Australian Stocks Ease, Centro in $200 Million Settlement

Marcus Jacob
19 Jun, 2012
New York City

Australian stocks edged lower as world investors shift focus to Spain and the gathering of G 20 leaders. IMF is expected to receive more capital from member nations and increase lending to the euro zone. Centro shareholders will see only 60% of $200 million in legal settlement.

[R]8:00 PM Sydney – Australian stocks edged lower as world investors shift focus to Spain and the gathering of G 20 leaders. IMF is expected to receive more capital from member nations and increase lending to the euro zone. Centro shareholders will see only 60% of $200 million in legal settlement.[/R]

Stocks in Australian trading declined as investors focused on the rising debt stress in the euro zone and Greece struggles to form a new government that is expected to honor the condition of international bailout.

The leaders of G20 nations are expected to devise an action plan with a focus to contain the widening debt contagion in the euro zone and member nations of IMF are expected o provide more capital.

The ASX 200 index slipped 13.60 to 4,123.30 and All Ordinaries index decreased 16.47 to 4,167.40.

The Australian dollar extended gains for the seventh day to US$1.015 and traded above parity for the third day in a row.

Centro shareholders won a $200 million settlement in a federal court that will end four years of court battle. Former auditor PriceWaterhouseCoopers will pay $67 million of the total settlement.

More than 5,000 shareholders are expected to participate in a $120 million pool after paying nearly $80 million in legal costs, distribution costs.

Stock Movers

BHP Billiton Limited decreased 15 cents to $32.49 and Rio Tinto Limited dropped 23 cents to $56.77. Fortescue Metals Group declined 12 cents to $4.85.

Lynas Corporation Limited gained 8 cents to $1.01 and Iluka Resources slipped 8 cents to $12.43. Newcrest Mining advanced 54 cent to $25.14 and Kingsgate increased 9 cents to $5.62.

Oil Search Limited shrank 15 cents to $6.60 and Santos Limited fell 8 cents to $11.94 and Orica plummeted 29 cents to $24.18.

Echo Entertainment closed down 8 cents to $4.25 as the company prepares for its stock offering at a discount.

David Jones Limited fell 4 cents to $2.27, Harvey Norman Holdings closed down 2 cents to $1.88 and Woolworths fell 1 cent to $26.60.

Kathmandu added 3 cents to $1.20. Billabong International Limited slid 5 cents to $1.87.

Commonwealth Bank of Australia rose 5 cents to $51.59 and Bank of Queensland decreased 9 cents to $6.82. ANZ slumped 12 cents to $21.68. National Australia Bank gained 14 cents to $22.95 and Westpac Banking Corporation closed up 4 cents to $20.80. Macquarie Group decreased 14 cents to $26.0.

Perpetual Limited declined 71 cents to $23.29 as speculators expect another bid for the company at a higher price.

Fairfax Media fell 5.5 cents to 59.5 cents after billionaire investor Gina Rinehart said she will not increase her stake in the company beyond 18.7%.

Stockland rose 2 cents to $3.30, Leighton closed unchanged at $17.41 and Toll Holdings closed down 5 cents to $4.25.

Qantas slides 4 cents to $1.14, Virgin Australia was unchanged at 39 cents and Flight Centre increased 5 cents to $19.36.

QR National slipped 6 cents to $3.38.