Australian Stocks Fall on Weak Retailers, David Jones Net Drops 20%

Marcus Jacob
21 Mar, 2012
New York City

Australian stocks traded lower for the second day in a row after retailer reported weaker than expected profits and resources stocks fell on cautious views from BHP. David Jones estimated full year net income to fall as much as 40% and Kathmandu first half income declined 43%.

[R]8:00 PM Sydney – Australian stocks traded lower for the second day in a row after retailer reported weaker than expected profits and resources stocks fell on cautious views from BHP. David Jones estimated full year net income to fall as much as 40% and Kathmandu first half income declined 43%.[/R]

The ASX 200 index decreased 20.70 to 4,254.30. All Ordinaries index decreased 18.59 to 4,346.99.

Stock Movers

Resources stocks declined for the second day after BHP said Chinese demand growth for iron ore is flattening.

BHP Billiton Ltd decreased 61 cents to $34.70 and Rio Tinto Ltd decreased 27 cents to $65.34.

Fortescue Metals Group increased 14 cents to $6.06 and said that it may list its magnetite iron ore business in Hong Kong or Shanghai in the next two to three years to finance the expansion.

Lynas Corporation Limited fell 2 cent to $1.14 and Iluka Resources closed up 7 cents to $17.30.

Newcrest Mining decreased 55 cents to $28.77 and Kingsgate rose 4 cents to $6.37.

Oil Search Limited fell 5 cent to $6.92, Santos Limited decreased 13 cents at $14.38 and Woodside Petroleum decreased 42 cents to $34.90.

Commonwealth Bank of Australia decreased 27 cents to $48.63, Westpac closed down 15 cents to $21.05 and NAB decreased 10 cents to $24.10. ANZ decreased 11 cents to $22.42.

Macquarie Group gained 30 cents to $28.27.

David Jones Limited closed down 30 cents at $2.43 after the retailer said first half net profit declined 19.6% from a year ago to $85 million and revenues declined 6.7% to $1.011 billion.

The retailer also said it plans to spend between $70 million and $80 in capital expansion in the current year and open six new stores and increase the total number of stores to 42. The company also estimated full year net profit to fall as much as 40%.

Harvey Norman Holdings closed down 2 cents at $1.90 and Woolworths fell 1 cent to $24.93. Myer declined 2 cents to $2.24.

Kathmandu declined 24 cents or 16% to $1.25 after the retailer reported first half profit decline of 43%.

Fashion apparel and accessories retailer Oroton declined 32 cents to $8.70 despite first half net increased 4%.

Real estate developers edged lower and Westfield Group decreased 6 cents to $8.69 and Stockland fell 1 cent to $3.14.

Qantas Airways Ltd closed up 2 cent at $1.78, Virgin Australia rose 0.05 at 46.5 cents and Flight Centre decreased 67 cents to $20.96.