News Ltd Shows No Hacking Incidence; BHP Plans $4.5 Billion Acquistions

Marcus Jacob
14 Nov, 2011
New York City

Australian stocks gained and lending in September declined 6.2% in September. News Ltd said its inquiry did not find any privacy law violations and systemic hacking as it was discovered in its UK operation after denying for 3 years. BHP Billiton plans to spend $4.5 billion in more U.S. acquisitions.

[R]6:00 PM Sydney – Australian stocks closed higher and lending in September declined 6.2% in September. News Ltd said its internal inquiry did not find any privacy law violations and systemic hacking as it was discovered in its UK operation after denying for three years. BHP Billiton plans to spend $4.5 billion in more shale gas acquisitions in the U.S.[/R]

Australian lending and finance lease commitments declined 6.2% in September according to the latest data from the Australian Bureau of Statistics.

Mortgage lending increased 0.6% and personal finance loans declined 2.5%. Commercial financing loans plunged 9.9% in the month. The monthly data are volatile by the sharp plunge in personal and commercial loans indicated the lender anxieties in the face of growing Greek debt contagion in the euro zone.

The ASX 200 index rose 8.10 or 0.2% to 4,304.60 and All Ordinaries index increased 0.2% or 10.5 to 4,369.10.

The Australian dollar eased to US$1.022.

Markets in Shanghai increased 1.9%, in Tokyo gained 1.1%, in Hong Kong rose 1.9% and in Mumbai lost 0.4%.

Stock Movers

News Corp edged up 8 cents to $16.66 after the company appointed review committee said it found no evidence of systemic phone hacking and privacy violation in Australia.

The disgraced media company appointed a panel after denying for more than three years in London that its UK operations have violated any privacy laws which later proved to be incorrect. The practice was widespread and existed at more than one publication and was supported by upper management.

For years, News Corp denied the allegations in the UK until an article in the UK based Guardian highlighted a number of instances of phone hacking that were unearthed in a court case.

In a UK parliament inquiry hearing, founder and chairman Rupert Murdoch said that the incidences were “isolated” which were proven to be wrong when London Metropolitan Police discover more instances of systemic hacking at another publication controlled by the company.

BHP Billiton Ltd closed down $0.30 to $37.50 and Rio Tinto Ltd decreased $0.77 to $68.62. Newcrest Mining increased 31 cents to $37.21.

BHP’s petroleum division chief executive J Michael Yeager said today that the company plans to spend about US$4.5 billion in the current financial year after spending US$20 billion to expand into onshore shale gas extraction.

Fortescue Metals Group increased 5 cents to $4.87, Lynas Corporation Limited closed up 2 cents to $1.23 and Iluka Resources fell 2 cents to $17.50. Kingsgate Consolidated increased 16 cents to $6.89.

Paladin Energy increased 12 cents to $1.61 after the Uranium miner reported higher than expected loss on one-time charges linked to its mines in Malawi. The company said net loss in the quarter to September increased to US$123.4 million from US$3.5 million a year ago quarter.

The miner also said it expects production at its Kayelekera plant is expected to reach target rate of 90% capacity as planned, lifting the stock price.

In the quarter the company received on average US$51 per pound compared to US$55.44 a pound in the previous quarter.

Oil Search Limited decreased 2 cents to $6.38, Santos Limited fell 12 cents to $13.44 and Woodside Petroleum gained 32 cents to $36.60.

DuluxGroup Ltd increased 6 cents to $2.75 after the paint maker said full-year profit increased 52% and said current fiscal year net is expected to be higher.

Incitec Pivot Ltd decreased 5 cents to $3.47 after the fertilizer maker said it plans to start up a new ammonium nitrate plant at Moranbah in Queensland.

Brambles added 13 cents to $7.02 and Cochlear Limited added $0.21 to $54.70.

Commonwealth Bank of Australia closed up $0.27 to $49.86 and National Australia Bank decreased $0.02 to $24.56. ANZ edged down $0.04 to $20.66. Westpac added 1 cent to $21.05.

David Jones Limited closed up 1 cent to $3.29 and Wesfarmers Limited closed down 1 cent at $32.99. Harvey Norman decreased 4 cents to $2.17.

Woolworths Limited decreased 7 cent to $24.76 and James Hardie Industries SE increased 10 cents to $6.12.

Qantas Airways Ltd closed up 3 cent at $1.65, Virgin Blue closed up 1 cent 39 cents but Flight Centre rose 22 cents to $19.72.

Qantas chief executive Alan Joyce said he is hopeful that the company will reach contract agreement with workers before the next Monday’s deadline set by the labor tribunal.

QR National Ltd increased 7 cents to $3.51 and the rail operator said it signed a deal with Wesfarmers to haul up to 1.5 million tons of coal from its mine in Curragh to the nearby port.

Stockland declined 2 cents to $3.29 after the property developer said it sold its Melbourne office tower Riverside Plaza for $201.5 million.