Australia Lifts Growth Outlook to 1.75%

123jump.com Staff
06 Nov, 2009
New York City

The Reserve Bank of Australia revised its annual outlook for the current year and 2010. The central bank lifted its 2009 economic growth to 1.75% from 0.5% and 2010 estimate to 3.5% from 2.25%. Banks led the gainers with the ASX index up 1.9%.

[R]3:00AM New York, 7:00PM Sydney – The Reserve Bank of Australia revised its annual outlook for the current year and 2010. The central bank lifted its 2009 economic growth to 1.75% from 0.5% and 2010 estimate to 3.5% from 2.25%. Banks led the gainers with the ASX index up 1.9%.[/R]

Australian stocks rose 1.9% spurred by an upward revision of the country’s annual economic growth by the Reserve Bank of Australia. The RBA lifted its current year economic growth to 1.75% from 0.5% and in 2010 to 3.5% from 2.25% as estimated in August.

In Sydney trading ASX 200 Index rose 1.9% or 86 to 4,594.00.

Of the ASX 200 Index shares, 165 gained, 27 dropped, and 8 were unchanged. Murchison Metals led advancers in the index shares with a rise of 14.1% after gold prices edged up 0.2% to 1,089 per ounce.

The Aussie dollar gained 0.3% to 91.34 U.S. cents.

RBA Lifts Australia Q4 Growth

Reserve Bank of Australia reported today revised the country’s economic growth projection to 1.75% from its earlier estimate three months ago of 0.5%. The RBA also lifted its 2010 growth estimate to 3.5% from 2.25%.

Underlying inflation is estimated to drop to 2.25% by late 2010, before increasing to 2.5% over 2011. Inflation is estimated to be near 3.25% in 2009.

The RBA noted that the outlook for the next few years has improved and there is need to “lessen the degree of monetary stimulus that was out in place when the outlook appeared much weaker.”

“The cash rate remains at a low level, and a further gradual lessening of monetary stimulus is likely to be required over time if the economy evolves broadly as expected. The Board will continue to monitor developments closely and set monetary policy so as to promote sustainable growth in the Australian economy and keep inflation consistent with the medium-term target,” said RBA.

Australia Awards A$235 million for Renewable Energy

Australia’s Energy and Resources Minister Martin Ferguson said today the government has awarded A$235 million to four companies to promote renewable energy technologies.

The companies-Petratherm Ltd., Geodynamics Ltd., Victorian Wave Partners Pty Ltd. and Hydro Tasmania- will drive the country’s bid to promote clean energy by 2020.

Petratherm will receive A$63 million, Geodynamics A$90 million, Victorian Wave A$66 million and Hydro Tasmania A$15 million.

Investments are expected to produce 80 megawatts of new power generation.

Gainers & Losers

Murchison Metals led advancers in the ASX 200 Index shares with a rise of 14.1% followed by increases in Linc Energy of 12.5%, in Panaust Ltd of 7.8%, in WorleyParsons of 7.6%, and Paperlinx Ltd of 6.4%.

Graincorp. led decliners in the ASX 200 Index shares with a decline of 3.1% followed by losses of Macquarie Countrywide of 2.5%, in Goodman Fielder of 2.2%, in Eircom Holdings of 1.9%, and Emeco Holdings of 1.8%.

Other Movers

ASX Limited increased 1.9% to A$33.45 after the stock exchange was upgraded to “overweight” from “neutral” at JPMorgan Chase & Co.

BHP Billiton plc rose 2.6% to A$37.40 after the mining company said repair work to Australia''s Olympic Dam uranium and copper mine is on track for a resumption of full production between January and March next year.

Carnegie Wave Energy Limited the wave technology company plunged 20% to A$0.16.

Geodynamics Limited surged 9.6% to A$0.91 after the renewable energy producer said Petratherm is the biggest of four winners to receive a slice of A$235 million from the Federal Renewable Energy Demonstration Program.

Incitec Pivot Limited climbed 4.3% to A$2.62 after the fertilizer maker was upgraded to “overweight” from “neutral” at JPMorgan Chase & Co.

Linc Energy Ltd surged 12.4% to A$1.58 after the results of drilling in South Australia suggested a significant mineralisation between 1 million and 1.3 billion metric tons.

Leighton Holdings Limited rose 5.8% to A$35.80 after the construction company was upgraded to “outperform” from “neutral” by Macquarie Group Ltd.

National Australia Bank Limited added 2.0% to A$28.75.

ResMed Inc rose 2.7% to A$5.55 after the maker of equipment for breathing-related sleep disorders said first quarter net profit rose 50% to $42.1 million.

Westpac Banking Corporation advanced 2.5% to A$26.55.