Australian Dollar, Retail Stocks Rise

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

Australian retail stocks edged higher after the latest minutes of meetings from the RBA suggested that rates may not be raised at the next meeting. Harvey Norman, David Jones and JB Hi-Fi Ltd increased.

[R]8:00 AM Sydney, Australia – Australian retail stocks edged higher after the latest minutes of meetings from the RBA suggested that rates may not be raised at the next meeting. Harvey Norman, David Jones and JB Hi-Fi Ltd increased.[/R]

Australian retail stocks advanced on the speculation that the central bank may not raise interest rate at the upcoming meeting. The latest minutes of meeting released by the Reserve Bank of Australia noted the risks of curtailing early economic recovery.

ASX 200 index in Australia increased 9.20 or 0.20% to 4,540.30 and of the stocks in the index 110 increased, 70 declined and 20 were unchanged.

Australian dollar edged higher and traded above 86.30 U.S. cents in the early morning trading after the comments from the Fed Chairman Bernanke. Chairman suggested that the U.S. economy is probably out of the recession by now but the recovery in the job market may lag for a while.

ASX Movers

Lynas Corporation Limited led the decliners in the S&P ASX 200 index with a loss of 5.0% followed by losses in FKP Property Group of 4.4%, in Telstra Corporation Limited of 4.3%, in Elders Limited of 4.2% and in Mincor Resources NL of 3.3%.

Macmahon Holdings Limited led gainers in the S&P ASX 200 index with a rise of 7.8% followed by gains in Harvey Norman Holdings Limited 6.3%, in Spotless Group Limited of 5.0% and in Transfield Services Limited of 4.9%.

Other Movers

BHP Billiton Limited added 1.0% to A$38.25 and separately the company said in an industry conference in Frankfurt, Germany that it will go ahead with its alumina refinery plant in Guinea. The company is in partnership with Dubai Aluminum and Mubadala Development Co of UAE.

David Jones Limited the department- store chain rose 2.2% to A$5.50.

Flight Centre Limited the travel agency rose 3.7% to A$14.19.

FKP Property Group the engaged in property development and investment activities dropped 4.4% to A$0.75 after UBS lowered the investment rating on the company.

Harvey Norman Holdings Limited, the electronics retailer advanced 6.3% to A$4.35 and JB Hi-Fi Limited the discount electronics retailer added 2.6% to A$18.81.

Lynas Corporation Limited the mineral exploration company fell 5.0% to A$0.66.

Macmahon Holdings Limited the civil construction contractor increased 7.8% to A$0.68.

Rio Tinto Limited rose 1.6% to A$58.98 after the company agreed to sell of 56% of cable division of Rio Tinto Alcan to Platinum Equity. Rio Tinto Alcan will remain a key supplier of aluminum rod and molten aluminum to cable plants in North America.

Telstra Corporation Limited decreased 4.3% to A$3.11 after the Communications Minister suggested that the telecom company may need to be divided into separate businesses to promote competition to improve services and lower prices.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 15.56 or 0.15% to 10,217.62, Hang Seng index in Hong Kong decreased 68.83 or 0.31% to 20,866.37 and CSI 300 index in China higher 9.25 or 0.28% to 3,302.64. ASX 200 index in Australia increased 9.20 or 0.20% to 4,540.30. The FTSE Bursa KL Composite index in Malaysia closed higher 4.11 or 0.34% to 1,207.47.

The Kospi Index in South Korea increased 18.49 or 1.13% to close at 1,653.40. SET index in Thailand closed higher 8.84 or 1.27% to 703.16 and JSE Index in Indonesia increased 37.41 or 1.57% to 2,420.11. The Sensex index in India increased 240.26 or 1.48% to 16,454.45.