction activity remained subdued. The benchmark indexes increased as Australian dollar surged and metal prices hovered near recent highs.

Commodity stocks were mixed. Gold prices added 0.1% to $996 per ounce, while crude oil prices edged up 0.1% to $68 per barrel. Sugar fell after late monsoon rain in India lowered rain deficit to 21% across the nation from drought like conditions only two weeks ago.

In Sydney trading ASX 200 Index edged up 0.4% or 18.9 to 4,454.40.

Of the ASX 200 index stocks, 122 rose, 65 fell, and 13 were unchanged. Lynas Corp. led gainers in the index shares with a rise of 11.8% followed by gains in MacMahon of 8.9%.
In trading turnover, 2.9 billion shares changed hands for A$5.3 billion with 606 stocks closing higher, 501 declining and 336 unchanged.

Australia’s Jobs Ads Rise in August

Australia & New Zealand Job Advertisements series reported today the total number of jobs advertised in major metropolitan newspapers and on the Internet rose 4.1% to a weekly average of 130,326 in August, increasing for the time in sixteen months.

However, the placements are 48.1% lower than the same period a year ago. The number of jobs dropped 1.7% in July.

Job adverts in major metropolitan newspapers advanced 5.5% to an average of 8,613 in August after falling 0.4% in July. Newspapers advertisements are now 43.1% from a year earlier.

According to ANZ Bank, newspaper jobs rose in New South Wales 24.1%, Western Australia 10.2%, South Australia 9.3%, Northern Territory 9.2%, the ACT 7.8%, Tasmania 4.3% and Queensland 1.2%.

Victoria was the only state to drop, declining 15.2%.

Internet job adverts also advanced 4% to an average 121,713 per week, shedding 48.4% from the comparable year-earlier period.

ANZ Bank acting chief economist Warren Hogan said, “These figures provide the best evidence we have received to date that the labour market are about to enter into a recovery phase of this downturn.”

Construction Activity Falls

The Australia Industry Group- Housing Industry Association Performance Construction- measuring construction activity rose 2.9 points to 42.4 in August.

A reading above 50 shows expansion, while a reading below 50 shows contraction. House building increased 0.6 points to 52.5, while engineering construction fell 3.2% to 31.8. Apartment building eased to 44.4, falling for the 19 months in a row.

The report notes that commercial building declined to 39.6.

“More positive developments were the moderation in the pace of the industry''s contraction, and the continued growth in house-building activity, resulting in an easing in the pace of decline from the extreme lows of the start of the year,” said Tony Pensabene, Australian Industry Group’s associate director for economics and research.

Aussie Rises 0.1%

The Australian dollar gained 0.1% to 84.14 against the U.S. dollar and traded as high as 85.39 U.S. cents as market makers speculated a rise in Australian rates. Higher yielding currencies have been moving higher as investors increase their appetite for risk in the currency markets.

ASX Movers

Elders Limited led the decliners in the S&P ASX 200 index with a loss of 37.1% followed by losses in Babcock & Brown Infrastructure Group of 26.2%, in Sundance Resources Limited of 5.4%, in Macarthur Coal Limited of 4.5% and in Nexus Energy Limited of 3.9%.

Lynas Corporation Limited led gainers in the S&P ASX 200 index with a rise of 11.7% followed by gains in Macmahon Holdings Limited 8.8%, in Macquarie CountryWide Trust of 8.6% and in St Barbara Limited of 7.4%.

Other Movers

BHP Billiton Limited added 0.4% to A$36.78. Mergers in mining companies are on the declined but activity in the sector is expected rebound as precious metal prices rise. Separately, BHP and Rio Tinto are considering to merge their Canadian diamond mining operation according to the Australian.

Challenger Financial Services Group Limited decreased 3.0% to A$3.16 after James Packer sold his stake in the company to raise A$400 million.

Elders Limited plunged 37.1% to A$0.245 after the rural and regional company reported a full year net loss.

Energy World Corporation Limited the developer of gas and electricity projects declined 0.9% to A$0.500. Global Mining Investments Limited added 1.4% to A$1.07.

Rio Tinto Limited the mining company increased 2.3% to A$56.54.

Sigma Pharmaceuticals Limited closed unchanged at A$1.22 and halted after the maker of generic drugs is in discussion to acquires brand portfolio and manufacturing facility from Bristol-Myers Squibb. The company is also planning to raise $297 million to pay for the acquisition.

Equinox Mining climbed 6.7% and Minara Resources advanced 4.5% but Macarthur Coal shed 4.5% and Centennial Coal declined 3.4%.