Australian Imports Surge 7%; Stocks Fall

Darlington Musarurwa
19 Jan, 2010
New York City

Australian imports surges 7% to A$17 billion in December. Newcastle coal exports in the last week declined 16% from the previous week to 1.56 million tons. Flight Centre upgrades profit forecast between 60% and 80%.

[R]3:00 AM New York, 7:00 PM - Australian imports surges 7% to A$17 billion in December. Newcastle coal exports in the last week declined 16% from the previous week to 1.56 million tons. Flight Centre upgrades profit forecast between 60% and 80%.[/R]

Australian stock indexes fell led by financial stocks on concern over the state of the global economy.

Flight Centre upgraded its profit forecast between 60% and 80%, citing a stronger performance in the second half of fiscal 2010.

In Sydney trading ASX 200 Index stocks fell 1.02 % or 49.9 to 4,861.20. Of the ASX 200 index stocks 28 increased, 164 fell, and 8 were unchanged. Computershare led gainers in the index shares with a rise of 8.2% followed by Flight Centre jumping 7.3% after a profit upgrade.

The Australian dollar dropped 0.2% to 92.43 US cents.

Dec Imports Rise 7% to A$17 billion

Australian Bureau of Statistics reported today the country’s goods imports on a balance of payments basis rose 7% to A$17.4 billion in December from the previous month.

Intermediate and other merchandise goods advanced 11%, with fuels and lubricants component soaring 26%, capital goods 7%, non-monetary gold rose 51%. However, consumption goods fell 1%.

The ABS noted that unadjusted, merchandise imports edged up 0.6% to A$17.7 billion in December from an upwardly revised A$17.6 billion a month ago.

Trade figures for January will be released on February 18.

Newcastle Coal Exports Decline 16%

Newcastle Coal Corp. reported that coal exports from the Newcastle port, fell 16% to 1.56 million metric tons last week from 1.85 tons a week ago.

Vessels waiting to load 4.5 million tons of coal increased to 54 from 53 a week earlier, while coal ships waiting to load queued for an average of 16.6 days from 15.3 days a week ago.

The waiting time for general cargo was gauged at 0.14 day.

Flight Centre Upgrades Profit 60% to 80%

Flight Centre Ltd. reported today that it is upgrading its profit forecast for the fiscal year 2009/2010 33% to A$160 million to A$180 million from the earlier projected A$125 million to A$135 million after a stronger than expected first half.

Pre-tax profit for the first half is projected to rise 13% to 19% between A$70 million to A$74 million.

According to the company, losses in the United States, consisting of A$5 million from the Liberty business, A$1.5 million in FCm Travel Solution losses and A$2.3 million in interest expense and A$2.3 million in one-off costs during the first half, are in line of expectations.

“Assuming that trading conditions continue to gradually recover, we are well placed to record stronger profit growth during the second half, as results during the corresponding period of 2008/09 were heavily affected by the global financial crisis,” said managing director Graham Turner.

ASX Movers

Mermaid Marine Australia Limited led the decliners in the S&P ASX 200 index with a loss of 5.4% followed by losses in IRESS Market Technology Limited of 5.4%, in Ausenco Limited of 5.2%, in PaperlinX Limited 4.6% and in Platinum Asset Management Limited 4.5%.

Computershare Limited led gainers in the S&P ASX 200 index with a rise of 8.2% followed by gains in Flight Centre Limited 7.3%, in Karoon Gas Australia Ltd of 4.2% and in Kingsgate Consolidated Limited of 3.9%.

Other Movers

BHP Billiton plc declined 0.3% to A$43.31 and the mining company and ArcelorMittal are in discussion to combine their operations in Liberia.

Computershare Limited increased 8.2% to A$12.40 after the company guided first half earnings per share will be 20% higher than the period a year ago.

Sonic Healthcare Limited decreased 3.8% to A$14.19 after the operator of medical laboratories in Europe declined after Citigroup lowered its rating on the stock.