Australian Stocks, Dollar Trade Higher

Mayank Mehta
02 Dec, 2009
New York City

Australian stocks, dollar and commodities gained after Dubai fallout worries receded. Record in gold and rising copper and base metal prices drove Australian dollar near 93 cents. Nufarm Ltd plans to look for alternative deal if Sinochem fails to follow through on its purchase after Dec 23.

[R]8:00 AM Sydney, Australia – Australian stocks, dollar and commodities gained after Dubai fallout worries receded. Record in gold and rising copper and base metal prices drove Australian dollar near 93 cents. Nufarm Ltd plans to look for alternative deal if Sinochem fails to follow through on its purchase after Dec 23.[/R]

Stocks in Australia scaled higher after Dubai default worries receded and the prospect of wider contagion to emerging markets ebbed. Copper, gold and other precious metals increased after manufacturing expanded in China and the U.S.

Gold surged to a new high and the Australian dollar increased to 92.70 U.S. cents and 80.95 yen.

ASX 200 index in Australia increased 43.40 or 0.92% to 4,762.40 and of the stocks in S&P ASX 200 index, 134 increased, 47 declined and 19 were unchanged.

ASX Movers

Nufarm Limited led the decliners in the S&P ASX 200 index with a loss of 6.4% followed by losses in iSOFT Group Limited of 5.3%, in Abacus Property Group of 3.4%, in Goodman Group 3.3% and in Macquarie Office Trust 3.3%.

Murchison Metals Limited led gainers in the S&P ASX 200 index with a rise of 9.8% followed by gains in St Barbara Limited 8.9%, in Avoca Resources Limited of 8.3% and in Equinox Minerals Limited of 7.3%.

Other Movers

St Barbara Limited the mineral explorer rose 8.9% to A$0.36.

BHP Billiton plc gained 1.4% to A$41.92 said Western Australian state government authority said Wednesday it has granted seven Browse Basin retention lease renewals (WA-28-R to WA-32-R) in the Commonwealth Adjacent Area.

BlueScope Steel Limited advanced 2.8% to A$2.90 after the steelmaker said it would complete construction of a second metallic coating line plant at its Cilegon, Indonesia plant.

iSOFT Group Limited, the health information technology company dropped 5.3% to A$0.71.

Lihir Gold Limited the gold miner climbed 4.1% to A$3.73 and Murchison Metals Limited surged 9.8% to A$1.89.

Newcrest Mining Limited, the explorer added 4.9% to A$39.26.

Nufarm Limited fell 6.4% to A$10.51 after the company said that it will not accept a lower offer from Sinochem and will look for alternative buyer after the extended deadline of December 23. Both companies extended the deadline from December 3 and Nufarm is still looking for a buyout at A$13 a share.

OneSteel Limited the steel producer rose 1.9% to A$3.12.

Rio Tinto Limited increased 3.0% to A$73.54 after copper prices increased on the manufacturing expanded in China, UK and the U.S.