Aussie Dollar Strengthen; Banks Weak

123jump.com Staff
12 Oct, 2009
New York City

Stocks in Australia are expected to trade lower in the early trading. Gold, copper and oil edged higher as expectations for global economic recovery remain high. BHP Billiton offered to explore three offshore oil fields in India. Packer increases his stake in Crown Limited.

[R]7:00 AM Sydney, Australia – Stocks in Australia are expected to trade lower in the early trading. Gold, copper and oil edged higher as expectations for global economic recovery remain high. BHP Billiton bid explore three offshore oil fields by India. Packer increases his stake in Crown Limited.[/R]

Stocks in New York extended gains in Europe. Asian markets closed lower. The dollar hovered near low against the yen and the euro for the year. Gold, silver, copper, oil and natural gas edged higher. Electronics maker Philips N.V. reported earnings that lifted European trading sentiment.

In Monday’s trading ASX 200 index in Australia decreased 13.10 or 0.28% to 4,738.80 and of the stocks in the index 81 increased, 105 declined and 14 were unchanged.

Of the total shares traded, 568 increased, 547 decreased and 347 were unchanged.

BHP Billiton Ltd for three offshore areas that is likely to produce oil and natural gas according to a joint secretary in the oil ministry of India. Of the total 45 companies applied for licenses to explore, seven are international companies.

Indian conducted its eighth round of energy block auction that offered 70 blocks for exploration that attracted 76 bids for 36 blocks.

Aussie dollar closed at 90.70 U.S. cents in Sydney trading.

ASX Movers

Babcock & Brown Infrastructure Group led the decliners in the S&P ASX 200 index with a loss of 13.2% followed by losses in Lynas Corporation Limited of 8.0%, in Virgin Blue Holdings Limited of 7.4%, in IRESS Market Technology Limited 4.6% and in Molopo Australia Limited 4.1%.

Macquarie Media Group led gainers in the S&P ASX 200 index with a rise of 19.1% followed by gains in Energy World Corporation Limited 15.4%, in Crown Limited of 6.1% and in Extract Resources Limited of 5.4%.

Other Movers

In trading a total of 2.5 billion shares changed hands in Sydney for a value of A$3.7 billion.

BHP Billiton Limited closed up 0.11% to A$37.89 after it was awarded three offshore oil fields in India. The Australian reported that the company is expected to offer A$1.40 a share to acquire United Minerals Corp or for A$220 million.

Babcock & Brown Infrastructure Group the specialist infrastructure company fell 13.2% to A$0.04.

Challenger Financial Services Group Limited closed unchanged at A$3.58 and the company is interested in creating platform-based unitised annuity investment option aimed at financial advisers and their clients.

Consolidated Media Holdings Limited rose 0.3% to A$3.06.

Crown Limited added 6.1% to A$9.01 after media and entertainment mogul Packer acquired more shares to increase his holdings to 40%, fueling speculation that the possibilities that the company may be privatized.

Energy World Corporation Limited rose 15.4% to A$0.56 an exploration company said The Havila Kavo administration and the company signed an agreement to build infrastructure projects.

Fortescue Metals surged 3.5% to A$3.90 after it shipped higher than expected iron ores in three months to September.

Lynas Corporation Limited declined 8.0% to A$0.57.

Macquarie Media Group surged 19.1% to A$2.33 after

Mirvac Group decreased 3.9% to A$1.595 after it agreed to acquire group company Mirvac Real Estate Investment Trust in cash and stock for a value of A$338.73.

National Australia Bank Limited decreased 1.8% to A$31.01 after Merrill Lynch lowered its outlook on the bank on high valuation and raised questions about its retail banking strategy.

Seven Network Limited fell 0.8% to A$6.18 and the company said its holding in James Packer's Consolidated Media Holdings Ltd has risen to 20.96% after the Consolidated bought more stocks in the open market and lowered the number of outstanding shares.

Sunland Group Limited the property developer fell 1.1% to A$0.84.

Telstra increased 1.3% to A$3.20.

Asian Markets Review

The Hang Seng index in Hong Kong decreased 200.09 or 0.93% to 21,299.35, and CSI 300 index in China lower 12.08 or 0.38% to 3,151.63. ASX 200 index in Australia decreased 13.10 or 0.28% to 4,738.80. The FTSE Bursa KL Composite index in Malaysia was lower 0.49 or 0.04% to 1,233.33. The Tokyo markets were closed today.

The Kospi Index in South Korea decreased 6.98 or 0.42% to close at 1,639.81 SET Index in Thailand closed higher 4.99 or 0.67% to 751.86. JSE Index in Indonesia decreased 17.71 or 0.72% to 2,456.69. The Sensex index in India increased 384.01 or 2.31% to 17,026.67.