Australian Stocks Gain 1.1%; Woolworths Net Up 5%

Marcus Jacob
25 Aug, 2011
New York City

The Australian stocks traded higher after a barrage of earnings. Virgin Blue reported smaller than expected losses. Retailer Woolworths said annual earnings rose 5% on sales increase of 4.9%. Leighton appointed new chief executive and chairman.

[R]4:30 PM Sydney – The Australian stocks traded higher after a barrage of earnings. Virgin Blue reported smaller than expected losses. Retailer Woolworths said annual earnings rose 5% on sales increase of 4.9%. Leighton appointed new chief executive and chairman.[/R]

The Australian stocks closed lower as investors digested a flood of earnings. BHP Billiton reported a record earnings and Macarthur Coal, Qantas and Pacific Brands reported better than expected earnings.

The ASX 200 index increased 45.20 or 1.1% to 4,212.8 and All Ordinaries index added 44.80 or 1.1% to 4,280.50.

The Australian dollar closed flat to US$1.049 and gold price declined $104.63 to US$1,844.13.

In trading, turnover decreased to 2.3 billion shares worth $5.6 billion with 610 stocks rising, 405 declining and 339 unchanged.

Grocery wholesaler Metcash won a court ruling to proceed with the purchase of Franklins for $215 million.

The Australian Competition and Consumer Commission’s appeal in the Federal Court was rejected on the ground that another offer will be made and the company will accept the offer.

Stock Movers

BHP Billiton Ltd increased 40 cents to $38.61 and Rio Tinto added 80 cents to $69.73. Newcrest Mining Ltd decreased $1.70 to $38.70.

BHP Billiton a day ago reported record sales and earnings for the fiscal year. Revenues rose 36% to $71.4 billion and earnings soared 86% to $23.65 billion.

Leighton Holdings declined 70 cents or 3% to $20.61 and the company appointed new chief executive Hamish Tyrwhitt and Stephen Johns replacing David Mortimer.

Commonwealth Bank of Australia increased 78 cents to $47.49 and National Australian Bank added $0.53 to $23.07. ANZ gained 19 cents to $19.88.

Qantas added 7 cents to $1.59 and the airline reported a day ago annual net profit soared to $250 million. Revenues increased 8% to $14.9 billion and underlying pre-tax profit jumped to $552 million.

Virgin Blue Holdings increased 3.5% or 14.9 cents to 27 cents and the air carrier reported a net loss of $67.8 million for the fiscal year ending in June.

Woolworths declined $1.52 to $25.75 after the retailer reported full-year earnings increased 5.1% to $2.12 billion.

Sales in the year rose 4.9% to $54.50 billion and the Australia focused retail business suffered in the year on poor consumer sentiment. Operating earnings at Big W declined 11.5% to $177 million and at Dick Smith dropped 27% to $22 million.

The Australian food and liquor division’s operating earnings increased to $2.67 billion and at New Zealand supermarket division gained 5.1% to $244.1 million.

Toll Group soared 8% to $4.67 after it reported full-year earnings increased 3.7% to $294.8 million and revenues rose 18% to $8.23 billion. The company also announced a final dividend of 13.5 cents a share.

The company has acquired eight freight forwarding companies in the last three years and has yet to show the benefits of the acquisitions.