Australian Dollar, Stocks to Gain; UMC Bid

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

Australian stocks are expected to open firm after a surge in crude oil prices in New York. Australian dollar reached another high as investors see higher interest rates on the back of global economic recovery. BHP Billiton and Rio Tinto abandon their marketing venture for Pilbara region iron ore.

[R]7:00 AM Sydney, Australia – Australian stocks are expected to open firm after a surge in crude oil prices in New York. Australian dollar reached another high as investors see higher interest rates on the back of global economic recovery. BHP Billiton and Rio Tinto abandon their marketing venture for Pilbara region iron ore.[/R]

Investors around the world are focused on earnings as the companies report generally better than expected earnings. Goldman Sachs earnings surged three fold and Citigroup swung to a net profit.

However, Nokia reported a loss and Accor and Carrefour reported weaker than expected sales. Banks and financial services and industrial companies in India report better than expected earnings. WH Smith and SAB Miller reported earnings that met analysts’ expectations in London.

Xstrata dropped its hostile offer for Anglo American Plc ahead of regulatory deadline set by U.K. Financial Services Agency.

In Sydney trading, the ASX 200 Index increased 28.80 or 0.60% to 4,859.90 and among the stocks in the index 111 increased, 69 declined and 20 closed unchanged.

Australian dollar edged higher to close at 92.03 U.S. cents. The chorus of voices suggesting parity with the U.S. dollar by the middle of next year reached a new consensus.

Australian Movers

BHP Billiton plc the mining company added 1.3% to A$38.90 and Rio Tinto Limited advanced 2.4% to A$64.79 Two companies abandoned their joint marketing venture for the iron ore production under the regulatory pressure. Two companies will still jointly develop and produce iron ore from Pilbara region mines but will market separately their share. The joint venture still needs approval from the European Commission.

JB Hi-Fi Limited increased 5.5% to A$20.50 after the discount electronics retailer was upgraded to “neutral” from “underperform” at Credit Suisse Group AG.

OZ Minerals Limited, the copper and gold producer rose 0.7% to A$1.32.

Iluka Resources Limited closed unchanged at A$3.86 after the zircon producer was downgraded to “sell” from “hold” at Royal Bank of Scotland Group Plc.

Santos Limited the oil and gas exploration climbed 1.1% to A$15.54.

National Australia Bank Limited fell 0.5% to A$31.75 said Thursday it will abolish by late January a number of fees charged to customer accounts that will cost the bank around A$110 million in revenue annually.

Newcrest Mining Limited the gold producer fell 1.2% to A$36.62.

Nexus Energy Limited the oil company surged 9.0% to A$0.36.

United Minerals confirmed that it has received friendly takeover offer of $204 million from BHP Billiton or A$1.30 a share. The company had recently agreed to sell 11.4% stake to China Railway Materials Commercial Corporation at A$1.35 a share or $27.2 million.

Woodside Petroleum Ltd the oil and gas producer rose 1.0% to A$53.20.

ASX Movers

Elders Limited led the decliners in the S&P ASX 200 index with a loss of 13.0% followed by losses in Energy World Corporation Limited of 4.5%, in St Barbara Limited of 4.3%, in Caltex Australia Limited 3.9% and in Spotless Group Limited 3.5%.

Nexus Energy Limited led gainers in the S&P ASX 200 index with a rise of 9.0% followed by gains in OM Holdings Limited 9.0%, in Molopo Australia Limited of 8.3% and in JB Hi-Fi Limited of 5.5%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 178.44 or 1.77% to 10,238.65, Hang Seng index in Hong Kong increased 112.60 or 0.51% to 21,999.08, and CSI 300 index in China higher 12.24 or 0.38% to 3,239.64. ASX 200 index in Australia increased 28.80 or 0.60% to 4,859.90. The FTSE Bursa KL Composite index in Malaysia was higher 0.02 or 0.00% to 1,246.86.

The Kospi Index in South Korea increased 9.90 or 0.60% to close at 1,658.99 SET Index in Thailand closed lower 38.75 or 5.30% to 692.72. JSE Index in Indonesia increased 3.66 or 0.15% to 2,515.38. The Sensex index in India decreased 35.91 or 0.21% to 17,195.20.