Australian Stocks Flat; Citic to Sell Macarthur Stake

Marcus Jacob
21 Oct, 2011
New York City

Australian stocks were flat today and for the week gained 1.5% on the optimism that the Europe will increase the size of the rescue fund. Commodities were weak and mining companies closed lower. Qantas and unions were asked to resolve their difference by Prime Minister Gillard.

[R]6:00 PM Sydney – Australian stocks were flat today and for the week increased 1.5% on the optimism that the euro zone leaders will increase the size of the rescue fund. Commodities were weak as they have been all week and mining companies closed lower. Qantas Airways and unions were asked to resolve their differences by Prime Minister Gillard.[/R]

The ASX 200 index decreased 3 to 4,141.9 and declined 1.5% in the week and All Ordinaries index fell 3.4 to 4,203.40.

The Australian dollar added 0.2% to US$1.025.

Trading volume decreased to 1.54 billion shares worth $4.1 billion and nine stocks declined for every eight that declined.

Stock Movers

Telstra Corporation Limited decreased 1 cent to $3.14.

Macarthur Coal Limited increased 14 cents to $16.22 after China based Citic Resources agreed to the joint offer from Peabody Energy and ArcelorMittal. The joint bidders also said that they will raise the offer for the company from $16 a share to $16.25 if their stakes in the company increase to 90% by November 11.

BHP Billiton Ltd closed up at $35.70 and Rio Tinto Ltd fell $0.28 to $62.57 on the weak metals and commodities prices in Asian and international markets.

Lynas Corp fell 3 cents to $1.10 as the company works with Malaysian government to win rare earth import license.

Fortescue Metals decreased 6 cents to $4.25 as iron ore prices remain soft in private contracts between Chinese steelmakers and Asian and African suppliers.

Linc Energy fell 6 cents to $2.00 and Leighton Holdings increased 4 cents to $20.56.

Oil Search Limited increased 7 cents to $5.88, Santos Limited rose 5 cents to $12.12 and Woodside Petroleum declined 22 cents to $33.38.

Woodside said third quarter revenues increased 27% on higher commodities prices that made up for lower production.

Cochlear Limited gained $2.54 to $57.98 after the maker of bionic ears increased its dividend to $1.20 a share for the year from $1.05 a share.

Commonwealth Bank of Australia closed down $0.17 to $47.55 and National Australia Bank increased 4 cents to $24.32. ANZ edged up $0.09 to $21.21. Westpac fell $0.03 to $21.50.

David Jones Limited closed up 14 cents to $3.16 and Wesfarmers Limited decreased $0.54 to $31.00.

Woolworths Limited decreased 53 cents to $24.06 and James Hardie Industries SE decreased 15 cents to $5.70. Treasury Wine Estate rose 1 cent to $3.90.

Qantas Airways Ltd closed flat at $1.49 after the company struggles to maintain its regular schedule and Prime Minister Julia Gilard urged national carrier and the unions to resolve the dispute.

The airline officials are expected to meet pilots next week and Gillard said she was “concerned” about the strike and added “get around a table and get this fixed.”