Australians Charge Less on Cards

Darlington Musarurwa
12 Mar, 2010
New York City

Australia

[R]3:00 AM New York, 7:00 PM Sydney- Australia’s credit card transactions fall 22% to A$17.1 billion in January. ACCC delays ruling on AXA APH bid. Energy World Corporation Limited led gainers in the S&P ASX 200 index with a rise of 10.7%. Cape Lambert Resources sells Lady Annie for A$135 million.[/R]

Australian market averages rose fractionally and the government report indicated that credit card transactions slumped in January.

Commodity stocks led the market higher as crude oil prices jumped 0.1% to $82.20 a barrel and gold prices were flat at $1,108 an ounce.

In Sydney trading ASX 200 Index advanced 0.1% or 3.9 to 4,818.10.

Of the ASX 200 index stocks, 95 gained, 86 fell, and 19 were unchanged. Energy World Corporation led gainers in the index shares with a rise of 10.8% followed by Eastern Star Gas gaining 6.3%.

Other commodity stocks also increased. Dominion Mining edged up 3.3% to A$2.79 and Linc Energy jumped 3% to A$1.56.

The Australian dollar soared 0.1% to 91.56 U.S. cents.

Credit Card Transactions Fall 22%

Reserve Bank of Australia reported today that the total value of credit and charge transactions, including advances, decreased 22% to A$17.1 billion in January compared to A$22 billion the previous month, the largest monthly decline in five years.

Total credit and charge card balances outstanding declined 1.6% to A$46.1 billion from $46.9 billion a month earlier.

Balances outstanding rose 5% from a year ago compared with an average annual increase of 1% for the preceding five years.

ACCC Delays Rulings on AXA Asia Bids

Australian Competition and Consumer Commission said today that it will rule on separate bids for AXA Asia Pacific Holdings by AMP and NAB on April 1 and April 22 respectively.

The Commission was due to make its decisions on March 17.

AXA APH independent directors have since endorsed A$13.2 billion offer from National Australia Bank Ltd. However, AXA SA hasn’t announced yet whether it is prepared to ally with NAB.

AXA APH''s board intends to meet on March 20 to finalize the deal with NAB.

ASX Movers

Panoramic Resources Limited led the decliners in the S&P ASX 200 index with a loss of 4.2% followed by losses in AWB Limited of 3.6%, in Mirabela Nickel Ltd of 2.7%, in Billabong International Limited 2.4% and in Brambles Limited 2.4%.

Energy World Corporation Limited led gainers in the S&P ASX 200 index with a rise of 10.7% followed by gains in Eastern Star Gas Limited 6.2%, in CuDeco Limited of 5.8% and in Equinox Minerals Limited of 4.2%.

Other Movers

Cape Lambert Iron Ore Limited increased 8.9% to A$0.48 after the mineral explorer signed a conditional sale agreement with Hong Kong listed company China Sci-Tech Holdings Limited, for the sale of its 100% interest in the Lady Annie Project for A$135 million.

CuDeco Limited rose 5.8% to A$4.74 after the mineral explorer said it’s had “wide-ranging” talks with Xiangguang Copper and Sinosteel Group over its Rocklands project.

Fortescue Metals Group Ltd increased 0.4% to A$4.94 and the iron ore miner said that development of second stage Solomon project in Pilbara region of Western Australia may cost $5.7 billion.

Santos Ltd rose 1.3% to A$14.06.

Woodside Petroleum Ltd added 0.3% to A$45.41.