Australian Indexes Extend Gains; Woolworths Struggles

Marcus Jacob
20 Apr, 2012
New York City

Australian stocks gained 0.1% to close at a new 8-month high and for the week jumped 1% as world finance ministers and bankers gather in Washington to discuss the euro zone crisis and faltering global economic growth. Woolworths reported weaker than expected quarterly sales results.

[R]8:00 PM Sydney – Australian stocks gained 0.1% and for the week jumped 1% as world finance ministers and bankers gather in Washington to discuss the euro zone crisis and faltering global economic growth. Woolworths reported weaker than expected quarterly sales results.[/R]

Australian stocks advanced and closed to an 8-month high following the international markets sentiment but market indexes trimmed gains in the afternoon ahead of Spanish and French bond offerings.

The ASX 200 index edged up 3.80 to 4,366.50 and All Ordinaries index rose 3.10 to 4,444.42. For the week, the ASX 200 index gained 1%.

Woolworths said same store food and liquor sales were flat in the third quarter and total sales including Big W gained 3.8% to $14.07 billion. Quarterly sales at Big W declined 0.9% and electronics chain Dick Smith fell 1.7%.

The retailer left its fiscal year to June net income forecast between 2% and 6% as its competitor Coles ramps up investment in Coles and lower prices.

Stock Movers

Pharmaxis soared 6% to $1.30 after the biotech company won an approval from European regulators to market its cystic fibrosis drug Bronchitol. The stock has been rising since last October after the company successfully reversed earlier negative ruling in October.

BHP Billiton unchanged to $35.50 and Rio Tinto rose 3 cents to $66.63 after the iron miner blamed weather for its recent production woes.

Lynas Corporation Limited closed down 2 cents to $1.12 and Iluka Resources fell 7 cents to $17.45.

Newcrest Mining decreased 11 cents to $28.05 and Kingsgate gained 19 cents to $6.41.

Oil Search Limited closed up 40 cents at $7.39. Woodside Petroleum edged up a cent to $35.03 and Santos Limited increased 5 cents to $14.09.

Woolworths stock was under pressure after it reported weakest same store sales growth in food and liquor in the third quarter in a decade. Total sales were flat in the quarter.

David Jones Limited fell 3 cents to $2.46, Harvey Norman Holdings closed unchanged at $2.00 and Woolworths increased 3 cents to $25.88. Myer added 1 cent to $2.35 and Kathmandu closed down 3 cents at $1.33.

Billabong International Limited decreased 7 cents to $2.76.

Westpac Banking Corporation increased 8 cents to $22.10 and Commonwealth Bank of Australia advanced 16 cents to $50.94. Bank of Queensland slipped 6 cents to $7.12. ANZ soared 15 cents to $23.45 and Macquarie Group dropped 35 cents to $28.92.

Stockland added 1 cent to $3.06.

Qantas unchanged to $1.65, Virgin Australia edged down 0.05 cents to 41 cents and Flight Centre fell 1 cent to $21.45.

QR National gained 3 cents to $3.67.