Australian Wholesale Inflation Up 0.3%; Lynas Seeks Financing

Marcus Jacob
23 Jan, 2012
New York City

Australian stocks traded lower after wholesale inflation increased 0.3% in the December quarter. Lynas Corp was halted ahead of a financing deal that will avert cash crisis at the company. BHP won a regulatory approval to expand its port facility in the Pilbara region.

[R]8:00 PM Sydney – Australian stocks traded lower after wholesale inflation increased 0.3% in the December quarter. Lynas Corp was halted ahead of a financing deal that will avert cash crisis at the company. BHP won a regulatory approval to expand its port facility in the Pilbara region.[/R]

Australian stocks edged lower after producer prices increased 0.3% in the December quarter and ahead of the release of the consumer price index on Wednesday.

For the year 2011 the annual wholesale price index increased 2.9% and was within the target range set by the Reserve Bank of Australia between 2% and 3%. However, the wholesale inflation is expected to increase 0.2% a quarter and rise 3.3% in the current year.

Investors also focused on the outcome of a meeting of finance ministers in the euro zone and talks between Greece and international lenders. Greece is demanding as much as 70% loss for private bond holders.

The ASX 200 index fell 14.5 or 0.3% to 4,225.1 and All Ordinaries index declined 15.4 or 0.4% to 4,287.60.

The Australian dollar edged higher 0.3% and closed at US$1.041 and 80.26 euro cents and 67.18 pence.

Stock Movers

BHP Billiton Ltd fell 24 cents to $37.24 and Rio Tinto Ltd increased $0.36 to $67.89.

BHP won a government approval for its Outer Harbor plan at Port Hedland in Pilbara region that it expects to develop in the next eight years at a cost of $20 billion.

Fortescue Metals Group decreased 19 cent to $5, Lynas Corporation Limited was unchanged at $1.28 and Iluka Resources increased $0.46 to $18.62. Newcrest Mining fell 24 cents to $32.20.

Lynas Corp was halted ahead of financing deal that the company is expected to announce. The rare earth processing company is struggling to get its plan operating in Malaysia and is awaiting government approval as environmental protests have delayed the licenses.

Oil Search Limited traded up 2 cents to $6.66, Santos Limited closed up 14 cents at $13.57 and Woodside Petroleum decreased 29 cents to $33.70.

Commonwealth Bank of Australia decreased 9 cents to $49.74 and ANZ decreased 2 cents to $20.87 and Westpac inched lower 22 cents to $20.46. National Australia Bank closed down 3 cents to $23.85.

David Jones Limited increased 4 cents to $2.42 and Wesfarmers Limited increased 3 cents to $30.27. Harvey Norman Holdings closed up 2 cents $2.05.

Woolworths Limited closed down 17 cents to $24.73 and JB Hi-Fi Limited increased 2 cents to $12. Billabong International Ltd closed up 12 cents to $1.99 and Kathmandu closed unchanged at $1.24.

Ansell declined 1 cent to close at $14.96 and the gloves and condom maker selected Koreca Industries to distribute its products in Korea.

Qantas Airways Ltd rose 5 cents to $1.58, Virgin Australia closed unchanged at 30.5 cents and Flight Centre added 37 cents to $19.22.

QR National closed flat at $3.69.