Australian Stocks Weak; Bank Of Queensland to Raise $450 Million

Marcus Jacob
26 Mar, 2012
New York City

Australian markets traded lower after resources linked stocks, banks and retailers closed down. Bank of Queensland was halted after it estimated $91 million in first losses and said it plans to raise $450 million in an offering.

[R]8:00 PM Sydney – Australian markets traded lower after resources linked stocks, banks and retailers closed down. Bank of Queensland was halted after it estimated $91 million in first losses and said it plans to raise $450 million in an offering.[/R]

Australian stocks edged lower as investors stayed on the sidelines on the growing worries that the recent 5-month rally may have extended stocks beyond fundamentals. Banks, resources linked stocks and retailers led the decliners.

The ASX 200 index fell 7.60 to 4,262.80 and All Ordinaries index fell 5.48 to 4,355.24.

The Australia dollar declined to $1.036 after the release of manufacturing data from China and business sentiment in the euro zone forecasted a recession in the current quarter.

Stock Movers


BHP Billiton Ltd decreased 21 cents to $34.19 and Rio Tinto Ltd rose 5 cents to $63.75. Fortescue Metals Group fell 8 cents to $5.92.

Lynas Corporation Limited closed down 1 cent at $1.08 and Iluka Resources increased 19 cents to $17.09.

Newcrest Mining decreased 17 cents to $28.83 and Kingsgate gained 16 cents to $6.45.

Oil Search Limited increased 7 cent to $6.96, Santos Limited fell 5 cents to $14.23 and Woodside Petroleum decreased 24 cents to $35.13.

Commonwealth Bank of Australia increased 32 cents to $49.48, Westpac closed up 6 cents to $21.43 and NAB rose 6 cents to $24.41. ANZ increased 7 cents to $22.81.

Bank of Queensland was halted at $7.30 after the bank estimated first half losses of $91 million and loan impairments and said it plans to raise $450 million. Loans impairments in the period increased to $328 million from $134 million a year ago period.

The bank plans to offer 74 million new shares to raise the capital, nearly one third of all outstanding shares.

Macquarie Group decreased 19 cents to $28.58.

David Jones Limited closed down 4 cents at $2.33, Harvey Norman Holdings closed down 2 cents at $1.93 and Woolworths decreased 5 cent to $24.86. Myer decreased 11 cents to $2.17 and Kathmandu closed up 1 cent at $1.25.

Real estate developers edged lower and Westfield Group closed down 2 cents to $8.72 and Stockland decreased 5 cents to $3.14.

Qantas Airways Ltd closed up 3 cents to $1.76, Virgin Australia fell 0.05 at 46 cents and Flight Centre increased 25 cents to $21.49.

QR National fell 4 cents to $3.73.