Australian Stocks Ease; Earnings Decline at Harvey Norman, Westpac

Marcus Jacob
03 May, 2012
New York City

Australian stocks ended lower after commodities eased in international markets. Westpac said first half net declined 25% on the rising costs of bad debts and passed on only 32 basis points of the 50 basis points rate cut. Harvey Norman reported weak results.

[R]8:00 PM Sydney – Australian stocks ended lower after commodities eased in international markets. Westpac said first half net declined 25% on the rising costs of bad debts and passed on only 32 basis points of the 50 basis points rate cut. Harvey Norman reported weak results.[/R]

Australian markets traded lower on weaker commodities prices in international markets. Markets also noted weak private sector jobs report in the U.S. and upcoming French presidential election this Sunday.

The ASX 200 index edged down 6.90 to 4,429 and All Ordinaries index fell 10.23 to 4,494.53.

In stock trading, turnover decreased to 1.97 billion shares worth $4.59 billion and 424 shares gained, 574 decreased and 385 closed unchanged.

Westpac passed on only 32 basis points of the latest 50 basis points decrease in interest rates and cut down full 50 basis points from its deposit rates.

Stock Movers

News Corp added 1 cent to $19.40 as more investors demand the removal of Rupert Murdoch and James Murdoch from the company.

Harvey Norman reported pre-tax profit declined 25% in the nine months to March as sales declined in the last three months.

David Jones Limited slipped 4 cents to $2.52, Harvey Norman Holdings closed down 3 cents at $2.04 and Woolworths soared 43 cents to $26.85. Myer unchanged to $2.44 and Kathmandu gained 3 cents to $1.35. Billabong International Limited decreased 6 cents to $2.54.

BHP Billiton closed unchanged to $36.25 and Rio Tinto tumbled 76 cents to $65.65.

Lynas Corporation Limited unchanged to $1.09 and Iluka Resources declined 31 cents to $16.40. Newcrest Mining increased 7 cents to $26.67 and Kingsgate decreased 5 cents to $6.16.

Oil Search Limited down 1 cent to $7.39 and Santos Limited slumped 5 cent to $14.11.

Westpac said first half net profit declined 25% to $2.97 billion as bad debt costs rose but the results met the market expectations. Cash profit in the first half increased 1% from a year ago to $3.12 billion. The bank increased interim dividend by 2 cents to 82 cents.

Westpac Banking Corporation gained 22 cents to $22.91 and Commonwealth Bank of Australia closed unchanged to $52.68. Bank of Queensland decreased 6 cents to $7.03. ANZ dropped 16 cents to $23.64. National Australia Bank gained 10 cents to $25.20.

Stockland advanced 4 cents to $3.29.

Qantas down 1 cent to $1.62, Virgin Australia edged up 2.5 cents to 41 cents and Flight Centre rose 3 cents to $20.86.

QR National fell 1 cent to $3.69.