Australian Markets Edge Lower; Suncorp Estimates Higher Loss

Marcus Jacob
06 Jan, 2012
New York City

Australian stocks edged lower after material prices declined on the rising worries in the euro zone after yields rose in the latest French debt auction. Suncorp declined after it reported higher than estimated natural disaster cost in the six month period to December.

[R]8:00 PM Sydney – Australian stocks edged lower after material prices declined on the rising worries in the euro zone after yields rose in the latest French debt auction. Suncorp declined after it reported higher than estimated natural disaster cost in the six month period to December.[/R]

Australian stocks edged lower on the growing worries in the euro zone and falling commodities prices. The fresh worries drove the euro to a new low in the last six weeks against the dollar and gold, silver and copper traded lower.

The ASX 200 index closed down 34.20 or 0.8% to 4,108.5 and All Ordinaries index decreased 32.1 or 0.8% to 4,164.5. For the week, the ASX 200 index declined 0.8%.

The Australian dollar edged higher and closed at US$1.030.

Tensions in the Middle East were high as the war of words escalated between Iran and the U.S. and crude oil future of the immediate month traded higher and touched $103.20 a barrel in New York trading. Iran has threatened to close Strait of Hormuz as European Union and U.S. prepare to impose sanctions on Iran.

Stock Movers

BHP Billiton Ltd fell $0.58 to $35.24 and Rio Tinto Ltd decreased $0.33 to $62.52.

Fortescue Metals Group fell 7 cents to $4.44, Lynas Corporation Limited closed down 2 cents to $1.04 and Iluka Resources rose 2 cents to $15.55. Newcrest gained 25 cents to $30.75.

Oil Search Limited traded up 2 cents to $6.39, Santos Limited fell 5 cents to $12.23 and Woodside Petroleum decreased $0.08 cents to $31.04.

Commonwealth Bank of Australia decreased 14 cents to $49.51 and National Australia Bank fell 33 cents to $23.40. ANZ edged down 29 cents to $20.45. Westpac inched lower 28 cents to $20.02.

Cochlear fell $1.10 to $60.30.

David Jones Limited closed up 2 cents to $2.44 and Wesfarmers Limited decreased 17 cent to $30.37. Harvey Norman Holdings closed down 1 cent to $1.85.

Woolworths Limited closed down 14 cents to $25.33 and JB Hi-Fi Limited decreased $0.21 to $11.37. Billabong International Ltd fell 1 cent to $1.80 and Kathmandu fell 2 cents to $1.28.

Qantas Airways Ltd closed down 6 cents to $1.46, Virgin Australia closed up 0.5 cent to 30 cents and Flight Centre closed unchanged at $16.80.

Qantas fell on the worries that the company may have to pay as much as $30 million when it returns three leased Boeing 747-400 aircrafts before the end of the year. Qantas has been losing money on the long haul business between Europe and Australia on the rising competition from Middle Eastern nations.

Suncorp declined 28 cents to $8.42 after the general insurer estimated costs from natural hazards for the six months to December to be between $360 million and $420 million.

QBE Insurance Group Limited decreased 3 cents to $13.12 and Insurance Australia Group decreased 7 cents to $2.93.

QR National fell 5 cents to $3.51.