Australian Indexes Extended Losses, BlueScope Plunges

Marcus Jacob
01 Jun, 2012
New York City

The Australian indexes extended losses for the third day but closed up the week 0.9%. The dollar edged lower and declined 7% in the last four weeks. BlueScope Steel may face as much as $140 million in revised taxes for two years to 2008.

[R]8:00 PM Sydney – The Australian indexes extended losses for the third day but closed up the week 0.9%. The dollar edged lower and declined 7% in the last four weeks. BlueScope Steel may face as much as $140 million in revised taxes for two years to 2008.[/R]

World markets plunged in May after rising worries in the euro zone and slowing economies in the region and China and India dragged market sentiment.

Indexes in the U.S. dropped more than 6% in the month and in Europe fell between 6% and 9% and indexes in Hong Kong plunged more than 11% as Chinese economic growth slows and bank lending flattens. The Nikkei index in Japan dropped 10.3% in the month and the benchmark ASX 200 index plunged 7.3%.

The benchmark index ASX 200 index declined for the third day in a row tracking lower markets in Asia and overnight weakness in the European and American trading.

The ASX 200 index fell 12.40 to 4,063.90 and All Ordinaries index shrank 16.81 to 4,116.92. The ASX 200 index gained 0.9% for the week, its first weekly rise in four weeks.

In trading, stock turnover decreased to 1.5 billion shares worth $3.8 billion and 323 shares closing higher, 629 declined and 347 remained unchanged.

The Australian dollar traded near the low of the year at 96.90 U.S. cents and extended loss to 7% in the last four weeks.

Stock Movers

BlueScope Steel dropped 2.5 cents or 32% to 7.25 cents after the Australian Tax Office said it plans to amend its tax assessment for the years 2007 and 2008 that could lead to a demand of $140 million.

David Jones Limited fell 2 cents to $2.19 and said three months to April 28 total sales declined 2.9% from a year ago and the retailer is getting ready to launch its annual financial year clearance.

Harvey Norman Holdings closed down 5 cents to $1.92 and Woolworths advanced 19 cents to $26.63.

Kathmandu fell 2 cents to $1.10. Billabong International Limited slides 6 cents to $1.86.

Echo Entertainment declined 0.9% or 4 cents to $4.36 after it reported a write-down of $30 million and asked shareholders to reject a bid by billionaire James Packer to obtain a seat on its board.

BHP Billiton Ltd slipped 24 cents to $31.73 and Rio Tinto Ltd plummeted $1.33 to $55.53. Fortescue Metals Group decreased 5 cents to $4.57.

Lynas Corporation Limited down 1 cent to $1.02 cents and Iluka Resources declined 58 cents to $12.82. Newcrest Mining shrank 81 cents to $24.11 and Kingsgate slumped 10 cents to $5.14.

Oil Search Limited decreased 11 cents to $6.70 and Santos Limited slides 27 cents to $11.72 and Orica dropped 46 cents to $24.30.

Commonwealth Bank of Australia gained 29 cents to $49.69 and Bank of Queensland decreased 10 cents to $6.60. ANZ advanced 34 cents to $21.24. National Australia Bank slides 11 cents to $23.50 and Westpac Banking Corporation increased 15 cents to $20.44.

Stockland rose 2 cents to $3.21, Leighton slides 7 cents to $17.60 and Toll Holdings closed down at 16 cents to $4.46.

Qantas fell 2 cents to $1.47 and Virgin Australia unchanged to 42.5 cents and Flight Centre dropped 40 cents to $17.80.

QR National decreased 8 cents to $3.33.