Australian Building Approvals Drop 7.8%; Stocks Inch Lower

Marcus Jacob
02 Apr, 2012
New York City

Australian stocks edged lower after residential building approvals declined 7.8% in February from January but home prices inched higher in large cities.

[R]8:00 PM Sydney – Australian stocks edged lower after residential building approvals declined 7.8% in February from January but home prices inched higher in large cities.[/R]

Australian stocks inched lower after building approvals declined offering yet another evidence of two-speed economy at home.

Residential building approvals declined 7.8% in February to 10,771 units from the downwardly revised 11,688 units in January. The approvals plunged 15.2% from a year ago month.

Separately, a private report indicated home prices increased for the second month in a row in March on the strength in Sydney market.

RP Data-Rismark said home prices in capital cities increased 0.2% in the month following 0.8% rise in February. Home prices in Sydney increased 0.4% in the month.

The ASX 200 index fell 5.90 to 4,329.30 and All Ordinaries index decreased 3.57 to 4,416.40.

In trading, stock turnover was near the yearly average with 2.4 billion shares changing hands worth $4.5 billion. Of the shares traded, 511 increased, 531 decreased and 380 closed unchanged.

Stock Movers

Miners advanced in the session bucking the trend in the general market and BHP Billiton increased 51 cents to $35.12 and Rio Tinto added 79 cents to $66.19.

BHP and its partner Mitsubishi declared ‘force majeure’ at joint ventures located at Bowen Basin in Queensland after a month of heavy rains and strikes last month.

Bass Metals inched up 0.1 cent to 1.70 cents after the miner was said to be in talks to sell its assets to cut heavy debt burden.

Lynas Corporation Limited closed down 1 cent at $1.08 and Iluka Resources soared 49 cents to $18.28.

Newcrest Mining dropped 18 cents to $29.50 and Kingsgate gained 9 cents to $6.49.

Oil Search Limited increased 7 cent to $7.04. Woodside Petroleum increased 55 cents to $35.36 and Santos Limited rose 5 cents to $14.29. Oil Search gained 7 cents to $7.04.

David Jones Limited closed unchanged to $2.41, Harvey Norman Holdings closed down 3 cents to $1.98 and Woolworths declined 34 cent to $25.64. Myer decreased 7 cents to $2.27 and Kathmandu closed up 4 cent at $1.33.

Billabong International Limited increased 3 cents to $2.81.

Westpac Banking Corporation decreased 17 cent to $21.72 and Commonwealth Bank of Australia decreased 15 cents to close at $49.95. Bank of Queensland decreased 12 cents to $7.16.

Macquarie Group dropped 23 cents to $28.85.

Real estate developers closed mixed Westfield Group closed up 2 cents to $8.85 and Stockland was unchanged at $2.94.

Qantas fell 6 cents to $1.73, Virgin Australia decreased 0.01 cents to 45 cents and Flight Centre declined 41 cents to $21.59.

QR National fell 1 cent to $3.72 and the railroad operator increased its stake in a freight rail center near Sydney.