Australian Stocks Rest on China Manufacturing Slow Down

Marcus Jacob
01 Jul, 2011
New York City

Australian stocks traded lower after rallying for two days in a row. For the week the benchmark index ASX 200 gained 1.84%. Australian dollar hovered near recent high. Suncorp guided better than expected insurance margin and Downer EDI gained after it delivered first train to NSW government.

[R]4:30 PM Sydney – Australian stocks traded lower after rallying for two days in a row. For the week the benchmark index ASX 200 gained 1.84%. Australian dollar hovered near recent high. Suncorp guided better than expected insurance margin and Downer EDI gained after it delivered first train to NSW government.[/R]

Australian stocks retreated after surging in the last four days. China reported weakening manufacturing growth for the third week in a row and tightened monetary policy to curb inflation and speculation in real estate market.

Australian stocks edged lower after China reported a decline in manufacturing growth for the third month in a row and tightened lending requirements.

The ASX 200 index decreased 16.80 or 0.4% to 4,591.2 and All Ordinaries index added 0.3% or 11.90 to 4,647.90.

The ASX200 index added 7% in the first half and eight mining stocks were among the ten best performing stocks.

The Australian dollar decreased to US$1.0712 and crude oil gained $0.35 US$95.10. The Australian dollar is still at a three-decade high against the British pound and American dollar.

Stock Movers

Energy related stocks closed higher after crude oil extended gains for the third day and closed above $95 a barrel.

Santos Ltd decreased 4 cents to $13.50, Woodside Petroleum fell 10 cents to $40.90 and Oil Search Limited decreased 7 cents to $6.58.

BHP Billiton Ltd fell 3 cents to $43.77 and Rio Tinto decreased $0.16 to $82.83. Newcrest Mining Ltd increased 2 cents to $37.73.

Lynas Corp dropped 12% to $1.75 after Malaysian government imposed new demands ahead of the first production at its rare earth materials plant.

Suncorp rose 0.3% to $8.16 after the company maintained its guidance of at least 12% in core margins. The second largest home and auto insurer in Australia said it will pay more for its reinsurance cover.

Downer EDI Limited increased 6 cents or 1.6% to $3.76 after the company delivered its first Waratah train to the New South Wales state government.