Autstralian Indexes Up 5% in January; Woolworths Sales Rise

Marcus Jacob
31 Jan, 2012
New York City

Australian stocks edged lower today but surged in the month on the optimism that the euro zone will succeed in containing its debt crisis. For the month, the benchmark index added 5.1%. Woolworths comparable sales in December increased 4.1% and decided to sell its electronics retailer Dick Smith.

[R]8:00 PM Sydney – Australian stocks edged lower today but surged in the month on the optimism that the euro zone will succeed in containing its debt crisis. For the month, the benchmark index added 5.1%. Woolworths comparable sales in December increased 4.1% and decided to put its electronics retailer Dick Smith on the block.[/R]

Australian stocks edged lower but for the month registered strong gains. Investors were cautiously optimistic after the European leaders agreed to a new fiscal compact and accelerated the setting up of a rescue fund.

Of the 27 nations in the European Union, only UK and Czech Republic dissented as the euro zone nations marched forward with the greater fiscal integration.

The ASX 200 index decreased 10 or 0.2% to 4,262.7 and All Ordinaries index fell 8.7 to 4,235.70. For the month, ASX 200 index increased 5.1%.

The Australian dollar edged up above $1.06.

In trading, turnover declined to 1.48 million shares worth $3.43 billion and of the shares traded 433 increased, 510 decreased and 421 closed unchanged.

Stock Movers

BHP Billiton Ltd fell 19 cents to $37.48 and Rio Tinto Ltd closed up 16 cents to $69.16.

Fortescue Metals Group increased 2 cents to $5.05, Lynas Corporation Limited closed higher 1.5 cents at $1.325 and Iluka Resources decreased $0.56 to $18.32. Newcrest Mining fell 60 cents to $33.72.

Telstra Corporation Limited increased 2 cents to $3.33 after the company said it will eliminate 200 jobs and transfer administrative functions offshore.

Oil Search Limited traded up 9 cents to $6.60, Santos Limited closed down 7 cents at $13.46 and Woodside Petroleum decreased 15 cents to $34.21.

Origin Energy Limited declined 39 cents to $13.76 after the company reported first half sales increased 5% to $198 million on higher prices but production and sales volume declined.

Commonwealth Bank of Australia decreased 38 cents to $50.66 and ANZ declined 6 cents to $21.41 and Westpac inched higher 5 cents to $21.15. National Australia Bank fell 6 cents to $23.85.

David Jones Limited increased 14 cents to $2.59 and Wesfarmers Limited increased 13 cents to $30.30. Harvey Norman Holdings closed up 1 cent $2.06.

Woolworths Limited closed up 34 cents to $24.79 and JB Hi-Fi Limited increased 78 cents to $12.60. Billabong International Ltd closed down 1 cent to $1.88 and Kathmandu closed up 7 cents to $1.27.

Woolworths reported comparable food and liquor sales increased 1.1% and overall sales rose 4.1% in December. The retailer also said it is considering several unsolicited offers for its consumer electronics retailer Dick Smith and instead of focus on selling electronics goods online and through its chain Big W.

Gunns Limited surged 14% or 1.5 cents to 12 cents after the Tasmania based forestry company said it won debt extension for ten more months.

Qantas Airways Ltd declined 2 cents to $1.58, Virgin Australia closed up 0.5 cents to 32 cents and Flight Centre decreased 12 cents to $19.30.

QR National closed up 4 cents at $3.71.