Australian Stocks Lose Weekly Advance

Marcus Jacob
08 Jun, 2012
New York City

Australian indexes fell more than 1% after resources linked stocks eased as commodities prices declined. Three of the four largest banks in Australia passed on most of the latest rate cut from central bank. Qantas plunged 10% and extended losses for the fourth day.

[R]8:00 PM Sydney – Australian indexes fell more than 1% after resources linked stocks eased as commodities prices declined. Three of the four largest banks in Australia passed on most of the latest rate cut from central bank. Qantas plunged 10% and extended losses for the fourth day.[/R]

Stocks in Sydney traded lower and for the week the two indexes closed flat. The ASX 200 index lost most of the gains in today trading following weak regional trading and persistent worries stemming from the euro zone.

The ASX 200 index slumped 44.90 or 1.1% to 4,063.70 and All Ordinaries index slides 45.57 or 1.1% to 4,111.15. Qantas extended losses for the fourth day in a row and dropped to a new record low after a rating agency placed its debt on a watch list.

The Australian dollar rebounded to 98.52 U.S. cents.

In trading, turnover decreased to 1.5 billion shares worth $3.9 billion and 606 stocks gained, 359 declined and 329 were unchanged.

Stock Movers

David Jones Limited decreased 6 cents to $2.14, Harvey Norman Holdings closed down 1 cent to $1.87 and Woolworths slipped 16 cents to $26.51.

Kathmandu fell 3 cents to $1.11. Billabong International Limited slides 1 cent to $1.88.

BHP Billiton Limited gained 33 cents to $31.91 and Rio Tinto Limited increased 17 cents to $55.59. Fortescue Metals Group decreased 9 cents to $4.59 and Ivanhoe Australia added 2 cents to 56.5 cents after its chief executive Peter Reeve resigned.

Lynas Corporation Limited fell 5.5 cent to 96.5 cents and Iluka Resources slumped 40 cents to $12.30. Newcrest Mining declined $1.21 to $24.57 and Kingsgate shrank 30 cents to $5.61.

Oil Search Limited fell 3 cents to $6.60 and Santos Limited decreased 12 cents to $11.85 and Orica slumped 31 cents to $23.98.

Three of the four largest banks announced rate cut days after the Reserve Bank lowered its benchmark rate by 25 cents.

ANZ said it will cut its variable rate loans for mortgages and businesses by 25 basis points. Westpac said it will cut its standard variable home loan rate by 20 basis points and Commonwealth Bank will cut its rate by 21 basis points. NAB has still not announced any rate cut.

Commonwealth Bank of Australia closed down at 57 cents to $50.47 and Bank of Queensland slipped 9 cents to $6.52. ANZ shrank 25 cents to $21.56. National Australia Bank dropped 40 cents to $22.16 and Westpac Banking Corporation closed down at 34 cents to $20.43.

Stockland fell 2 cents to $3.23, Leighton slides 40 cents to $16.91 and Toll Holdings closed down at 12 cents to $4.38.

Qantas plunged 9 cents to 97 cents and extended losses for the fourth day in a row after Standard & Poor’s placed its debt on a ratings watch.

Virgin Australia fell 2 cents to 39.5 cents and Flight Centre increased 9 cents to $18.40.

QR National slides 9 cents to $3.40.