Australian Markets Struggle; Transurban Up 19%

Darlington Musarurwa
05 Nov, 2009
New York City

Stocks in Australia fell on the worries that elevated energy prices will affect corporate profits. Transurban Group surged 19% after it rejected Canadian offer that undervalued the company. Australia

[R]3:00 AM New York, 7:00 PM Sydney – Stocks in Australia fell on the worries that elevated energy prices will affect corporate profits. Transurban Group surged 19% after it rejected Canadian offer that undervalued the company. Australia’s trade deficit rises 12% to A$1.8 billion in September. New Zealand unemployment jumps to 6.5% in September quarter.[/R]

Australian stocks fell on mounting worries that rising crude oil prices will affect corporate profits. Crude oil prices gained 1% to $80.4 per barrel.

In Sydney trading ASX 200 Index declined 0.7% or 32.1 to 4,508.00.

Of the ASX 200 index stocks, 60 rose, 122 fell, and 18 were unchanged. Transurban Group led advancers in the index shares with a rise of 19.4% followed by Extract Resources climbing 5.6%.

The Aussie fell 0.5% to 90.52 U.S. cents.

Trade Deficit Rises 12% in September

Australian Bureau of Statistics reported on its Web site today the country’s trade deficit soared 12% to A$1.8 billion in September from A$1.7 billion the previous month in seasonally adjusted term.

Exports in the period advanced 12% to A$20.2 million as gold exports increased 64%; non-rural goods advanced 2%; and coal, coke and briquettes sales increased 9%.

Service exports advanced 3%, but rural goods declined 3%.

The ABS noted that imports edged up 5% to A$22 billion, with imports of intermediate and other merchandise goods increased 10%, fuels and lubricants added 25%, consumption goods 2% and capital goods 2%.

Service imports also gained 1%.

NZ Unemployment Rate Rises to 6.5% in September

Statistics New Zealand reported today that the number of unemployed rose by 12,000 to 150,000 people, while the unemployment rate jumped to 6.5% in the three months to September.

The number of people employed declined by 17,000 during the September quarter. Actual hours worked fell 0.7% in the review period from the previous quarter and dropped 3.1% from the same period a year ago.

“During the past year there have been notable decreases in employment in the manufacturing, retail trade and accommodation, and construction industries, while employment in the health care and social assistance, and public administration and safety industries has increased”, said Peter Gardiner, Manager of Work, Knowledge and Skills at Statistics New Zealand.

Gainers & Losers

Astro Japan Properties and other property stocks rose as rising imports fed to speculation the central bank will hike its interest rates. The stock closed up 3.3%.

Commodity prices fell despite gold prices climbing 0.2% to $1,087 per ounce and crude oil prices increasing 1% to $80.4 per barrel. Linc Energy fell 5.7%, Infigen Energy dropped 5.3% and Energy World Corp. tumbled 3.3%.

ASX Movers

Virgin Blue Holdings Limited led the decliners in the S&P ASX 200 index with a loss of 6.2% followed by losses in PaperlinX Limited of 6.0%, in Transpacific Industries Group Ltd of 5.7%, in Linc Energy Ltd 5.7% and in Infigen Energy 5.3%.

Transurban Group led gainers in the S&P ASX 200 index with a rise of 19.3% followed by gains in Extract Resources Limited 5.6%, in Boart Longyear Limited of 5.5% and in Seven Network Limited of 4.5%.

Other Movers

BHP Billiton plc fell 1.3% to A$36.44.

Boart Longyear Limited added 5.5% to A$0.28 an integrated provider of drilling services was awarded a drilling contract by Brazil Potash Corp. on its extensive property in the State of Amazonas, Brazil.

Extract Resources Limited minerals and uranium explorer rose 5.6% to A$8.06.

Linc Energy Ltd, a coal miner fell 5.7% to A$1.40.

Macquarie Infrastructure Group the developer and operator of toll roads decreased 1.5% to A$1.30.

PaperlinX Limited the distributor of publishing papers fell 6.0% to A$0.47.

Transurban Group surged 19.3% to A$5.24 after the owner of toll roads said it had rejected a A$6.8 billion ($6.1 billion) takeover proposal on Thursday from two Canadian pension schemes and said it undervalued the group.

Transpacific Industries Group Ltd dropped 5.7% to A$1.32 after the waste transport operator reported a loss of A$237.4 million loss in the fiscal year.

Virgin Blue Holdings Limited decreased 6.2% to A$0.45 and the airliner launched a direct service between Wellington and Phuket.