Australian Stocks in 4-day Losses, Rinehart Threatens to Sell Fairfax Stake

Marcus Jacob
26 Jun, 2012
New York City

Australian stocks extended losses for the fourth day in a row and resource sector stocks declined. News Corp is considering splitting its entertainment and news operations as the company struggles with multiple investigations.

[R]8:00 PM Sydney – Australian stocks extended losses for the fourth day in a row and resource sector stocks declined. News Corp is considering splitting its entertainment and news operations as the company struggles with multiple investigations.[/R]

Australian indexes traded lower for the fourth day in a row as investors dialed back expectations of a concrete plan at the end of a 2-day summit of European leaders. Commodities eased and region markets in Asia generally closed lower.

The ASX 200 index slid 14.50 to 4,013.30 and All Ordinaries index decreased 15.64 to 4,056.32.

The Australian dollar rebounded to US$1.005 and struggled to hold the parity line as global economic growth prospect dim on the widening debt contagion in the euro zone.

In trading, stock turnover increased to 1.75 billion worth $3.45 billion with 314 stocks trading higher, 742 declining and 437 were unchanged.

Stock Movers

News Corp, the controversial media conglomerate with aggressive tactics gained 49 cents to $20.79 after the company is exploring to split its news operation from its entertainment division.

Ten Network declined 1.5 cent to 50 cents and recent capital raising attracted investments from James Packer, Lachlan Murdoch and Gina Rinehart.

Fairfax Media declined 2 cents to 55 cents after the company’s largest shareholder Gina Reinhart threatened to sell her stake if she did not win a board without conditions. Rinehart refuses to sign a pledge to maintain editorial independence.

BHP Billiton Limited declined 44 cents to $30.63 and dropped to a 3-year low, Rio Tinto Limited slumped 56 cents to $55.34 and the miner said it will eliminate 50 jobs at the recently acquired Ivanhoe Australia.

Fortescue Metals Group added 3 cents to $4.88.

Lynas Corporation Limited fell 2 cents to 89 cents and Iluka Resources decreased 6 cents to $11.24. Newcrest Mining slipped 10 cents to $22.25 and Kingsgate shrink 6 cents to $4.98.

Oil Search Limited slid 6 cents to $6.24 and Santos Limited slumped 16 cents to $11.08 and Orica advanced 26 cents to $24.43.

David Jones Limited decreased 4 cents to $2.24, Harvey Norman Holdings fell 1 cent to $1.87 and Woolworths increased 12 cents to $26.52. Kathmandu fell 4 cents to $1.04.

Billabong International Limited rebounded 6 cents to $1.02 and a day ago investors dumped the shares as the struggling surfwear retailer said it will raise capital that will dilute current shareholders.

Commonwealth Bank of Australia gained 15 cents to $51.70 and Bank of Queensland slid 6 cents to $6.48. ANZ decreased 4 cents to $21.30. National Australia Bank slumped 6 cents to $23.14 and Westpac Banking Corporation rose 2 cents to $20.67. Macquarie Group slipped 12 cents to $25.35.

Perpetual Limited plunged 6.2% or $1.51 to $22.52 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 6 cents to $3.12, Leighton declined 30 cents to $16.23 and Toll Holdings decreased 9 cents to $3.91.

Qantas slid 4 cents to $1.07, Virgin Australia was unchanged at 37 cents and Flight Centre plummeted 34 cents to $18.52.

QR National fell 1 cent to $3.31.