Australian Stocks Ease; News Corp Faces Inquiries

Marcus Jacob
14 Feb, 2012
New York City

Stocks in Sydney trading closed lower on a weakness in resource sector and banking stocks. Tabcorp Holdings plans to raise $200 million in a debt offering. News Corp faces more inquiries after unearthing of evidence that linked James Murdoch to the wider hacking practice.

[R]8:00 PM Sydney – Stocks in Sydney trading closed lower on a weakness in resource sector and banking stocks. Tabcorp Holdings plans to raise $200 million in a debt offering. News Corp faces more inquiries after unearthing of evidence that linked James Murdoch to the wider hacking practice.[/R]

Australian stocks edged lower in the absence of domestic news after a credit opinion firm lowered its views on Italy and Spain. Moody’s also said it may lower UK and France from its highest opinion.

The ASX 200 index decreased 42.3 or 1% to 4,242.8 and All Ordinaries index fell 40.5 or 0.9% to 4,318.4.

Resource sector and banks were on the decline after broader indexes traded lower ahead of Commonwealth Bank second half earnings. Analysts are expecting flat earnings growth at the bank that will match $3.5 billion in earnings in the period a year ago.

National Australia Bank Business Survey indicated business conditions improved in January after two successive rate cuts by the Reserve Bank. The survey showed that profitability declined but employment and trading conditions were unchanged.

Stock Movers

BHP Billiton Ltd fell 49 cents or 1.3% to $36.17 and Rio Tinto Ltd declined $1.15 to $69.28.

Fortescue Metals Group extended gains for the second day by 11 cents to $5.61, Lynas Corporation Limited closed lower 8 cents to $1.27 and Iluka Resources decreased 68 cents to $17.12. Newcrest Mining fell $0.70 to $34.40.

Oil Search Limited decreased 10 cents to $6.50, Santos Limited declined 18 cents at $13.79 and Woodside Petroleum decreased 41 cents to $35.17.

Commonwealth Bank of Australia decreased 33 cents to $49.96 and ANZ decreased 8 cents to $21.69 and Westpac inched lower 25 cents to $20.90.

David Jones Limited decreased 9 cents to $2.41 and Harvey Norman Holdings closed down 9 cent to $1.98. Wesfarmers Limited fell 14 cents to $29.55. James Hardie fell 12 cents to $7.12. Woolworths increased 28 cents to $24.99.

News Corporation gained 19 cents to $18.84 as more evidence emerge in London hacking investigation that ties James Murdoch with the knowledge of the extent of widespread practice across the print operation. Murdoch has consistently denied that the hacking was widespread at the company which has been found to be a “lie and wrong” as body of evidence builds up.

Qantas Airways Ltd fell 4 cents to $1.54, Virgin Australia fell 0.5 cent to 35.5 cents and Flight Centre decreased 33 cents to $20.70.

GWA Group declined 17 cents to $2.31 after the building fixture supplier reported 60% decline in first half profit.

QR National closed down 7 cents to $3.73.