Australian Land Sales Plunge; Woolworths Sales Rise 5.1%

Marcus Jacob
18 Apr, 2011
New York City

Stocks in Sydney gained and the meeting of G-20 finance ministers failed to produce any specific steps to lift the global economic growth. Retail price of petrol in Australia jumped to a 30-month high. Woolworths sales increased 5.1%. Residential land transaction dropped to the lowest in a decade.

[R]5:00 PM Sydney – Stocks in Sydney trading gained and the meeting of G-20 finance ministers failed to produce any specific steps to lift the global economic growth. Retail price of petrol in Australia jumped to 30-month high. Woolworths sales increased 5.1%. Residential land transaction dropped to the lowest in a decade as prices soar.[/R]

Australian stocks edged higher but lacked conviction in trading. Stocks meandered much of the session after the G-20 meeting of finance minister failed to produce any agreement.

China’s sharp jump in inflation has kept investors guessing the next move from the regional governments on the mainland.

The ASX 200 index increased 9.8 or 0.2% to 4,861.90 and All Ordinaries index gained 6.1 or 0.1% to 4,954.40.

The Australian dollar closed at US$1.05 and crude oil declined increased 92 cents to US$10.8.74. Retail price of petrol at gas stations increased to $1.43 a liter according to the Australian Institute of Petroleum.

Land transactions continue to decline in major cities in Australia as price hover near record highs. The latest HIA-RP Residential Land Report showed land sales volume dropped 40.4% in the fourth quarter of 2010 compared to a year ago quarter in 2009.

The residential land prices increased 5.9% in the quarter and added 8.2% in the year. Prices in Melbourne rose the most in the nation by 13.5% and in Sydney gained 3.6%. Hobart prices dropped 14.5%.

The weighted median value increased 4.1% in the quarter to $194,161 and with prices in Sydney leading the nation with average price of $269,000.

The average lot price in Melbourne was $220,000 and sales plunged 50.1% and in the Sunshine Coast was $240,000.

Woolworths Sales Increased 5.1%

Woolworths third quarter sales ending on April 3 increased to $13.56 billion from $12.91 billion a year ago. Adjusting for Easter seasonality, sales increased 5.6%. Petrol sales increased 13% in the quarter, largely on the higher retail prices.

The food and liquor division sales increased 4.6% to $9.16 billion from $8.75 billion a year ago. The company confirmed the full year net earnings to increased between 5% and 8% in the current fiscal year.

Stock Movers

Mining companies closed lower after China reported sharply higher inflation and faster than expected economic growth.

BHP Billiton declined 4 cents to $47.49 and Rio Tinto dropped 15 cents to $84.

WorleyParsons gained 63 cents to $31.60 after it won a contract of $65 million from energy company Woodside Petroleum. The parent Transfield Services also increased 4 cents to $3.49.

Woolworths increased 19 cents to $26.72 after the retailer reported third quarter earnings increased 5.1% and the company kept the earnings guidance for the full-year unchanged.

Banks closed higher in trading. Westpac increased 15 cents to $24.95 and the Commonwealth Bank of Australia added 31 cents to $52.53 and ANZ gained 12 cents to $23.73.

Leighton Holdings declined 25 cents to $24.63 after the company’s Mid-east subsidiary Al Habtoor Leighton will need to raise more capital if payments for ongoing projects are not received on time.

Challenger increased 2 cents to $4.86 after the financial services firm revised its full year life annuities sales target 28% higher to $1.8 billion.