Retail Sales Decline in Australia Drag Dollar

Marcus Jacob
30 May, 2012
New York City

Australian stocks closed lower on international worries after Chinese press agency confirmed that the government is not planning additional stimulus. The dollar fell after April retail sales declined. Resource stocks were volatile after weak commodities prices as the euro fell to a 2-year low.

[R]8:00 PM Sydney – Australian stocks closed lower on international worries after Chinese press agency confirmed that the government is not planning additional stimulus. The dollar fell after April retail sales declined. Resource and banking sector stocks were volatile after weak commodities prices as the euro fell to a two-year low.[/R]

Australian stocks were in retreat after retail sales in April fell and international worries in the euro zone overwhelmed market sentiment. Chinese press agency also said that the government is not planning to release more stimulus measures as bank lending flattens.

Australian retail sales declined 0.2% in April according to the latest statistics released by the statistics agency.

Sales declined for the first time this year and seasonally adjusted retail sales fell to $21.256 billion. March retail sales were revised 1.1% higher.

The ASX 200 indexes decreased 20.20 to 4,094.20 and All Ordinaries index slides 19.53 to 4,148.69.

In trading, stock turnover decreased 1.49 billion shares worth $3.56 billion and 416 shares closing higher, 524 declining and 354 remained unchanged.

The Australian dollar traded near the low of the year at 97.76 U.S. cents after retail sales were estimated to decline for the first time this year.

Stock Movers

Wesfarmers fell 6 cents to $28.95 after the conglomerate said it plans to increase the size of its Coles supermarkets as the rival Woolworths steps up the pressure.

David Jones Limited slides 5 cents to $2.25, Harvey Norman Holdings closed up 1 cent to $2.01 and Woolworths decreased 18 cents to $26.19.

Kathmandu unchanged to $1.14. Billabong International Limited fell 3 cents to $1.98.

BHP Billiton slumped 20 cents to $32.17 and Rio Tinto dropped 79 cents to $57.35.

Lynas Corporation Limited down 2 cents to $1.05 cents and Iluka Resources closed up 5 cents to $13.48. Newcrest Mining declined 60 cents to $25.07 and Kingsgate decreased 12 cents to $5.10.

Oil Search Limited edged down 1 cent to $6.89 and Santos Limited shrank 16 cents to $12.18 and Orica slumped 32 cents to $24.74.

Commonwealth Bank of Australia slipped 14 cents to $49.74 and Bank of Queensland increased 10 cents to $6.69. ANZ added 3 cents to $20.97. National Australia Bank rose 1 cent to $23.82 and Westpac Banking Corporation closed down at 13 cents to $20.42.

Stockland closed unchanged to $3.21, Leighton gained 15 cents to $17.86 and Toll Holdings slides 5 cents to $4.62.

Qantas fell 3 cents to $1.49 and Virgin Australia rose 5 cents to 42.5 cents and Flight Centre decreased 14 cents to $18.07.

QR National slipped 5 cents to $3.33.