Sydney: Coles, Newcrest, Caltex, OneSteel

Darlington Musarurwa
22 Apr, 2010
New York City

Stocks in Australia closed lower as interest rates are expected remain high. Newcrest Mining quarterly gold production declines. Coles food and liquor sales in fiscal third quarter ending in March rose 3.9%.

[R]7:00 PM Sydney – Stocks in Australia closed lower as interest rates are expected remain high. Newcrest Mining quarterly gold production declines. Coles food and liquor sales in fiscal third quarter ending in March rose 3.9%.[/R]

Australian markets closed lower after a weakness in international markets and the IMF lowered the estimate of global economic growth in 2011. The International Monetary Fund worried that governments around the world will remove stimulus prematurely and hurt the incipient economic recovery.

Australian treasurer said that the government finances are dramatically stronger leading to faster withdrawal of fiscal stimulus than most advanced economies are possible after the IMF worried that interest rate may remain elevated in Australia.

Australian dollar fell for the second day against the yen as Greece struggles to fund its budget deficit.

Qantas and Cathay Pacific flights schedules return to normal after nearly 80% of flights operate on a schedule.

The Australian benchmark index fell after commodities declined. Gold prices dropped 0.1% to $1,147 per ounce and crude oil prices fell 0.1% to $83.6 per barrel.

In Sydney trading ASX 200 Index decreased 1% or 46.9 to 4,907.40.

Of the ASX 200 index stocks, 47 gained, 136 fell, and 17 were unchanged. FKP Property led advancers in the index with a rise of 5.6% followed by Graicorp Ltd jumping 4.7%.

The Australian dollar gained 0.2% to 92.79 U.S. cents.

Coles Q3 Retail Sales Rise

Coles food and liquor sales in the third quarter ended March climbed 3.9% to A$5.5 billion from the same period a year earlier.

Coles food and liquor sales for year-to-date edged up 6.1% to A$17.7 billion.

Total Coles Express sales, excluding fuel, gained 9.1% to A$1.5 billion from a year ago despite a 0.5% drop in comparable fuel volumes.

Convenience shop sales, excluding fuel, advanced 3.8% and comparable store sales increased 1.6%.

In the Home Improvement division sales climbed 7.9% to A$1.5 billion, while store-on-store cash sales rose 3.9%.

However, sales from the Target division were flat at A$725 million.

Overall, total sales from Westfarmer’s key Coles supermarkets advanced 4.9% to A$6.9 billion.

Managing director Richard Goyder said third quarter retail sales were “pleasing”, particularly given the rising interest rates and the effects of the federal stimulus that helped spur sales in the comparable period a year earlier.

Newcrest Mining Quarterly Gold Production Falls

Newcrest Mining reported today that its third quarter gold production declined 6% to 416,651 ounces from a quarter earlier, but rose 14% from the same period a year ago.

However, copper output decreased 12% to 20,598 tons.

The miner lowered its full year gold production estimate for the second time to between 65,000 ounces to 75,000 ounces from the previous estimate between 75,000 ounces to 85,000 ounces, because of commissioning problems at Hidden Valley mine.

Overall, output is expected to be at the lower end of the previous guidance of 1.81 million and 1.91million ounces.

Caltex Australia First Quarter Profit Rises

Caltex Australia chief executive officer Julian Segal announced today that unaudited profit after tax on a replacement cost of sales operating basis for the quarter ended March rose 33% to A$130 million from A$98 million a year ago on strong weighted average refining margins.

The Australian Competition and Consumer Commission recently blocked its proposed takeover of 302 Mobil petrol retail stations.

ASX Movers

Murchison Metals Limited led decliners in the S&P ASX 200 index at 5.1% followed by OneSteel Limited 4.6%, Macmahon Holdings Limited 4.2%, St Barbara Limited 3.7% and Equinox Minerals Limited 3.6%.

PaperlinX Limited led gainers in the S&P ASX 200 index at 7.2% followed by FKP Property Group 6.7%, GrainCorp Limited 4.5% and Roc Oil Company Limited 4.4%.

Other Movers

BHP Billiton plc fell 1.3% to A$42.16. The mining company is facing an investigation by the U.S. Securities and Exchange Commission relating to a bauxite exploration project in Cambodia, according to The Australian newspaper.

Caltex Australia Limited dropped 3.2% to A$11.87 after the oil refiner said it is “cautious” on outlook for refining margins.

Newcrest Mining Limited fell 0.3% to A$33.84 after the gold mining company reduced its annual guidance, after slower than expected commissioning and ramp up at its Hidden Valley project.

OneSteel Limited fell 4.6% to A$3.73.

Rio Tinto Limited declined 2.3% to A$76.64. The company plans to invest $340 million in the construction of a new Molybdenum Autoclave Process facility at Kennecott Utah copper in Magna, Utah.