Sydney Retreats 1.2%; Myer Net Drops 38%

Chandrasekhar Atreya
16 Sep, 2010
New York City

The index of stocks in Australia declined more than 1% after rallying for 3-day rally. Australian economy is increasingly linked with the Chinese economy according to a government report. Merchandise import drops in August. CNPC signs an agreement with Chevron to develop Wheatstone LPG project.

[R]6:00 PM Sydney, Australia – The index of stocks in Australia declined more than 1% after rallying for 3-day rally. Australian economy is increasingly linked with the Chinese economy according to a government report. Merchandise import drops in August. CNPC signs an agreement with Chevron to develop Wheatstone LPG project.[/R]

Australian stocks snapped a three-day rally and dropped more than 1%. The sharp decline came despite the firm commodities prices in international markets.

The ASX 200 Index lost 1.21% or 56.20 to close at 4,605.30.

Australian consumers expect prices to rise in September, reversing falls over the past four months on the strong jobs and economic growth, a survey showed.

Merchandise imports fell by $2.15 billion in August to $17.584 billion, seasonally adjusted, Australian Bureau of Statistics released Thursday showed.

Myer Holdings Ltd reported a 38.2% fall in annual net profit to A$67.18 million, after accounting for costs of a public offering.

The company also said that it expects to earn 10% more profit in the year ending June 2011, after completing refurbishments of old units and opens new outlets in the year.

Conquest Mining said it has positioned itself to take full ownership of the Pajingo gold mine in Queensland after convincing Heemskirk Consolidated to sell its 40% stake in the mine.

China National Petroleum and Chevron are expected to partner in $25 billion Wheatstone LPG project in Western Australia as part of a wider agreement between the two companies.

The second-largest U.S. energy producer and CNPC intend to collaborate on the development of gas fields in the Carnarvon Basin off northwest Australia and exploration in China, said Gareth Johnstone, a spokesman for Chevron from Singapore. The companies signed an agreement in Beijing late Wednesday.

Australia’s economic strength is no longer marching in step with the U.S. economy but is instead increasingly reliant of China, the Reserve Bank of Australia said Thursday.

The expert panel charged with overseeing the implementation of the federal government’s mineral resource rent tax is scheduled to meet next week for the first time in Canberra.

Continental Coal Ltd, based in South Africa said it entered into an agreement with Mashala Resources to take a 64.1% stake for $35 million subject to government approvals.

Japan’s Marubeni Corporation could spend as much as $1 billion on upstream energy assets in Australia, as part of a $4 billion international expansion over the next two years.

Resource News

Total SA, France based oil explorer said it will send one of its key global project experts to revive momentum at its second major Australian venture, the $23 billion Ichthys LNG project.

Cockatoo’s $158 million stock offering was priced at 45 cents per share after the stock offering was filed to be priced between 43 cents and 47 cents a share.

Thudelarra Exploration said it received additional assay results from the first phase of RC drilling at its Red Bore project.

Ashburton Minerals entered an option agreement under which it can buy a 100% stake in the Yea gold project in Victoria.

Aussie Q Resources said assay results from an additional two drill holes at the southern end of Greater Whitewash in Queensland have encountered elevated molybdenum mineralization.

Gainers & Losers

Austar United Communications Ltd led gainers in the ASX 200 with a gain of 2.78% to A$0.925 followed by Western Areas NL 2.65% to A$5.80 and Pacific Brands Ltd 2.63% to A$1.17.

Sundance Resources Ltd led decliners in the index with a fall of 8.16% to A$0.225 followed by James Hardie Industries 5.89% to A$5.59 and Sigma Pharmaceuticals 5.1% to A$0.465.