Australian Miners Down on Euro Zone Worries

Marcus Jacob
15 May, 2012
New York City

Australian stocks eased on the growing confirmation that the euro zone is sliding into a recession and Greece is likely to face another parliamentary election as early as next month. Resources linked stocks declined and gold and energy stocks led the losers.

[R]8:00 PM Sydney – Australian stocks eased on the growing confirmation that the euro zone is sliding into a recession and Greece is likely to face another parliamentary election as early as next month. Resources linked stocks declined and gold and energy stocks led the losers.[/R]

Stocks in Sydney trading declined on the rising worries in the euro zone as Greece drifts to another parliamentary election next month and the latest growth in Germany failed to temper weakness in the euro zone.

Investors paid a little attention to the latest minutes of meeting by the Reserve Bank of Australia. The rate setting committee decided to lower the rate by 50 basis points after the fall in inflation and decline in economic activities and the latest rate movements by commercial banks.

The ASX 200 index slipped 30.70 to 4,266.30 and All Ordinaries index decreased 35.60 to 4,316.27.

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 to US$1.013 and traded near a four-month low.

Stock Movers

David Jones Limited fell 1 cent to $2.36, Harvey Norman Holdings closed up at 2 cents to $2.04 and Woolworths advanced 24 cents to $27.21.

Myer inched down 1 cent to $2.31 and Kathmandu down 2 cents to $1.27. Billabong International Limited decreased 9 cents to $2.21.

Mining and resources linked companies traded sharply lower after material prices fell on the worries of a global slowdown and the euro zone economic weakness may be deeper than estimated.

BHP Billiton shrank 60 cents to $33.86 and Rio Tinto plunged 69 cents to $60.31.

Lynas Corporation Limited fell 5 cents to 98.5 cents and Iluka Resources slumped 34 cents or 2.5% to $13.35. Newcrest Mining declined 78 cents to $24.87 and Kingsgate decreased 20 cents to $5.43.

Oil Search Limited slides 14 cents to $6.83 and Santos Limited slumped 14 cents to $12.55. Orica declined 10 cents to $26.75.

Coca-Cola Amatil increased 14 cents to $12.87 after the beverage bottler forecasted a 4% to 5% rise in its first half profit.

Westpac Banking Corporation closed unchanged at $22.86 and Commonwealth Bank of Australia slipped 14 cents to $52.66. Bank of Queensland decreased 12 cents to $6.64. ANZ slumped 9 cents to $22.11. National Australia Bank slides 13 cents at $24.67.

Stockland rose 3 cents to $3.32 and Leighton declined 24 cents to $18.54.

Qantas unchanged to $1.52, Virgin Australia edged down 5 cents to 43 cents and Flight Centre tumbled 57 cents to $19.13.

Pacific Brands declined 3.5 cents to 58.5 cents after the company confirmed that it does not expect a takeover offer in the near future.

QR National fell 2 cents to $3.44.