Australian Retail Sale Slows; Dollar Falls

Mayank Mehta, Chandrasekhar Atreya and Darlington Musarurwa
06 May, 2010
New York City

The Australian dollar falls as retail sales growth slows. Banpu Pcl, the Thai coal producer buys 14.9% stake in Centennial Coal Limited. Brambles Ltd expects sales for fiscal 2010 to be flat.

[R]10:35 PM Sydney, Australia – The Australian dollar falls as retail sales growth slows. Banpu Pcl, the Thai coal producer buys 14.9% stake in Centennial Coal Limited. Brambles Ltd expects sales for fiscal 2010 to be flat.[/R]

The Australian dollar declined after a government report showed that retail sales grew 0.3% in March over February, at half the estimated pace of 0.7%.

Thailand’s biggest coal producer Banpu Pcl bought a 14.9% stake in Australia’s Centennial Coal Ltd, gaining access to the mines of the world’s biggest exporter of the fuel. Earlier today two parcels of 39.48 million Centennial shares worth A$ 197.4 million were traded according to Australian Stock Exchange date.

The Bangkok-based company did not clarify what it paid for the deal in its Thai-language statement.

A high-speed fiber channel network should cost about A$38 billion without cooperation from Telstra Corp said a government-commissioned study.

‘After months of detailed and rigorous analysis, the study confirms that the government’s national broadband network is achievable, viable and will transform life and business in Australia’ said Communications Minister Stephen Conroy in a statement.

The wholesale network maybe built within eight years as per the study findings released in Canberra today.

ASX 200 index in Australia decreased or 100.80 or 2.16% to 4,573.20 and of the stocks in S&P ASX 200 index, 41 increased, 147 declined and 12 were unchanged.

ASX Movers

Sigma Pharmaceuticals Limited led decliners in the S&P ASX 200 index with a loss of 9.0% followed by Infigen Energy 7.8%, Murchison Metals Limited 7.3%, Australia and New Zealand Banking Group Limited 6.8% and Gunns Limited 5.9%.

Centennial Coal Company Limited led gainers in the S&P ASX 200 index with a rise of 18.0% followed by Gindalbie Metals Ltd 9.3%, Lynas Corporation Limited 5.2% and Whitehaven Coal Limited 4.3%.

Other Movers

BHP Billiton plc, the mining company, fell 2.9% to A$37.60.

Brambles Limited fell 1.6% to A$7.13 after the supplier of storage pallets says it expects sales for fiscal 2010 to be flat, reflecting a slow recovery in major markets. The company has reported a 1% drop in sales revenue for the nine months to March 31, while sales for its CHEP US business were down 4%.

Centennial Coal Company Limited surged 18.0% to A$4.71 after the coal producer announced that Banpu Public Company Limited has acquired a 14.9% stake in Centennial.

National Australia Bank Limited dropped 3.4% to A$25.86 after the bank said first half net interest income rose 4% to A$6.1 billion from A$5.88 billion a year ago. Net profit for the first half fell 21% to A$2.1 billion or 95.1 cents per share compared to net profit of A$2.66 billion or 136.1 cents per share a year ago.

Rio Tinto Limited, the mining company, fell 3.7% to A$65.69.

Sigma Pharmaceuticals Limited dropped 9.0% to A$0.40.