Australian Stocks Look Down; Home Loan Approvals Decline

Marcus Jacob
11 Apr, 2012
New York City

Australian stocks drifted lower for the fourth day in a row as investors focused on the euro zone worries and coal prices continue to drift lower. BHP Billiton announced investment plan of $708 million for its Gulf of Mexico project in partnership with Chevron.

[R]8:00 PM Sydney – Australian stocks drifted lower for the fourth day in a row as investors focused on the euro zone worries and coal prices continue to drift lower. BHP Billiton announced investment plan of $708 million for its Gulf of Mexico project in partnership with Chevron.[/R]

Australian indexes declined for the fourth day in a row as investors reacted to weak markets in the U.S. and Europe and the second monthly decline in home loan approval.

Home loans approvals declined 2.5% in February, second monthly decline in a row according to the latest data from the Australian Bureau of Statistics.

The ASX 200 index dropped 46.20 to 4,246.10 and All Ordinaries index decreased 46.38 to 4,327.32.

The dollar was relatively firm and traded at $1.026 on weak commodities and growing speculation that interest rate may be cut at the next meeting in three weeks.

Stock Movers

BHP Billiton dropped 66 cents to $33.59 and Rio Tinto declined $1.33 to $63.52.

BHP Billiton said it will close its coal mine it operates in a joint venture with Mitsubishi in Queensland ahead of a planned strike tomorrow. The recent collapse in coking coal prices have fallen more than 30% to $200 a ton and rising operating costs and rolling work stoppages in the last one year contributed to the closure decision.

BHP also said it will spend as much as $700 million on oil exploration project known as Mad Dog in joint venture with Chevron.

Lynas Corporation Limited closed down 2 cents to $1.00 and Iluka Resources decreased 16 cents to $17.27.

Newcrest Mining gained 6 cents to $28.86 and Kingsgate unchanged to $6.01.

Oil Search Limited rose 2 cents to $6.91. Woodside Petroleum slumped 65 cents to $34.04 and Santos Limited decreased 26 cents to $13.82. Oil Search rose 2 cents to $6.91.

David Jones Limited fell 1 cent to $2.24, Harvey Norman Holdings closed gained 2 cents to $1.87 and Woolworths fell 1 cent to $25.50. Myer increased 3 cent to $2.27 and Kathmandu closed down 1 cent at $1.29.

Billabong International Limited inched down 3 cent to $2.82.

Westpac Banking Corporation decreased 5 cents to $21.90 and Commonwealth Bank of Australia slipped 39 cents to close at $49.60. Bank of Queensland fell 2 cents to $6.75.

Macquarie Group tumbled 93 cents to $27.91 and QBE Insurance Group dropped 3.3% after it issued an optimistic outlook for the year.

Real estate developers closed mixed Westfield Group unchanged to $8.76 and Stockland decreased 2 cents to $2.92.

Qantas closed down 3 cents to $1.62, Virgin Australia unchanged to 42 cents and Flight Centre declined 37 cents to $21.15.

QR National slipped 6 cents to $3.57.