Australian Home Loans at 10-month Low; Leighton Reaffirms Annual Outlook

Marcus Jacob
16 May, 2011
New York City

Australian stocks edged lower tracking the weakness in commodities prices. Macarthur Coal lowered its stake in Codrilla coal deposits in exchange for $75 million. Leighton soared 3% after it reported a loss in nine months but reaffirmed its annual earnings outlook.

[R]4:30 PM Sydney – Australian stocks edged lower tracking the weakness in commodities prices. Macarthur Coal lowered its stake in Codrilla coal deposits in exchange for $75 million. Leighton soared 3% after it reported a loss in nine months but reaffirmed its annual earnings outlook.[/R]

Australian stocks declined as markets in Asia declined on the ongoing Greece worries and a fall in commodities prices. Crude oil, base and precious metals declined.

The ASX 200 index declined 61.4 or 1.3% to 4,650 and broader All Ordinaries index fell 63.10 or 1.31% to 4,724.20.

The Australian dollar edged lower to US$1.053 and crude oil fell US$1.74 to US$97.91 a barrel.

The number of home loans approvals declined seasonally adjusted 1.5% in March from the previous month. The home loans fell to a 10-month low but loans to property investors increased 2.1% in March and proportion of first time home buyers increased to 16% from 14.9% in February.

Stock Movers

BHP Billiton declined 80 cents or 1.8% to $43.52 and Rio Tinto declined 1.3% or $1.09 to $79.06.

Macarthur Coal increased 1 cent to $11.43 after the coal miner lifted its profit estimate for 2011 to between $240 million and $260 million from the previous estimate between $185 million and $205 million.

The company also lowered its stake in Codrilla coal deposit in Queensland to 85% from 73.3% and received $74.9 million for the sale.

Whitehaven Coal dropped 15.6% to $5.43 after the company confirmed it ended its plan to find a buyer and the company will now focus on developing its coal mines.

Leighton soared 3% or 68 cents to $23.55 after it reported a loss of $382 million for the nine months to March and said it will not issue final dividend. The construction group reiterated its annual net income estimate between $600 million and $650 million.

The company also said order book at the end of March stood at $46 billion.

Banks declined. National Australia Bank fell 1 cent to $26.88 and Commonwealth Bank dropped 27cents to $51.48. ANZ declined 14 cents to $22.32.

Santos dropped 1.8% to $14.10 after crude oil prices eased nearly 2% in New York trading on Friday.

JB Hi-Fi dropped 85 cents to $17.35 after it completed the purchase of its share in a direct with shareholders.

Fairfax Media declined 5 cents to $1.04 after the media company renegotiated its bank debt.