Australian Stocks at Six-Month Low, Corporate Profits Ease

Marcus Jacob
04 Jun, 2012
New York City

Australian stocks plunged and the benchmark index declined to six-month low after commodities prices eased. Business inventories adjusted for inflation and seasonality declined in the March quarter and corporate profit fell.

[R]8:00 PM Sydney – Australian stocks plunged and the benchmark index declined to six-month low after commodities prices eased. Business inventories adjusted for inflation and seasonality declined in the March quarter and corporate profit fell.[/R]

Australian stocks declined after weaker than expected jobs data in the U.S. and a falling Chinese manufacturing data extended losses in Asian markets.

The benchmark index in Australia declined to six-month low and the index fell below 4,000 for the first time since November 25.

The ASX 200 index declined 78.90 or 1.9% to 3,985.0 and All Ordinaries index slumped 83.52 or 2% to 4,033.41. The ASX 200 index extended losses to 10.1% since May 1.

The Australian dollar traded near the low of the year but rebounded to 97.09 U.S. cents and edged up to 78 euro cents and 63 .14 cents against British pound.

Australian business inventories adjusted for seasonality and inflation expanded at a slower pace in March quarter according to the latest data released by the Australian Bureau of Statistics.

Separately, the statistics office also said corporate profit fell 4% in the quarter not adjusted for price changes and mining sector profit plunged 18.4%. Aggregate wages and salaries rose 2.1% but the combined measures of profits and wages decreased less than 1%.

A private survey of job market conducted by ANZ indicated job vacancies declined 2.4% in May from April and dropped 4.3% from a year ago.

Stock Movers

Stocks in Resource, banking and retail sector were among the leading decliners as investors dumped mining and energy companies after commodities prices eased for the eighth week in a row.

David Jones Limited decreased 6 cents to $2.13, Harvey Norman Holdings closed down 4 cents to $1.88 and Woolworths decreased 10 cents to $26.53.

Kathmandu slides 6 cents to $1.04. Billabong International Limited decreased 6 cents to $1.80.

BHP Billiton Ltd plummeted 98 cents to $30.75 and Rio Tinto Ltd shrank $2.63 to $52.90. Fortescue Metals Group decreased 22 cents to $4.35.

Lynas Corporation Limited down 5.5 cent to 97 cents and Iluka Resources declined 94 cents to $11.88. Newcrest Mining increased 42 cents to $24.53 and Kingsgate gained 20 cents to $5.34.

Gloucester Coal fell 12 cents to $6.75 after the company approved the merger with China based Yancoal Australia.

Oil Search Limited slides 24 cents to $6.46 and Santos Limited declined 50 cents to $11.22 and Orica dropped 64 cents to $23.66.

Commonwealth Bank of Australia dropped 64 cents to $49.05 and Bank of Queensland slumped 27 cents to $6.33. ANZ shrank 37 cents to $20.87. National Australia Bank plummeted 44 cents to $23.03 and Westpac Banking Corporation decreased 24 cents to $20.20.

Stockland fell 4 cents to $3.17, Leighton plunged $1.03 or 5.8% to $16.57 and Toll Holdings closed down at 11 cents to $4.35.

Qantas decreased 5 cents to $1.42 and Virgin Australia fell 1.5 cents to 41 cents and Flight Centre plummeted 77 cents to $17.03.

QR National fell 2 cents to $3.31.