Aussie Dollar, Stock Firms on APEC Comments

Darlington Musarurwa
16 Nov, 2009
New York City

Australian stocks rose 1% spurred by commodity stocks as gold prices soared 0.9% to $1,116 per ounce. Asian markets closed higher after 21-member Asia-Pacific Economic Cooperation group agreed to keep economic stimulus in place until the economy recovers to a sound footing.

[R]3:00 AM New York, 7:00 PM Sydney- Incitec Pivot Ltd. reported A$179.9 million loss. New Zealand producers’ prices fall 1.4% in September quarter.[/R]

Australian stocks rose 1% spurred by commodity stocks as gold prices soared 0.9% to $1,116 per ounce. Asian markets closed higher after 21-member Asia-Pacific Economic Cooperation group agreed to keep economic stimulus in place until the economy recovers to a sound footing.

Banking stocks dropped and crude oil prices fell 0.8% to $76.4 per barrel.

In Sydney trading ASX 200 Index rose 1% or 48.8 to 4,755.20.

Of the ASX 200 index stocks , 154 gained, 32 declined, and 14 were unchanged. Boart Longyear Group led gainers in the index shares with a rise of 9.7% followed by St Barbara Ltd. rising 9.5%.

The Australian dollar advanced and traded near its 15-month high of 93.65 U.S. cents.

Incitec Pivot Reports A$179.9 million Loss

Incitec Pivot Ltd. today announced a loss after tax of A$179.9 million in the full year ended September 30. Net profit after tax excluding one-time charges was A$347.8 million.

According to the report, one-time charges including aggregate were A$527.7 million, including write down of goodwill of A$490 million related to Dyno Nobel.

Explosives contributed 52% of revenues, while 48% was from fertiliser manufacturing.

However for the fertiliser distribution business, sales revenues and volumes dropped 29%.

Dyno Nobel, acquired during the course of the year, contributed earnings before income and taxes of $222 million, despite difficult conditions in North America.

Managing director & chief executive officer James Fazzino said the company has agreed to form a joint venture called Quantum Fertilisers in Hong Kong to “further leverage its fertiliser trading and procurement activities.”

New Zealand Producers’ Prices Fall 1.4%

Statistics bureau in New Zealand reported today the country’s producers’ prices dropped, with output prices sliding 1.4% in the three months ended September.

Input prices fell 1.1%.

The dairy cattle farming index declined 24.3% led by lower milk prices at the farmgate, which make up the majority of the dairy cattle farming index.

In addition, the dairy product manufacturing index plunged 20.9% dragging input prices the most.

In the year to the September 2009 quarter, the PPI outputs index fell 2.1% and the PPI inputs index dropped 5.8%.

Gainers & Losers

Boart Longyear Group led gainers in the ASX 200 index shares with a rise of 9.7% followed by increases in St Barbara Ltd. of 9.5%, in Minara Resources of 7.8%, in Mount Gibson Iron of 7% and Seek Ltd. of 6.9%.

AJ Luca Group led decliners in the ASX 200 index shares with a fall of 5.2% followed by losses in OM Holdings Ltd of 3.9% followed by losses in Paperlinx of 2.7%, in Isoft Group of 2.5%, and in Westpac Banking of 2.1%.

Other financial stocks fell. National Australia Bank declined 1.4% to A$28.50 and Australia & New Zealand Bank fell 1.3% to A$22.18.

Other Movers

AJ Lucas Group Limited fell 5.2% to A$4.72 after the diversified infrastructure, construction secured a A$95 million contract for works at the Gorgon gas project.

Beach Petroleum Limited increased 1.8% to A$0.82 after the oil and gas producer said the NS377-3 field development well has been cased and the 145 metre gross vertical oil column intersected by the well is being perforated for future oil production.

Boart Longyear Limited an integrated provider of drilling services rose 9.6% to A$0.34.

Eden Energy Limited the providing access to range of green energy opportunities closed unchanged at A$0.08.

Incitec Pivot Limited increased 6.4% to A$2.79 after the fertilizer maker said full-year sales rose 17% to A$3.42 billion from A$2.92 billion a year ago. Net loss for the full-year was A$179.9 million or 11.7 cents per diluted share compared to net profit of A$604.6 million or 56.5 cents per share a year ago.

Origin Energy Limited added 2.6% to A$16.65 after the electricity and gas retailer.

OM Holdings Limited an investment company fell 3.9% to A$1.84.

Panax Geothermal Ltd declined 5.5% to A$0.17 after the exploration of geothermal opportunities in Australia said is poised to raise A$8 million worth of funds to assist in advancing drilling of the Salamander-1 well at the Penola Project in South Australia.

Petratherm Limited the engaged in testing hot rocks, specifically granitic and hydrothermal iron oxide systems decreased 1.2% to A$0.40.