Australian Stocks Decline, Billabong Plunges 48%

Marcus Jacob
25 Jun, 2012
New York City

Investors in Australia and in Asia are increasingly turning away their focus from the euro zone as the summit paralysis sets in. Billabong plunges 48% as investors dump share as the company launches its public offer. Fairfax embarks on a restructuring and shakes up its editorial leadership.

[R]7:00 PM Sydney – Investors in Australia and in Asia are increasingly turning away their focus from the euro zone as the summit paralysis sets in. Billabong plunges 47% as investors dump share as the company launches its public offer. Fairfax embarks on a restructuring and shakes up its editorial leadership.[/R]

Australian markets closed lower as gloom prevailed in most of Asian trading and investors worried that the inability of the European nations to contain the widening crisis may drag world economy down.

The ASX 200 index slipped 20.40 to 4,027.80 and All Ordinaries index slid 21.84 to 4,071.96.

The Australian dollar decreased for the third day and dropped to 99.95 U.S. cents after trading at or above parity with the U.S. dollar.

In trading, stock turnover was flat at 1.69 billion worth $3.6 billion with 330 stocks trading higher, 721 declining and 402 were unchanged.

Stock Movers

Consolidated Media rose 3 cents to $3.40 and Fairfax fell 1 cent to 57 cents after the company shook up its editorial leaderships at The Age and The Sydney Morning Herald and embarked on a restructuring and deepen its reliance on digital products.

News Corp, the controversial media conglomerate with aggressive tactics fell 3 cents to $20.30 and Ten Network added 5 cent to 51.5 cents.

BHP Billiton Limited declined 45 cents to $31.07 and Rio Tinto Limited slumped 12 cents to $55.90. Fortescue Metals Group decreased 6 cents to $4.85.

Lynas Corporation Limited fell 3.5 cents to 91 cents and Iluka Resources decreased 8 cents to $11.30. Newcrest Mining dropped 70 cents to $22.35 and Kingsgate shrink 12 cents to $5.04.

Oil Search Limited slid 6 cents to $6.30 and Santos Limited slipped 8 cents to $11.24 and Orica advanced 45 cents to $24.17.

David Jones Limited was unchanged to $2.28, Harvey Norman Holdings rose 1 cent to $1.88 and Woolworths added 2 cents to $26.40. Kathmandu fell 3 cents to $1.09.

Billabong International Limited tumbled 47.5% or 87 cents to 96 cents after investors dumped the shares as the struggling retailer of surfwear launched a public offering to raise $225 million at 44% discount to its last traded price of $1.83. The public offer price is $1.02.

Myer decreased 1.8% to a record low of $16.69 and a day ago chief executive Bernie Brookes reaffirmed the earnings fall in the current year of 15%.

Alesco decreased 1 cent to $1.98. DuluxGroup increased 2 cents to $2.98 and said its takeover offer for Alesco is “compelling” and the company’s reason to reject its bid are “deficient and misconceived.”

Commonwealth Bank of Australia declined 14 cents to $51.55 and Bank of Queensland was unchanged to $6.54. ANZ increased 6 cents to $21.34. National Australia Bank rose 3 cents to $23.20 and Westpac Banking Corporation dropped 10 cents to $20.65. Macquarie Group slumped 10 cents to $25.47.

Perpetual Limited advanced 69 cents to $24.03 after the company estimated full year profit to plunge 65% on restructuring costs and will cut 580 jobs and cut the pay of its board members.

Stockland slid 11 cents to $3.18, Leighton closed down at 18 cents to $16.53 and Toll Holdings decreased 4 cents to $4.0.

Qantas fell 1 cent to $1.11, Virgin Australia slid 5 cents at 37 cents and Flight Centre gained 24 cents to $18.86.

QR National slipped 5 cents to $3.32.