Australian Index Drops 1.2%, Wesfarmers Net Up 23%

Marcus Jacob
18 Aug, 2011
New York City

Stocks in Sydney declined tracking losses in Asian markets on the growing global uncertainties. Wesfarmers reported full year profit increased 23% from a year ago despite difficult weather conditions. The Australian dollar edged lower for the second day this week.

[R]5:00 Sydney – Stocks in Sydney declined tracking losses in Asian markets on the growing global uncertainties. Wesfarmers reported full year profit increased 23% from a year ago despite difficult weather conditions. The Australian dollar edged lower for the second day this week.[/R]

Stocks in Australia closed lower after a sell-off in Asian markets on the renewed global economic worries. The market index in Tokyo, Hong Kong and Shanghai declined more than 1% and in Mumbai dropped more than 2%.

The ASX 200 index fell 52.7 or 1.2% to 4,251.20 and the broader All Ordinaries index declined 52.4 or 1.2% to 4,319.40. The broader index has been under pressure since it last crossed 5000 on April 16, 2010.

The Australian dollar declined 1% to $1.044.

In trading, turnover declined to $5.13 billion with 355 stocks closing higher, 653 lower and 348 closing unchanged.

Wesfarmers, the operator of second largest retail store chain reported fiscal year earnings increased 23% from a year ago despite severe natural disasters in its key markets.

Earnings in the fiscal year ending in June increased to $1.92 billion from $1.57 billion a year ago on annual revenues increase of 6% to $54.88 billion.

The retailer also increased its full year dividend to $1.50 a share from $1.25 a share a year ago.

Stock Movers

Energy stocks were among the leading decliners after crude oil price declined.

Woodside Petroleum declined 89 cents to $36.87, Santos Ltd decreased 46 cents to $11.68 and Oil Search fell 15 cents to $6.33.

Rio Tinto decreased $1.80 to close at $73.34 and BHP Billiton fell 72 cents to $39.10. Fortescue Metals closed down 19 cents $6.05.

Newcrest Mining declined 43 cents or 1.1% to $38.66 after gold price increased $7.55 to US$1,794.70.

Commonwealth Bank decreased 8 cents to close $47.32 and National Australia Bank fell 20 cents to $23.16. Westpac increased 14 cents to $24.24 and ANZ decreased 16 cents to close at $20.42.

APN News & Media dropped 11 cents to 78 cents after the diversified publisher took a large impairment charges relate to its New Zealand operations.

Foster’s Group increased 4 cents to $5 and the brewing company rejected higher hostile offer from SABMiller.

AMP gained 11 cents to $4.26 and the wealth manager reported 18% decline in first half profit of $349 million.