Global Worries Catch Up With Australian Stocks

Marcus Jacob
14 Jun, 2012
New York City

Australian stocks traded lower on the growing worries that commodities prices may remain depressed for the rest of the year as euro zone struggles to contain debt contagion. Gloucester Coal plans to pay special dividend of $95 million.

[R]8:30 PM Sydney – Australian stocks traded lower on the growing worries that commodities prices may remain depressed for the rest of the year as euro zone struggles to contain debt contagion. Gloucester Coal plans to pay special dividend of $95 million.[/R]

Australian stocks struggled as world markets focused on the upcoming Greek election this Sunday and a series of meetings of central bankers and G20 leaders next week.

Most sectors declined and commodities prices were on the defensive on the rising worriers rooted in the euro zone and on the prospect of slowing exports to China.

Spain was in focus again after the rating agency Moody’s lowered its credit rating on Wednesday by three notches to just above junk status. Investors were also nervous about the rising bond yields of Spain and Italy ahead of a key debt auction on Thursday.

The ASX 200 index slides 21.60 or 0.5% to 4,042.20 and All Ordinaries index slipped 21.70 to 4,089.83.

The Australian dollar extended gains for the fourth day to 99.61 U.S. cents.

In trading, turnover decreased to 1.48 billion shares worth $2.9 billion and 366 shares rose, 595 fell and 385 were unchanged.

Stock Movers

David Jones Limited unchanged to $2.24, Harvey Norman Holdings closed down at 3 cents to $1.88 and Woolworths slipped 13 cents to $26.39.

Kathmandu slides 2 cent to $1.10. Billabong International Limited increased 9 cents to $1.98.

Gloucester Coal increased 9 cents to $1.25 and the company said it plans to pay out $95 million in a special dividend to shareholders this month after it won a court approval to merge with China based Yancoal.

BHP Billiton Limited decreased 12 cents to $31.80 and Rio Tinto Limited shrank 33 cents to $54.27. Fortescue Metals Group raised 1 cents to $4.69 and the miner said it has merged some of its iron ore assets with China controlled Baosteel.

Lynas Corporation Limited fell 3.5 cents to 91.5 cents and Iluka Resources slides 13 cents to $11.78. Newcrest Mining declined 22 cent to $24.42 and Kingsgate down 1 cent to $5.65.

Oil Search Limited decreased 10 cents to $6.67 and Santos Limited slumped 15 cents to $11.58 and Orica shrank 35 cents to $23.77.

Commonwealth Bank of Australia fell 5 cents to $50.57 and Bank of Queensland slides 3 cents to $6.64. ANZ slumped 21 cents to $21.36. National Australia Bank slides 9 cents to $22.06 and Westpac Banking Corporation closed decreased at 20 cents to $20.29. Macquarie Group declined 66 cents to $25.14.

Perpetual soared $2.15 or 10% to $23.79 on media speculation that the company may receive a takeover proposal at $30 a share.

Fairfax decreased 1 cent to 60 cents and a buyer acquired $25 million of stocks of the company in one transaction, stoking speculation that billionaire Gina Rinehart may be the mystery buyer.

Stockland added 1 cent to $3.22, Leighton shrank 23 cents to $16.65 and Toll Holdings closed down at 8 cents to $4.24.

NewSat increased 1 cent to 80 cents after the communication company won a contract to provide services in Afghanistan.

Qantas extended gains 4 cents to $1.14, Virgin Australia slides 5 cents to 38 cents and Flight Centre increased 14 cents to $18.86.

QR National fell 2 cents to $3.34.