Australian Index Down 2.2%; Myer Raise $1.9 B

Mayank Mehta
02 Nov, 2009
New York City

Stocks in Australia declined tracking the losses in New York and Europe. The department store chain Myer Holdings Ltd initial public offering closed 8.5% lower on the first day of its trading. NAB agreed to acquire 80% stake in the private wealth management unit of Goldman Sachs JBWere.

[R]10:00 PM Sydney, Australia – Stocks in Australia declined tracking the losses in New York and Europe. The department store chain Myer Holdings Ltd initial public offering closed 8.5% lower on the first day of its trading. NAB agreed to acquire 80% stake in the private wealth management unit of Goldman Sachs JBWere.[/R]

Sundance Resources Limited led gainers in the S&P ASX 200 index with a rise of 6.4%. Asbestos fund may fail to meet obligations. Energy World Corp Ltd. appoints auditor.[/R]

Australian stocks declined sharply tracking losses in New York and in Asia. Global worries overshadowed local news.

The ASX 200 index in Australia decreased 102.80 or 2.21% to 4,540.40 and of the stocks in S&P ASX 200 index, 15 increased, 180 declined and 5 were unchanged.

The Australian dollar increased 1.2% to 91.03 U.S. cents.

The Australian department store chain Myer Holdings Ltd completed its public offering that raised $1.9 billion. The stock closed 8.5% lower to A$3.75 from its listing price at A$4.10 a share.

Myer family kept its 1.5% stake in the retailer and private equity groups TPG and Blum Capital sold their combined stake of 81% in the company in the offering.

ASX Movers

Energy World Corporation Limited led the decliners in the S&P ASX 200 index with a loss of 8.1% followed by losses in Macquarie Infrastructure Group of 7.2%, in Perpetual Limited of 6.7%, in Australand Property Group 6.5% and in Pacific Brands Limited 6.4%.

Sundance Resources Limited led gainers in the S&P ASX 200 index with a rise of 6.4% followed by gains in Aquila Resources Limited 4.4%, in Sims Metal Management Limited of 3.0% and in Commonwealth Property Office Fund of 2.8%.

Other Movers

Aquila Resources Limited rose 4.4% to A$7.50 after the exploration for coal, iron ore and manganese resources said China''s Baosteel has won approval to take a A$285 million stake in the company.

David Jones Limited the department store declined 2.0% to A$5.25 after Myer IPO closed below its offer price.

Energy World Corporation Limited fell 8.1% to A$0.45 and the exploration company said that it has appointed Ernst & Young as auditor of the company.

James Hardie Industries N.V decreased 2.2% to A$7.05 after the seller of home siding in the U.S said asbestos compensation fund is reportedly running out of funds. As reported by The Age, the company may need to replenish the fund.

Macquarie Infrastructure Group dropped 7.2% to A$1.34 after the toll roads operator said it plans to split its portfolio of roads into two separately listed entities.

National Bank of Australia decreased 3.2% to A$28.90 and it agreed to acquired 80.1% of Goldman Sachs JBWere wealth management business in Australia and New Zealand.

Perpetual Limited the wealth management and corporate trust services fell 6.7% to A$35.10.

Rio Tinto Limited dropped 1.5% to A$62.79 after the iron ore exporter and it .

Sundance Resources Limited the exploration of iron ore added 6.4% to A$0.16.

Westpac decreased 2.9% to A$25.59 and ANZ dropped 2% to A$22.59.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 231.79 or 2.31% to 9,802.95, Hang Seng index in Hong Kong decreased 132.68 or 0.61% to 21,620.19 and CSI 300 index in China higher 112.43 or 3.43% to 3,392.80. ASX 200 index in Australia decreased 102.80 or 2.21% to 4,540.40. The FTSE Bursa KL Composite index in Malaysia closed lower 1.47 or 0.12% to 1,241.76.

The Kospi Index in South Korea decreased 21.60 or 1.37% to close at 1,559.09. SET index in Thailand closed lower 8.02 or 1.17% to 677.22 and JSE Index in Indonesia increased 3.94 or 0.17% to 2,371.64. The Indian markets were closed today.