Australian Stocks Rise; Griffin Coal Bonds Fall

Mayank Mehta
05 Jan, 2010
New York City

Australian stocks increased following a rebound in energy and metals markets. Griffin Coal Mining Co appointed an administrator and is looking to sell assets of coal leases. Lihir Gold and Newcrest Mining gain on a strength in copper, silver and gold.

[R]8:00 AM Sydney, Australia – Australian stocks increased following a rebound in energy and metals markets. Griffin Coal Mining Co appointed an administrator and is looking to sell assets of coal leases. Lihir Gold and Newcrest Mining gain on a strength in copper, silver and gold.[/R]

A rebound in commodities prices after reports of growing manufacturing sectors in China, U.S. and India lifted sentiment in trading.

The ASX 200 index in Australia increased 48.00 or 0.98% to 4,924.30 and of the stocks in S&P ASX 200 index, 140 increased, 50 declined and 10 were unchanged.

The government is preparing the sale of 4-G mobile wireless spectrum in late January and may raise as much as A$1.5 billion according to a report by Australian Financial Review. Telstra Corp Ltd, the dominant carrier is preparing to bid for the spectrum but lawmakers have demanded that the carrier separate its retail and wholesale operations.

Griffin Coal Mining Company, the failed coal mine based in Western Australia may sell its assets to pay bond holders. The company raised $475 million of 10-year bonds that yield 9.5% in the U.S. The bonds are trading at 45 cents to a dollar. Griffin appointed KordaMentha as its administrator.

ASX Movers

The Reject Shop Limited led the decliners in the S&P ASX 200 index with a loss of 4.9% followed by losses in iSOFT Group Limited of 3.9%, in Energy World Corporation Limited of 3.7%, in Emeco Holdings Limited 3.0% and in Harvey Norman Holdings Limited 2.9%.

Ardent Leisure Group led gainers in the S&P ASX 200 index with a rise of 7.5% followed by gains in Boart Longyear Limited 6.7%, in Gindalbie Metals Ltd of 6.4% and in Dominion Mining Limited of 6.1%.

Other Movers

BHP Billiton plc added 0.4% to A$43.28.

Centro Properties Group decreased 1.5% to A$0.31 and the developer under restructuring said that it has appointed current non-executive director Robert Tsenin as its new group chief executive officer and managing director.

Lihir Gold Limited climbed 1.5% to A$3.35.

National Australia Bank Limited climbed 1.2% to A$27.75 after the lender on Monday sold A$1.75 billion of notes in a private placement market, said IFR, a Thomson Reuters service.

Newcrest Mining Limited the gold miner advanced 2.0% to A$36.72.

Qantas Airways Limited increased 0.6% to A$2.96 after the carrier’s low cost subsidiary Jetstar and AirAsia negotiate their strategic agreement.

Santos Limited the oil and gas explorer rose 1.4% to A$14.50.

Wesfarmers Limited gained 1.3% to A$31.67 after the conglomerate may look to buy the assets of collapsed Western Australian coal supplier Griffin Coal, according to media reports.

Woodside Petroleum Ltd increased 0.9% to A$47.97 and the energy explorer is looking for a replacement partner after PetroChina decided not to exercise its option to continue with the Browse liquefied natural gas project.