Retail Sales in Australia Rise; Dollar Firm

Darlington Musarurwa
07 Jan, 2010
New York City

Australia

[R]3:00 AM New York, 7:00 PM Sydney- Australia’s trade deficit narrows to A$1.7 billion in November and retail sales jump 1.4% in November. The Australian dollar edged lower but hovered near its highs. Kagara Ltd surged after it began its mining operations in the Western Australia.[/R]

Australian market averages fell 0.5% as investors locked in gains and on weaknesses in financial stocks. Losses were pared by rising commodity stocks.

In Sydney trading ASX 200 Index fell 0.5% or 22 to 4,899.40. Of the ASX 200 index stocks, 81 gained, 100 decreased, and 19 were unchanged.

Kagara Ltd. led gainers in the index shares with a rise of 9.9% followed by Atlas Iron gaining 4.7% as gold prices edged up 1.6% to $1,137 per ounce and crude oil prices advanced 1.3% to $82.80 a barrel.

Other commodity stocks gained. Minara Resources jumped 3% to A$0.85 and OZ Minerals climbed 2.4% to A$1.28.

The Australian dollar fell 0.02% to 91.94 US cents.

Australian Trade Deficit Narrows

Australian Bureau of Statistics reported today the country’s trade deficit dropped by A$380 million to A$1.7 billion in November from the previous month.

Exports dropped A$291 million to A$19 billion as the sale of metals and coal sales declined 15% and 14% respectively. Sales of gold declined 3%. Service exports fell 1%.

Imports dropped 3% to A$20.7 billion as imports of capital goods plunged 8% and intermediate and other merchandise goods 2%.

Consumption goods imports increased A$12 million in the period, while service imports tumbled A$19 million.

Australian Retail Sales Rise 1.4%

Separately, the ABS said that retail sales climbed 1.4% to A$20 billion in November following a 0.4% rise the previous month.

Sales at cafes, restaurants and takeaway food services rose 1.1%, food retailing 0.4%, department stores 0.4%, household good retailing 0.3% and clothing, footwear and personal accessory retailing 0.3% in trend terms.

New South Wales led all states with retail sales rising 0.7%.

ASX Movers

OM Holdings Limited led the decliners in the S&P ASX 200 index with a loss of 4.5% followed by losses in Boart Longyear Limited of 3.7%, in Medusa Mining Limited of 3.7%, in Riversdale Mining Limited 3.4% and in Challenger Financial Services Group Limited 3.3%.

Kagara Ltd led gainers in the S&P ASX 200 index with a rise of 9.9% followed by gains in Atlas Iron Limited 4.6%, in APN News & Media Ltd of 3.8% and in WorleyParsons Limited of 3.8%.

Other Movers

Alumina Limited the producer of the material used to make aluminum rose 1.8% to A$1.96.

Atlas Iron Limited the iron ore producer added 4.6% to A$2.23 and David Jones Limited the department store rose 0.7% to A$5.13.

Gloucester Coal Ltd the producer advanced 1.1% to A$9.90.

Harvey Norman Holdings Limited the electronics retailer increased 3.6% to A$3.95 and JB Hi-Fi Limited the best performing retailer increased 0.1% to A$21.35.

Kagara Ltd surged 9.9% to A$1.22 after the zinc and copper producer began its mining at its Lounge Lizard high grade nickel sulphide deposit in Western Australia.

Woodside Petroleum Ltd the oil and gas producer rose 1.3% to A$48.90.