Australian Stocks Rise on Unemployment Data

Mayank Mehta
10 Sep, 2009
New York City

Australian employers cut staff in August according to the latest data from the statistics bureau. Retailers gained in Sydney trading after the unemployment rate was steady at 5.8%. Myers is expected to announce A$3 billion listing plan.

[R]10:30 PM Sydney, Australia – Australian employers cut staff in August according to the latest data from the statistics bureau. Retailers gained in Sydney trading after the unemployment rate was steady at 5.8%. Myers is expected to announce A$3 billion listing plan.[/R]

Australian stocks jumped after the release of unemployment data. The number of employed people decreased by 27,100 from July after the data was revised to an increase of 33,700 in the month.

Prime Minister Kevin Rudd told Australian Parliament that Chevron Australia has signed three binding agreements to sell liquefied natural gas to Japan and Korea in a 20-year deal that may generate A$70 billion.

The Gorgon project off the coast of Western Australia will supply 1.375 million tons of gas to Osaka Gas and 1.1 million to Tokyo Gas. Additional 0.5 million tons of natural gas will be exported for 20 years to GS Caltex based in South Korea.

Unemployment Data Lift Retailers

ASX 200 index in Australia increased 48.60 or 1.07% to 4,570.80. Of the stocks in the index, 152 increased, 36 declined and 12 were unchanged.

The Australian dollar edged below 86 U.S. cents after the release of the unemployment data. Australian unemployment in August was unchanged at 5.8% from the previous month. The steady unemployment data supported a rise in retail stocks.

Retailer Myer controlled by private equity fund TPG Capital Group is planning to unveil $3 billion listing plan tomorrow according to a news report in the Australian.

ASX Movers

Sigma Pharmaceuticals Limited led the decliners in the S&P ASX 200 index with a loss of 8.2% followed by losses in St Barbara Limited of 7.8%, in Elders Limited of 4.0%, in Lihir Gold Limited of 3.2% and in Macquarie Airports of 3.1%.

Babcock & Brown Infrastructure Group led gainers in the S&P ASX 200 index with a rise of 17.3% followed by gains in ING Industrial Fund 14.0%, in Virgin Blue Holdings Limited of 8.4% and in Gindalbie Metals Limited of 7.6%.

Other Movers

Babcock & Brown Infrastructure Group added 17.3% to A$0.05.

Carsales.com Ltd prices 46.4 million shares at A$3.50 each and raised A$164 million. The car marketplace started by auto dealers in Australia in 1997 generated net income of A$37.1 million and revenues of A$115.2 million in the latest year ending in June.

Carsales.com increased 14% to close at A$3.99.

Gindalbie Metals Limited rose 7.6% to A$0.99 after surging in the previous session after the company received environmental approval from the Western Australia state and is expected to commence its iron mining project in a month.

Harvey Norman increased 15 cents to A$4.06 and David Jones added 20 cents to A$5.20.

Spot gold prices in Sydney decreased $5.80 to $995.40.

Lihir Gold Limited dropped 3.2% to A$2.99 after investors took profit in gold mining companies.

Paladin Energy Ltd decreased 3.0% to A$4.75 after the uranium producer said that it has agreed to undertake an institutional private placement of 93.45 million ordinary shares to raise approximately A$419 million.

St Barbara Limited, a gold miner fell 7.8% to A$0.29.

Sigma Pharmaceuticals Limited declined 8.2% to A$1.07 said that it has completed the institutional component of its $297 million fund raising.

Virgin Blue Holdings Limited, the discount airline increased 8.4% to A$0.38.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 201.53 or 1.95% to 10,513.67, Hang Seng index in Hong Kong increased 218.52 or 1.05% to 21,069.56 and CSI 300 index in China lower 32.00 or 1.00% to 3,162.91. ASX 200 index in Australia increased 48.60 or 1.07% to 4,570.80. The FTSE Bursa KL Composite index in Malaysia closed higher 4.82 or 0.40% to 1,201.28.

The Kospi Index in South Korea increased 36.91 or 2.30% to close at 1,644.68. SET index in Thailand closed higher 7.50 or 1.08% to 703.09 and JSE Index in Indonesia increased 28.52 or 1.20% to 2,411.86. The Sensex index in India increased 33.31 or 0.21% to 16,216.86.