Australian Home Sales Advance, Stocks Rise

Marcus Jacob
29 May, 2012
New York City

Australian markets advanced but near the close struggled on the rising financial contagion worries in the euro zone. April new home sales in Australia surged 6.9% after dropping to the worst level in a decade in March.

[R]8:00 PM Sydney – Australian markets advanced but near the close struggled on the rising financial contagion worries in the euro zone. April new home sales in Australia surged 6.9% in April after dropping to the worst level in a decade in March.[/R]

New home sales soared 6.9% in April after adjusting for seasonality according to the latest survey published by the Housing Industry Association.

The industry survey of 100 largest home builders showed the largest increase in Victoria by 17.2% after the local government promised to end incentive to first time home buyers.

Multi-family home sales across the nation increased 10.3% and sale of single family homes rose at a slower pace. Detached home sales declined 5.9% in South Australia and fell 5.5% in Queensland.

The ASX 200 indexes gained 46.40 or 1.1% to 4,114.40 and All Ordinaries index increased 48.06 or 1.2 to 4,168.22.

In trading, stock turnover increased 1.7 billion shares worth $3.85 billion and 555 shares closed higher, 395 declined and 356 were unchanged.

The Australian dollar traded near the low of the year at 98.58 U.S. cents.

Stock Movers

Suncorp increased 13 cents to $7.81 after the insurer announced new cost cutting and second half margin of 12% in the fiscal year ending in June compared to 10.8% in the previous year.

David Jones Limited unchanged to $2.30, Harvey Norman Holdings closed up 3 cent to $2.0 and Woolworths increased 11 cents to $26.37.

Kathmandu fell 3 cents to $1.14. Billabong International Limited decreased 4 cents to $2.01.

BHP Billiton increased 32 cents to $32.37 and Rio Tinto advanced $1.24 to $58.14.

Lynas Corporation Limited rose 2 cents to $1.08 cents and Iluka Resources closed up 44 cents to $13.43.

Newcrest Mining gained 32 cents to $25.67 and Kingsgate decreased 7 cents to $5.22.

Oil Search Limited gained 12 cents to $6.90 and Santos Limited advanced 32 cents to $12.34 and Orica increased 43 cents to $25.06.

Commonwealth Bank of Australia gained 60 cents to $49.88 and Bank of Queensland increased 29 cents to $6.59. ANZ gained 36 cents to $20.94. National Australia Bank closed up at 16 cents to $23.81 and Westpac Banking Corporation closed up at 28 cents to $20.40.

Stockland closed down at 6 cents to $3.21, Leighton increased 14 cents to $17.71 and Toll Holdings added 9 cents to $4.67.

Qantas added 2 cents to $1.52 and Virgin Australia unchanged to 42 cents and Flight Centre increased 7 cents to $18.21.

QR National gained 9 cents to $3.38.