Telstra to Sell Soufun; Gloucester Surges 27%

123jump.com Staff
23 Dec, 2009
New York City

Australian stocks edged higher after commodities rebounded after better than expected economic data in the U.S. Telstra is looking to sell its stake in China based real estate Web site Soufun.com. Macarthur Coal Limited bids for Gloucester Coal.

[R]3:00 AM New York, 7:00 PM Sydney – Australian stocks edged higher after commodities rebounded after better than expected economic data in the U.S. Telstra is looking to sell its stake in China based real estate Web site Soufun.com. The explosives maker Incitec guides positive outlook. New Zealand Q3 GDP rises 0.2%.[/R]

Australian stocks rose 0.8% supported by strong global cues as U.S. existing home sales rose 7.4% to 6.54 million in November.

In Sydney trading the ASX 200 Index jumped 0.8% or 35.1 to 4,739.30 and the Australian dollar rose 0.01% to 87.57 U.S. cents.

Of the ASX 200 index stocks, 123 advanced, 59 dropped, and 18 were unchanged. Macquarie Countrywide led gainers in the index shares with a rise of 4.9% followed by Duet Group jumping 3.6%.

Incitec Business Performing As Expected

Incitec Pivot chief executive officer James Fazzino reported today in his annual general meeting address to shareholders that judging from the first quarter performance, the “businesses are performing as expected.”

The company is expected to announce before March about the potential development of the Ammonium Nitrate plant at Moranbah in Central Queensland.

Incitec realised a loss of A$179.9 million and the underlying net profit after tax, excluding one-time material items was A$348 million.

“Trading conditions in 209 were the toughest I’ve seen in my 20 years in the chemical industry, with unprecedented reduction in global fertiliser demand and the consequent volatility in global fertiliser prices, plus the recession in the U.S. impacting on volumes in our North American explosives business,” said Fazzino.

New Zealand Q3 GDP Rises 0.2%

Statistics New Zealand reported today the country’s gross domestic product rose 0.2% in the three months to September from the previous three months.

The increase follows five straight quarters of contraction.

New Zealand National Accounts manager Rachael Milicich said the production side of the economy, mining and business services showed the largest increase. In the period, real estate and business services gained 2.2%.

Volume of spending by New Zealand households increased 0.8% in the three months to September, as spending on durable goods edged up 2% and spending on services jumped.

Spending on non-durables however dropped 0.8%.

Investments in fixed assets decreased 1.8% weighed by plant, machinery and equipment falling 8%; other construction, including roads and bridges, 9.3% and residential building 5%.

Virgin Blue Domestic Passengers Fall 3.1%

Virgin Blue reported today its domestic passenger numbers plummeted 3.1% in November, while the 7% cut in capacity increased the seats sold by 3.5% to 84.6%.

International passengers gained 30.9% from the same period a year ago and load factors advanced 2.2% to 71.7%.

Overall, revenue load factor edged up 0.9 points to 79.9%.

ASX Movers

Macquarie CountryWide Trust led the decliners in the S&P ASX 200 index with a loss of 4.8% followed by losses in DUET Group of 3.5%, in Macquarie Airports of 3.0%, in GWA International Limited 2.7% and in Hastie Group Limited 2.6%.

Karoon Gas Australia Ltd led gainers in the S&P ASX 200 index with a rise of 11.2% followed by gains in GrainCorp Limited 7.6%, in Macarthur Coal Limited of 5.5% and in Eastern Star Gas Limited of 5.0%.

Other Movers

Centennial Coal Company Limited increased 3.4% to A$3.87.

Gloucester Coal Ltd surged 27.7% to A$8.37 after the coking and thermal coal miner said Macarthur Coal Limited intends to acquire the company valuing each share at A$8.16 per share.

GrainCorp Limited jumped 7.6% to A$5.79 after the grain handler announced the immediate appointment of Donald McGauchie to its board. McGauchie is currently a director for James Hardy NV and Nufarm Ltd and a member of the Reserve Bank Board.

James Hardie Industries N.V. gained 0.9% to A$8.30.

Macarthur Coal Limited added 5.5% to A$10.25 after the exporter of pulverized coal used by steelmakers said it has agreed to acquire all of CITIC Resources'' direct interests in certain operating assets, as well as terminate its marketing rights for coal generated from those assets and sold to China and India. Company also bid for Gloucester Coal.

Telstra Corporation Limited rose 0.6% to A$3.33 after the telecom operator is looking to sell its 51% stake sale in Chinese real estate site Soufun, according to a report in the Australian. Telstra acquired the stake for $342 million. The site is currently generating one billion yuan or $150 million in revenues.

Westfield Group the shopping mall owner advanced 2.0% to A$12.25.