Australian Stocks, Dollar Decline; Qantas Talks Collapse

Marcus Jacob
21 Nov, 2011
New York City

Australian stocks edged lower after international markets declined. Japan reported declining exports to Japan and China. Qantas and unions fail to agree ahead of today

[R]6:00 PM Sydney – Australian stocks edged lower after international markets declined. Japan reported declining exports to Japan and China. Qantas and unions fail to agree ahead of today’s deadline and both sides will look for an industrial tribunal ruling.[/R]

Australian stocks looked at the international markets in the absence of local news and trading volume dipped by one third of the weekly average.

Stocks were on the decline after Japan reported a decline in exports to China and the U.S. and also swung to trade deficit. Market sentiment was also weak after Chinese Vice Premier Wang Qishan said in an interview that the global economy could enter in a long-term recession.

The ASX 200 index fell 14.00 or 0.3% to 4,163.02 and All Ordinaries index decreased 0.3% or 13.1 to 4,233.60.

The Australian dollar dropped 1 cent to US$0.988.

Stock Movers

BHP Billiton Ltd closed down $0.23 to $35.90 and Rio Tinto Ltd decreased $1.15 to $65.90. Newcrest Mining decreased 60 cents to $35.25.

Fortescue Metals Group increased 5 cents to $4.90, Lynas Corporation Limited decreased 3 cents to $1.16 and Iluka Resources fell $0.89 to $14.85.

Monadelphous added 20 cents to $19.50 and last week the company said it won construction contracts of $140 million in Papua New Guinea.

BlueScope Steel declined 4 cents to 61 cents and the rival OneSteel said conditions for Australian steel makers will remain challenging. OneSteel declined 3.5 cents to 93 cents.

Uranium miner Paladin Energy decreased 1 cent to $1.49 and Peninsula Energy Ltd fell 0.1 cent to 4.2 cents. Extract Resources decreased 11 cents to $7.56.

Oil Search Limited decreased 9 cents to $6.12, Santos Limited fell 12 cents to $12.76 and Woodside Petroleum closed up 38 cents to $35.33.

Commonwealth Bank of Australia closed down 18 cents to $47.55 and National Australia Bank decreased 26 cents to $23.20. ANZ edged down 31 cents to $19.75. Westpac rose 5 cents to $20.42.

David Jones Limited closed down 11 cent to $3.06 and Wesfarmers Limited closed up 3 cent to $32.12. Harvey Norman decreased 1 cent to $2.07.

Woolworths Limited closed up 5 cents to $24.65 and James Hardie Industries SE increased 10 cents to $6.60.

Ramsay Health Care Limited increased 6 cents to $18.93.

Qantas Airways Ltd closed down 2 cents to $1.64, Virgin Blue closed unchanged at 37.5 cents but Flight Centre declined 53 cents to $19.32.

Qantas and two unions representing long haul pilots and baggage handlers suspended their talks this afternoon, ahead of the deadline today.

Two sides were far apart after the company requested 20% increase in productivity from pilots and pushed to use more contractors to handle baggage. Unions also demanded job guarantees and keeping most of the jobs in Australia.

Fair Works Australia, the industrial tribunal will make its binding ruling as early as this month.