Australian Index Drops 1.3%, Myer Falls 8%

Marcus Jacob
23 May, 2012
New York City

Australian stocks fell on the rising worries in the euro zone and faltering growth of imports from China. Australian dollar declined to a new low for the year. Myer slumped 8% after the retailer reported weaker than expected sales and earnings and lowered its annual outlook.

[R]8:00 PM Sydney – Australian stocks fell on the rising worries in the euro zone and faltering growth of imports from China. Australian dollar declined to a new low for the year. Myer slumped 8% after the retailer reported weaker than expected sales and earnings and lowered its annual outlook.[/R]

Australian stocks closed down on the rising global economic worries rooted in the euro zone political and economic turmoil.

Australian stocks declined on the worries that the growth of Chinese imports of commodities may fall as the nation’s exports fall to the euro zone.

The ASX 200 index decreased 54.0 or 1.3% to 4,067 and All Ordinaries index increased 54.66 or 1.3% to 4,118.80.

In stock trading, turnover decreased to 1.54 billion shares worth $4.3 billion and 321 shares gained, 636 decreased and 322 closed unchanged.

The Australian dollar traded near the low of the year at 97.45 U.S. cents.

Stock Movers

David Jones Limited fell 3 cents to $2.17, Harvey Norman Holdings closed down 1 cent to $1.94 and Woolworths decreased 16 cents to $26.72.

David Jones dropped to the low last seen in March 2009 after Myer reported weak results.

Myer slumped 17 cents or 8% to $2 after the retailer said third quarter ending in April sales declined 0.9% to $651.1 million and comparable sales in the quarter declined 2.1% from a year ago period.

The retailer also estimated full year profit to decline 15% from a year ago profit of $162.7 million.

Kathmandu unchanged to $1.22. Billabong International Limited fell 4 cents to $2.11.

BHP Billiton declined 39 cents to $31.93 and Rio Tinto closed down 61 cents to $56.28.

Syrah Resources soared 95% to $1.82 after the Mozambique focused graphite miner after a single drilling at its Balama project showed at least 285 meters of graphite.

Lynas Corporation Limited fell 5.5 cents to 87 cents and Iluka Resources slides 46 cents to $13.25. Newcrest Mining slipped 50 cents to $24.74 and Kingsgate decreased 17 cents to $5.0.

Oil Search Limited fell 4 cents to $6.83 and Santos Limited slumped 23 cents to $12.08. Orica decreased 6 cents to $25.54.

Commonwealth Bank of Australia declined 48 cents to $49.43 and Bank of Queensland slipped 13 cents to $6.36. ANZ shrank 41 cents to $20.65. National Australia Bank decreased 22 cents to $23.69 and Westpac Banking Corporation slumped 28 cents to $20.47.

Brambles dropped 3% to $6.84 and closed at a two-month low after the company has not found a buyer for its information management unit.

Leighton fell 2.1% after the construction company reaffirmed earnings for the full year between $400 million and $450 million.

Stockland closed up at 1 cent to $3.20, Leighton declined 39 cents to $17.55 and Toll Holdings decreased 9 cents to $4.36.

Qantas unchanged to $1.47, Virgin Australia closed unchanged at 42 cents and Flight Centre slumped 31 cents to $18.39.

QR National slipped 10 cent to $3.32.