Australian PPI Drops 0.4%; Stocks Weak

Darlington Musarurwa
25 Jan, 2010
New York City

Australia

[R]3:00 AM New York, 7:00 PM - Australia’s producer prices dropped 0.4% in December. Woodside discovers gas during drilling. Fonterra raises NZ$271 million from dairy farmers.[/R]

The Australian stock index plummeted 0.7% following the weaknesses on Wall Street and tighter banking regulations in the U.S.

Commodity stocks dropped as gold prices dropped 1% to $1,092 per ounce and crude oil prices declined 1.8% to $74.8 per barrel.

In Sydney trading ASX 200 Index fell 1.7% or 32.7 to 4,717.90.

Of the ASX 200 index stocks, 56 rose, 133 fell and 11 were unchanged. Sundance Resources led gainers in the index shares with a rise of 7.1% followed by Cudeco Ltd. advancing 6.6%.

The Australian dollar jumped 0.6% to 90.57 U.S. cents.

Producer Prices Fall 0.4% in Dec

Australian Bureau of Statistics reported today that the country’s producer prices fell 0.4% in the three months ended December from the previous quarter, and fell 1.5% from the same period a year earlier.

Prices were dragged by petroleum refining 6.9%, electronic equipment and manufacturing 9.1% and industrial machinery and equipment manufacturing 2.5%.

However losses were pared by increases in agriculture 11.2% and building construction 0.3%.

Woodside Discovers Gas During Drilling

Woodside Petroleum announced today that it has discovered gas while drilling at its Noblige-1 exploration well in permit WA-404-P.

The Noblige-1 well is located in Western Australia’s Carnarvon Basin in the Greater Pluto area.

Woodside is operator of WA-404-P and has a 50% stake, while Hess Exploration Pvt Ltd also has 50% equity in the project.

Fonterra Raises NZ$271 million From Suppliers

Fonterra Cooperative Group reported today that it has raised NZ$271 million as a third of New Zealand farm owners bought shares. The farmers had until Thursday to subscribe to as much as 20% more shares.

ASX Movers

Macquarie Infrastructure Group led the decliners in the S&P ASX 200 index with a loss of 8.8% followed by losses in Energy World Corporation Limited of 4.4%, in Spotless Group Limited of 3.8%, in Crane Group Limited 3.7% and in Alesco Corporation Ltd 3.4%.

Sundance Resources Limited led gainers in the S&P ASX 200 index with a rise of 7.1% followed by gains in CuDeco Limited 6.5%, in Ausenco Limited of 5.3% and in Whitehaven Coal Limited of 5.1%.

Other Movers

BHP Billiton plc the mining company decreased 1.0% to A$41.25.

Santos Limited the oil and gas producer declined 1.1% to A$13.39.

Woodside Petroleum Ltd fell 0.8% to A$44.00 after the company advises that the Noblige-1 exploration well in permit WA-404-P has indications of gas from measurement-while-drilling logs at several levels, including over a gross interval of about 300 metres in the intra-Triassic primary target.