Australian Index Falls 1.8%; Bluscope Estimates Annual Loss

Marcus Jacob
12 May, 2011
New York City

Australian stocks dropped 1.8% after crude oil prices plunged more than 5% in New York trading. Resource and energy complex stocks led the decliners. Optus estimated slower earnings and revenues growth in the current fiscal year. Bluescope Steel estimated full year loss.

[R]4:30 PM Sydney – Australian stocks dropped 1.8% after crude oil prices plunged more than 5% in New York trading. Resource and energy complex stocks led the decliners. Optus estimated slower earnings and revenues growth in the current fiscal year. Bluescope Steel estimated full year loss.[/R]

The ASX index declined 84.10 to 4,696.10 and All Ordinaries index fell 81.6 or 1.7% to 4,776.60.

The Australian dollar declined 2 cents to US$1.0601 and crude oil prices fell US$1.37 to US$96.84.

The dollar declined after the employment in April fell 22,100 and the jobless rate was steady at 4.9% according to the data released by the Australian Bureau of Statistics.

Separately, Reserve Bank of Australia’s trade weighted index declined 77.5 from 79 a day ago and highest since February 1985.

Stock Movers

BHP Billiton declined $1.17 or 2.6% to $44.13 and Rio Tinto fell $1.66 or 2% to $79.79. Newcrest Mining dropped 3.3% or $1.31 to $38.19.

Bluescope Steel estimated full year loss on higher Australian dollar and strong competition from imported steel. The company estimated a small second half loss after $55 million loss in the first half.

Energy complex stocks declined after crude oil dropped 5% in New York trading. Santos dropped 46 cents to $14.20 and Woodside Petroleum fell $1.17 to $45.03.

Energy Resources of Australia 4.5% to $4.84 and Oil Search dropped 2.8% to $6.92.

Banks closed lower. National Australia Bank declined 37 cents to $26.93 and Westpac dropped 24 cents to $23.61. Commonwealth Bank fell 82 cents to $51.70 and ANZ dropped 79 cents to $22.38.

Singapore Telecommunications increased 5 cents to $2.40 after its mobile telecom network Optus reported fiscal 2011 net increased 15% and estimated revenues and earnings to grow at a slower pace in low “single-digit.”

Ten Network Holdings increased 0.5 cent to $1.295 and a court ruled that new chief executive James Warburton will have to wait till January 1 to take over the job.