Australian Index Up 31%; Aussie Rises 28%

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

The Australian benchmark index increased 31% in the year with a gain of 0.8% on the last day of trading. The Australian dollar advanced after the Reserve Bank of Australia said that bank lending increased 0.1% in November. For the year the Australian dollar is up 28% against the dollar.

[R]3:00 AM New York, 7:00 PM Sydney – The Australian benchmark index increased 31% in the year with a gain of 0.8% on the last day of trading. The Australian dollar advanced after the Reserve Bank of Australia said that bank lending increased 0.1% in November. For the year the Aussie is up 28% against the dollar.[/R]

The benchmark index closed up 0.8% on the last day of trading and surged 31% in the year. Rally in resource stocks and commodities sustained the gains in the last session.

In Sydney trading ASX 200 Index edged up 0.8% or 37.3 to 4,870.60. The index decreased 41% in 2008 and gained 31% in the year, its best gain since 1993. The NZX 50 Index of New Zealand increased 19%.

Of the ASX 200 index stocks 130 gained, 54 decreased, and 16 were unchanged. Aquila Resources led gainers in the index shares with a rise of 6% followed by Goodman Group soaring 5.8%.

The Australian dollar rose to 89.68 U.S. cents and increased to 82.86 yen. The Aussie increased 28% against the dollar and 30% against the yen.

World markets rebounded sharply from March with most developed markets surging between 50% and 60%. The benchmark index in Russia led the world market advanced by 126% followed by gains of 83% in Brazil, 81% in India and 80% in China.

Australian Bank Lending Gains 0.1%

Reserve Bank of Australia reported today total credit provided to the private sector by financial intermediaries increased 0.1% in November from a drop of 0.1% in the previous month. Total credit increased 0.8% from a year ago to November.

Housing credit increase 0.7% in November from a gain of 0.8% realised in October on growth in lending to both owner-occupiers and investors.

The report notes that though personal credit advanced 0.3% in the review period, business credit declined 0.1% following a decline of 0.5% in October.

Money supply growth, M3, decreased by 0.1% and broad money was flat in the period. However, over the year, broad money grew by 4.9%.

Sumitomo Chemical, Nufarm Execs

The Australian reported today that senior management from Japanese firm Sumitomo Chemical Co. is expected to meet executives at Nufarm as early as next week to discuss details of strategic plans.

The meeting is expected to focus on products distribution and research and development strategies and resources.

Sumitomo agreed to acquire a 20% stake in Nufarm trumping the bid from China based Sinochem.

ASX Movers

Hastings Diversified Utilities Fund led the decliners in the S&P ASX 200 index with a loss of 2.6% followed by losses in Independence Group NL of 2.6%, in Macquarie Media Group of 2.5%, in Abacus Property Group 2.2% and in Extract Resources Limited 2.0%.

Aquila Resources Limited led gainers in the S&P ASX 200 index with a rise of 6.0% followed by gains in Goodman Group 5.8%, in Whitehaven Coal Limited of 4.8% and in Virgin Blue Holdings Limited of 4.4%.

Other Movers

BHP Billiton plc added 0.9% to A$43.12 after the mining company said China''s steel industry association is expected to restrict iron ore price increase from foreign miners to between 20% and 30%, the official China Securities Journal reported on Wednesday.

Fortescue Metals Group Ltd advanced 2.0% to A$4.44 after the iron-ore producer said Chinese shareholder Hunan Valin Steel plans to triple its capacity through acquisitions and looks for Hong Kong listing to raise up to $1.68 billion.

Qantas Airways Limited increased 2.0% to A$2.99.

Rio Tinto Limited increased 0.3% to A$74.89 and Santos Limited the oil and gas producer climbed 0.6% to A$14.09.

Virgin Blue Holdings Limited rose 4.4% to A$0.59 after the airline is scheduled to start flights between Cairns, Australia and Auckland, New Zealand in March 2010.