Australian Stocks Ease; Leighton Cuts Profit Outlook

Marcus Jacob
29 Mar, 2012
New York City

Australian stocks eased as investors shifted focus to international markets and the dollar eased. Leighton Holdings cuts its annual profit outlook on cost overruns at two key projects in Australia.

[R]8:00 PM Sydney – Australian stocks eased as investors shifted focus to international markets and the dollar eased. Leighton Holdings cuts its annual profit outlook on cost overruns at two key projects in Australia.[/R]

Australian indexes traded lower from the highs in the year as investors shifted focus to global economic growth worries. Investors also speculated that the Reserve Bank of Australia may cut rates at its next meeting in a few weeks.

The ASX 200 index fell 5.60 to 4,337.90 and All Ordinaries index decreased 9.43 to 4,422.04.

The Australia dollar declined to $1.035.

Leighton Cuts Profit Outlook

Leighton Holdings plunged as much as 9% after the construction company estimated higher costs at two key projects. The company said its 2012 profit is expected to range between $400 million and $450 million from its previous outlook of $600 million and $650 million.

The infrastructure contractor estimated net profit in the first half ending in June between $100 million and $150 million. The company also reaffirmed that its construction pipeline of orders adds up to $44.5 billion.

Stock Movers

Nufarm rose 6 cents to $4.74 and a day ago the fertilizer maker said net quadrupled to $18 million but fell short of expectations.

Leighton Holdings dropped $1.59 to $22.16 after the infrastructure contractor lowered its net income outlook by one third on additional losses from Victoria desalination plant and Brisbane Airport Link projects.

Transurban fell 5 cents to $5.62 after the toll road operator reiterated its full year dividend and earnings outlook but cited difficult business conditions.

BHP Billiton Ltd decreased 36 cents to $34.25 and Rio Tinto Ltd decreased 17 cents to $64.36. Fortescue Metals Group decreased 13 cents to $5.85.

Lynas Corporation Limited closed down 4 cents to $1.07 and Iluka Resources increased 12 cents to $17.63.

Newcrest Mining gained 14 cents to $30.23 and Kingsgate decreased 13 cents to $6.32.

Oil Search Limited decreased 15 cent to $6.91, Santos Limited fell 4 cents to $14.41 and Woodside Petroleum dropped 47 cents to $35.30.

Commonwealth Bank of Australia increased 7 cents to $50.45, Westpac closed down 6 cents to $21.88 and NAB increased 5 cents to $24.99. ANZ rose 1 cent to $23.46.

Bank of Queensland decreased 41 cents to $7.24 and Macquarie Group declined 48 cents to $29.44.

David Jones Limited closed up 3 cents to $2.43, Harvey Norman Holdings added 1 cent at $2.01 and Woolworths advanced 23 cent to $25.64. Myer rose 1 cent to $2.29 and Kathmandu closed up 1 cent at $1.25.

Real estate developers closed mixed Westfield Group closed up 6 cents to $8.92 and Stockland was unchanged at $3.00.

Qantas Airways Ltd closed up 2 cent to $1.82, Virgin Australia rose 0.01 cents at 46.5 cents and Flight Centre decreased 19 cents to $21.85.

QR National fell 3 cents to $3.64.