Australian Stocks Up on ADB Estimates

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

New Zealand second quarter GDP expanded after shrinking for six quarters in a row. Australian and New Zealand dollar gained on the GDP report. Retailers, banks and resource stocks increased in Sydney after ADB revised higher developing Asia growth rate.

[R]10:30 PM Sydney, Australia – New Zealand second quarter GDP expanded after shrinking for six quarters in a row. Australian and New Zealand dollar gained on the GDP report. Retailers, banks and resource stocks increased in Sydney after ADB revised higher developing Asia growth rate.[/R]

The latest statistical data from New Zealand may offer another evidence of nascent recovery in the world economies. Seasonally adjusted second quarter GDP ending in June increased at a rate of 0.1% after dropping at 0.8% in the first quarter, technically ending six quarter long recession that started in the last quarter of 2007.

New Zealand joins France, Germany and Singapore to emerge from the last two years of economic turmoil as the leaders of 20 industrialized nations meet in the U.S. for a two-day summit.

New Zealand and Australian currencies surged to 13-month high after the release of GDP data. New Zealand dollar increased to 73.12 U.S. cents but settled at 72.60 cents. Australian dollar advanced to 87.87 U.S. cents and closed at 87.45 cents.

Australian stocks rallied after Asian Development Bank lifted economic growths in the region. The developing Asia excluding Japan is expected to grow at 3.9% in the current fiscal quarter. India, Indonesia and China are estimated to grow at least one percentage point faster than earlier estimated in March.

Rising commodities prices also helped resource sector stocks in Australia.

ASX 200 index in Australia increased 70.40 or 1.51% to 4,734.10 and of the stocks in the index, 156 increased, 32 declined and 12 were unchanged.

ASX Movers

Western Areas NL led the decliners in the S&P ASX 200 index with a loss of 4.9% followed by losses in Karoon Gas Australia Ltd of 4.5%, in iSOFT Group Limited of 3.4%, in Eastern Star Gas Limited of 3.0% and in Tatts Group Limited of 2.3%.

Aristocrat Leisure Limited led gainers in the S&P ASX 200 index with a rise of 8.9% followed by gains in Infigen Energy 7.6%, in Envestra Limited of 6.5% and in Minara Resources Limited of 5.6%.

Other Movers

Aristocrat Leisure Limited rose 8.9% to A$5.22 said it was not aware of any information that would explain the latest surge in its share price.

BHP Billiton plc added 0.9% to A$38.35, Rio Tinto increased 2.3% to A$61.74 and Woodside Petroleum surged 5.1% to A$53.11. Santos Limited climbed 0.4% to A$15.15.

Fairfax Media Limited rose 4.6% to A$1.70 after Ron Walker said that he will not run for reelection without the support of shareholders.

Gold miners increased as the metal futures increased. Newcrest Mining increased 2% to A$34.34, Lihir Gold added 2.7% to A$3.09 and Newmont Mining increased 1.5% to A$5.20.

QBE Insurance Group Ltd rose 1.1% to A$24.60 after the property and casualty insurer said plans a six-year benchmark sterling bond, IFR reported on Tuesday.

Most retailers closed higher. Woolworths increased 1.5% to A$29.26, Wesfarmers added 2% to A$26.77, David Jones edged up 3% to A$5.66. Billabong increased 3% to A$11.15.

Asian Markets Review

Hang Seng index in Hong Kong decreased 105.62 or 0.49% to 21,595.52 and CSI 300 index in China closed lower 70.96 or 2.27% to 3,060.07. ASX 200 index in Australia increased 70.40 or 1.51% to 4,734.10. The FTSE Bursa KL Composite index in Malaysia was lower 2.13 or 0.17% to 1219.07. Markets in Tokyo were closed today.

The Kospi Index in South Korea decreased 7.41 or 0.43% to close at 1,711.47. SET index in Thailand closed higher 6.15 or 0.85% to 730.52. The Sensex index in India decreased 166.93 or 0.99% to 16,719.50. Markets in Indonesia were closed today.