Australian Markets in 4-Day Decline, IAG Targets Asian Growth

Marcus Jacob
10 Jul, 2012
New York City

Australian stocks traded lower for the fourth day in a row after investors focused on the latest imports growth from China. The dollar held firm. IAG said it plans to target markets in India, Indonesia and Malaysia to drive its future growth.

[R]8:00 PM Sydney – Australian stocks traded lower for the fourth day in a row after investors focused on the latest imports growth from China. The dollar held firm. IAG said it plans to target markets in India, Indonesia and Malaysia to drive its future growth.[/R]

Australian stocks traded lower for the fourth day in a row as investors focused on international worries.

China reported less than expected imports growth in June to 6.3%, nearly half the previous month. The growth in exports declined to 11.3% from 15.3% in May.

The decline in exports growth is worried the market as Australian resources companies rely on Chinese demand.

The ASX 200 index slid 20.30 to 4,098.0 and All Ordinaries index slipped 21.84 to 4,137.94. The Australian dollar closed at US$1.023.

In trading, turnover increased to 1.47 billion shares worth $3.18 billion and 359 stocks rose, 546 decreased and 350 were unchanged.

Stock Movers

Billabong International Limited fell 2 cents to $1.03 and the retailer remained the target of takeover speculators.

News Corp declined 21 cents to $21.60 and Ten Network fell 0.5 cents to 47 cents and Fairfax Media closed down 1.5 cents at 56 cents.

Resources stocks were lower on the worries that slowing economic growth in China may drag the demand for commodities and iron ore. China reported imports rose at a slower pace than exports.

BHP Billiton Limited slumped 26 cents to $31.22 and Rio Tinto Limited plummeted 44 cents to $56.10. Fortescue Metals Group rose 1 cent to $4.84.

Iluka Resources rebounded 37 cents or 4.2% to $9.25.

Lynas Corporation Limited added 2.5 cents to 83 cents, Newcrest Mining dropped 82 cents to $22.62 and Kingsgate decreased 7 cents to $5.06.

Oil Search Limited slid 4 cents to $6.47 and Santos Limited fell 3 cents to $10.55.

Metcash down 4 cents to $3.20, Harvey Norman Holdings closed down 3 cents to $1.92 and Woolworths fell 3 cents to $26.94. Kathmandu slid 3 cents to $1.13.

David Jones Limited closed down 5 cents to $2.35.

Commonwealth Bank of Australia slumped 34 cents to $53.44 and Bank of Queensland decreased 12 cents to $6.55. ANZ slipped 16 cents to $22.34. National Australia Bank slid 12 cents to $23.55 and Westpac Banking Corporation closed down 4 cents to $21.56.

Macquarie Group dropped 28 cents to $25.47 and Perpetual Limited gained 22 cents to $23.27.

Leighton plummeted 51 cents to $16, Stockland added 2 cents to $3.13 and Toll Holdings unchanged to $3.94.

Qantas fell 3 cents to $1.05, Virgin Australia edged up 0.5 cents at 38.5 cents and Flight Centre decreased 9 cents to $20.19.

QR National unchanged to $3.31.