Australian Trade Deficit, Construction Ease

Darlington Musarurwa
04 Mar, 2010
New York City

Australian trade deficit eases to A$1.1 billion in January. Linc is reviewing offers for three properties that it estimates are worth $1.5 billion. Telstra Corp hired bankers for its bond offering in Europe. Australian building industry expands at a slower pace in February.

[R]3:00 AM New York, 7:00 PM - Australian trade deficit eases to A$1.1 billion in January after exports in the month increased 1% and imports declined 3%. Linc is reviewing offers for three properties that it estimates are worth $1.5 billion. Telstra Corp hired bankers for its bond offering in Europe. Australian building industry expands at a slower pace in February.[/R]

Australia’s stock index rose in volatile trading as the trade deficit narrowed in January, according to a government report. Commodity stocks also supported gains.

The Australian building industry expanded at a slower pace in February according to the index released by the Australian Industry Group and Housing Industry Association.

The latest data released by the association shows the index of building industry declined 4.9 points to 52.8 from 57.7 in January. The measure above 50 shows an expansion.

Telstra Corp hired BNP Paribas, JP Morgan Chase and Deutsche Bank to sell bonds in Europe according to its spokesman Craig Middleton in an interview with Bloomberg News.

In Sydney trading ASX 200 Index gained 0.3% or 14.8 to 4,750.50.

Of the ASX 200 index stocks, 95 gained, 86 fell, and 19 were unchanged. Carnarvon Petrol led gainers in the index stocks with a rise of 7.5% followed by Carsales.com.au jumping 6.2%.

The Australian dollar fell 0.5% to 90.13 U.S. cents.

Australia’s Trade Deficit Eases to A$1.1 billion

Australia’s Bureau of Statistics reported today that the country’s balance of goods and services deficit dropped by A$998 million from December 2009 to A$1.17 billion in January.

Exports advanced 1% to A$20.1 billion as non-monetary gold edged up 15% and non-rural goods rose 1%.

Rural goods declined 2% while service exports climbed 13%.

The ABS notes that imports declined 3% to A$21.3 billion as intermediate and other merchandise goods decreased 7%, fuels and lubricants 25%, non-monetary gold 47% and capital goods 1%.

Consumption goods climbed 2% and service imports increased A$20 million.

Linc Considers Offer for Queensland Properties

Linc Energy said today it is considering a written offer for the purchase of its three properties in Queensland, which the company believes is worth over $1.5 billion.

The company has unsuccessfully tried for the past eight months to find a potential buyer for the properties. In a statement Linc said that the company is negotiating with three parties.

ASX Movers

Spotless Group Limited led the decliners in the S&P ASX 200 index with a loss of 4.8% followed by losses in Lend Lease Corporation Limited of 4.0%, in Perpetual Limited of 3.6%, in Sundance Resources Limited 3.5% and in PaperlinX Limited 3.5%.

Carnarvon Petroleum Limited led gainers in the S&P ASX 200 index with a rise of 7.5% followed by gains in Carsales.com Ltd 6.1%, in Panoramic Resources Limited of 6.1% and in Linc Energy Ltd of 5.4%.

Other Movers

BHP Billiton plc added 1.4% to A$42.28.

CSR Limited gained 3.0% to A$1.68 on the speculation that Bright Food may raise its bid for the company’s unit.

Henderson Group Plc rose 0.9% to A$2.10 after the money manager was upgraded to “buy” from “hold” at Goldman Sachs JBWere Pty.

Mirabela Nickel Ltd the mineral explorer rose 3.0% to A$2.36.

Newcrest Mining Limited the gold producer climbed 1.6% to A$33.50.

Paladin Energy Ltd fell 3.2% to A$3.62 after the uranium explorer was downgraded to “sector perform” from “outperform” at RBC Capital.

Panoramic Resources Limited increased 6.1% to A$2.43 after the mining company was upgraded to “outperform” from “sector perform” at RBC Capital.

Ramsay Health Care Limited dropped 1.7% to A$12.73 after the private hospital operator was downgraded to “equalweight” from “overweight” at Morgan Stanley.

Rio Tinto Limited advanced 0.7% to A$74.40 after the mining company said it is in discussions with Russia''s OAO Norilsk Nickel about the future of their joint venture, according to a Dow Jones report.