Australian Stocks Ease; Myer Net Drops 20%

Marcus Jacob
15 Mar, 2012
New York City

Australian stocks eased after rallying the past week. Caution prevailed after comments from China suggested that the fast rising nation may need to embrace lower economic growth. Myer, the retail chain reported 20% decline in net income in the first half.

[R]8:00 PM Sydney – Australian stocks eased after rallying the past week. Caution prevailed after comments from China suggested that the fast rising nation may need to embrace lower economic growth. Myer, the retail chain reported 20% decline in net income in the first half.[/R]

Australian stocks eased after rallying in the past week and cautious comments from Beijing also weakened trading sentiment.

Retailer Myer reported 20% decline in net income and issued a cautious outlook on sales as the rising dollar turn customers away to overseas markets.

The ASX 200 index decreased 9.4 to 4,277.80 and All Ordinaries index fell 8.7 to 4,366.91.

In trading, 2.4 billion shares changed hands worth $5.7 billion shares with 590 stocks declining, 435 increasing and 381 closed unchanged.

Stock Movers

BHP Billiton Ltd decreased 43 cents to $35.18 and Rio Tinto Ltd decreased 37 cents to $64.93.

Fortescue Metals Group increased 15 cents to $5.98 after the company said it will sell US$1 billion of bonds to fund its $8 billion expansion plan and may need to tap the U.S. debt market.

Lynas Corporation Limited fell 2 cents to $1.23 and Iluka Resources closed down 29 cents to $16.77.

Gold miners declined after prices dropped 3.4% in New York trading. Newcrest Mining decreased $1.03 to $30.27 and Kingsgate declined 31 cents to $6.58.

Graincorp eased 12 cents to $8.61.

Oil Search Limited decreased 14 cents to $7.00, Santos Limited rose 1 cent at $14.58 and Woodside Petroleum decreased 21 cents to $35.38.

Commonwealth Bank of Australia increased 18 cents to $48.98, Westpac closed up 2 cents to $20.92 and NAB increased 8 cents to $23.94. ANZ fell 2 cents to $22.28.

David Jones Limited rose 3 cents to $2.78 and Harvey Norman Holdings closed up 2 cents to $1.94. Woolworths decreased 7 cents to $25.52.

Myer dropped 8 cents to $2.29 after the retailer said full year fiscal 2012 sales are likely to be flat or decline. Net profit in the first half declined 19.8% to $87.32 million and sales fell 1.7% to $1.7 billion.

Myer said comparable sales in the first half declined 3% and total sales in the period fell 0.4%.

The retailer also declared interim dividend of 10 cents, lower than 11 cents a share in the period a year ago.

Qantas Airways Ltd closed up 2 cents to $1.76 and maintenance work contractor demonstrated outside the Brisbane airport demanding higher wages.

Virgin Australia unchanged to 46.5 cents and Flight Centre decreased 14 cents to $21.68.

QR National closed up 3 cents to $3.98.