Australian Stocks Ease on Weak China Import Growth

Marcus Jacob
10 Apr, 2012
New York City

Australian stocks declined for the third day in a row and on the first day of trading after a long weekend. Resources stocks fell after China reported weaker than expected growth in imports. Businesses reported a slight improvement in business conditions in March.

[R]8:00 PM Sydney – Australian stocks declined for the third day in a row and on the first day of trading after a long weekend. Resources stocks fell after China reported weaker than expected growth in imports. Businesses reported a slight improvement in business conditions in March.[/R]

Australian indexes declined for the third day in a row as investors digested sharply lower growth in Chinese imports data and searched for additional catalyst for global markets.

Commodities declined after China said imports in March month increased 5.3% from a year ago compared to estimates of at least 8%, adding to the worries a day after when the inflation was ahead of expectations.

The ASX 200 index dropped 27.50 to 4,292.30 and All Ordinaries index decreased 28.63 to 4,373.71.

In trading, volume declined to 1.92 billion shares changed hands worth $3.6 billion and 321 stocks closed higher, 681 declined and 393 were unchanged.

A private survey of Australian businesses showed a slight improvement in business conditions in March. The 400 companies survey released by National Australia Bank indicated that business conditions increased by one to 4 and business confidence gained by two to 3 in the month.

The survey offered another proof of Australia’s two speed economies as most businesses in construction, retail and manufacturing struggling but companies in mining, utilities and transportations reporting better environment.

Stock Movers

BHP Billiton decreased 19 cents to $34.25 and Rio Tinto dropped 44 cents to $64.85.

Lynas Corporation Limited closed down 2 cents to $1.03 and Iluka Resources decreased 35 cents to $17.43.

Gold and precious metal miners gained on a day when other basic materials stocks were down after gold closed up $27.33 to $1,651.80 an ounce in Sydney trading. The prices of gold are quoted in the U.S. dollar.

Newcrest Mining gained 75 cents to $28.80 and Kingsgate rose 9 cents to $6.01.

Oil Search Limited declined 12 cents to $6.89. Woodside Petroleum slumped 49 cents to $34.69 and Santos Limited decreased 10 cents to $14.08. Oil Search slipped 12 cents to $6.89.

David Jones Limited fell 1 cent to $2.25, Harvey Norman Holdings closed unchanged to $1.85 and Woolworths decreased 19 cents to $25.51. Myer fell 1 cent to $2.24 and Kathmandu closed down 2 cents at $1.30.

Billabong International Limited inched down 1 cent to $2.85.

Austar United Communications closed higher 4 cents to $1.52 after competition commission approved $1.9 billion bid from Foxtel but not before extracting wider concession.

Westpac Banking Corporation decreased 10 cents to $21.95 and Commonwealth Bank of Australia slipped 7 cents to close at $49.99. Bank of Queensland fell 2 cents to $6.77.

Macquarie Group advanced 13 cents to $28.84 and QBE Insurance Group slumped 1.3% after it issued an optimistic outlook for the year.

Real estate developers closed mixed Westfield Group closed down 9 cents to $8.76 and Stockland decreased 5 cents to $2.94.

Qantas closed down 2 cents to $1.65, Virgin Australia unchanged to 42 cents and Flight Centre soared 16 cents to $21.52. QR National rose 1 cent to $3.63.