Australian Indexes Suffer Largest Weekly Loss in Seven Months

Marcus Jacob
11 May, 2012
New York City

Australian stocks closed lower and suffered the largest weekly loss in seven months. China reported slowing but still healthy industrial production, retail sales and a steady inflation. Australian importers curb the purchase of online apparel by Australians on overseas websites.

[R]8:00 PM Sydney – Australian stocks closed lower and suffered the largest weekly loss in seven months. China reported slowing but still healthy industrial production, retail sales and a steady inflation. Australian importers curb the purchase of online apparel by Australians on overseas websites.[/R]

Australian stocks edged lower and lost the most in a week of trading in the last seven months.

After the close, the European Commission lowered economic outlook for the euro zone and said Spain’s deficit is likely to exceed its target and hover above 6% for this and next year and euro zone economy is expected to shrink 0.3% in the year.

China reported a raft of economic data on inflation, retail sales and industrial production all highlighting a slow decline in economic growth.

China''s industrial production growth slowed to 9.3% from a year earlier in April, the latest data from the National Bureau of Statistics showed.

Inflation eased to 3.4% in April from 3.6% in March and retail sales increased 14.1% from a year ago in April, slower than the 15.2% rise in March.

The ASX 200 index edged down 10.50 to 4,285.10 and All Ordinaries index fell 11.16 to 4,342.69. For the week, the ASX 200 decreased 2.5% and suffered the largest weekly loss in seven months.

In stock trading, turnover decreased to 1.8 billion shares worth $4 billion and 353 shares gained, 631 decreased and 409 closed unchanged.

The Australian dollar drifted near parity to US$1.002 and traded at the low since December 21.

Stock Movers

Retailers were in focus after importers and international apparel brands agreed to curb the purchase of designer goods online from overseas sites by Australians. The move widely unpopular with consumers is likely to be ineffective in preventing the purchases.

David Jones Limited unchanged to $2.36, Harvey Norman Holdings closed unchanged to $2.00 and Woolworths increased 24 cents to $26.79.

Myer added 2 cents to $2.28 and Kathmandu unchanged to $1.26. Billabong International Limited fell 4 cents to $2.26.

Mining and resources linked companies traded sharply lower after material prices fell on the worries of a global slowdown.

BHP Billiton slides 25 cents to $34.37 and Rio Tinto shrink 87 cents to $61.07.

Lynas Corporation Limited unchanged to 97 cents and Iluka Resources dropped 24 cents or 1.7% to $13.36. Newcrest Mining advanced 62 cents to $25.75 and Kingsgate slipped 6 cents to $5.63.

Oil Search Limited unchanged to $7 and Santos Limited slumped 7 cents to $12.86.

Orica decreased 9 cent to $26.83 after the explosives maker said a chemical leak was responsible for a 4% decline in its first half net income.

Westpac Banking Corporation closed down 18 cents at $22.72 and Commonwealth Bank of Australia fell 10 cents to $51.80. Bank of Queensland dropped 13 cents to $6.76. ANZ slipped 11 cent to $22.04. National Australia Bank edged down 2 cents at $24.55.

Stockland increased 6 cents to $3.24 and Leighton declined 51 cents to $18.84 after the construction firm said the completion date for the toll road linking Brisbane Airport may be delayed by two more days.

Qantas unchanged to $1.51, Virgin Australia inched up 5 cents to 42 cents and Flight Centre gained 13 cents to $19.62.

QR National fell 4 cents to $3.50.