Australian Stocks Rise on Lower Deficit

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

Australia reported lower budget deficit for the year ending in June. The deficit announcement lifted banks and retail stocks. Australian dollar closed at 87 U.S. cents.

[R]7:00 AM Sydney, Australia – Australia reported lower budget deficit for the year ending in June. The deficit announcement lifted banks and retail stocks. Australian dollar closed at 87 U.S. cents.[/R]

Australian stocks are likely to focus on the trends in currency and commodities markets as the U.S. dollar hovers near low against Japanese yen and crude oil and gold edge lower.

Australian stocks edged higher in Tuesday’s trading following in the footsteps of the European and U.S. markets.

The ASX 200 index increased 75.70 or 1.62% to 4,753.10. Of the stocks in the index 149 increased, 37 declined and 14 were unchanged. Banks and transportation stocks increased.

Banks gained after Australia reported lower than expected budget deficit. Treasurer Wayne Swan said that the budget deficit for the year ending in June was A$27.1 billion compared to A$32.1 billion a year ago.

ASX Movers

PanAust Limited led decliners in the S&P ASX 200 index with a loss of 6.0% followed by losses in Nufarm Limited Ltd of 4.2%, in Energy World Corporation Limited of 3.2%, in Sundance Resources Limited 3.2% and in APN News & Media Ltd of 2.7%.

Boart Longyear Limited led gainers in the S&P ASX 200 index with a rise of 8.4% followed by gains in Karoon Gas Australia Ltd 7.2%, in Bank of Queensland Limited of 7.1% and in Astro Japan Property Trust of 6.9%.

Other Movers

BHP Billiton plc, the diversified natural resources company advanced 2.4% to A$37.99 and Rio Tinto increased 1.7% to A$59.67.

Boart Longyear Limited rose 8.4% to A$0.32 an integrated provider of drilling services said that it has set up a stock repurchase plan and Macquarie Group Ltd raised its rating on the company to “outperform.”

Commonwealth Bank of Australia added 2.0% to A$52.10 ANZ increased 1.6% to A$24.73 and National Australia Bank gained 2% A$31.22. Westpac Banking Corporation increased 1.2% to A$26.43.

Energy World Corporation Limited an exploration company fell 3.2% to A$0.45.

Karoon Gas Australia Ltd increased 7.2% to A$7.83, Santos increased 1.9% to A$15.50.

Nufarm Limited the range of agricultural chemicals declined 4.2% to A$11.45 after surging on the expectations of a takeover offer from Sinochem yesterday.

PanAust Limited decreased 6.0% to A$0.46 and the mining company announced that at its Phu Kham copper-gold open pit it has intersected broad zones of copper-gold mineralization.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 90.68 or 0.91% to 10,100.20, Hang Seng index in Hong Kong increased 424.76 or 2.06% to 21,013.17 and CSI 300 index in China lower 0.36 or 0.01% to 2,972.29. ASX 200 index in Australia increased 75.70 or 1.62% to 4,753.10. The FTSE Bursa KL Composite index in Malaysia was higher 2.26 or 0.19% to 1208.21.

The Kospi Index in South Korea increased 14.50 or 0.87% to close at 1,690.05. SET index in Thailand closed higher 6.41 or 0.90% to 715.29. JSE Index in Indonesia increased 46.00 or 1.92% to 2,443.83. The Sensex index in India increased 159.91 or 0.96% to 16,852.91.