Australian Markets Halt 3-Day Rally, BHP Falls After Production Report

Marcus Jacob
18 Jul, 2012
New York City

Stocks in Sydney declined for the first time in four days as investors focused on the weakening global economic outlook. The latest comments from the Fed Chairman Bernanke and the I.M.F. contributed to the weak market sentiment.

[R]7:30 PM Sydney – Stocks in Sydney declined for the first time in four days as investors focused on the weakening global economic outlook. The latest comments from the Fed Chairman Bernanke and the I.M.F. contributed to the weak market sentiment.[/R]

Australian stocks declined for the first time in four days as investors focused on gloomy outlook for global economic growth.

The ASX 200 index slipped 17.20 to 4,123.60 and All Ordinaries index slid 18.95 to 4,156.36.

The Australian dollar closed at US$1.03 and traded at a new record of 83.9 euro cents. Gold price for the immediate delivery eased $12 to $1,581 an ounce and oil futures gained to close at US$88.88 a barrel.

In trading, stock turnover decreased to 1.4 billion shares worth $3.5 billion and 355 stocks closed higher, 519 declined and 349 were unchanged.

BHP Billiton Production Report

BHP Billiton said iron ore production in June quarter increased 15% to record 40.89 million tons and for the year to the month increased 19% to 159.4 million tons. Crude oil barrels of equivalent oil declined 8% to 19 million barrels and fell 7% to 85.2 million barrels.

Copper production in the June quarter increased 15% to 312,000 tons and in the fiscal year fell 4% to 1.1 million ton.

Energy coal production increased slightly to 18.4 million tons in the quarter and for the year gained 2% to 71 million tons. Metallurgical coal production increased modest 2% to 8 million tons in the quarter and 33 million tons.

Stock Movers

News Corp advanced 33 cents to $21.89 and Ten Network closed down 1.5 cents to 49 cents and Fairfax Media fell 1 cent to 56.5 cents.

BHP Billiton Limited dropped 61 cents to $30.18 and traded near a 40-month low, Rio Tinto Limited declined $1.66 to $52.78 and Fortescue Metals Group decreased 16 cents to $4.38.

Iluka Resources declined 29 cents to $8.75, Lynas Corporation Limited closed down 2.5 cents at 86 cents, Newcrest Mining dropped 83 cents to $21.19 and Kingsgate slipped 16 cents to $4.79. Whitehaven Coal slid 2.3% or 9 cents to $3.85.

Oil Search Limited fell 6 cent to $6.53, Santos Limited declined 30 cents to $10.10 and Woodside Petroleum slumped 40 cents to $30.38.

Metcash closed down 4 cents to $3.24, Harvey Norman Holdings closed unchanged at $1.95 and Woolworths slid 5 cents to $27.05. Kathmandu was unchanged at $1.11.

David Jones Limited closed down 3 cents to $2.28. Telstra fell 1 cent to $3.87 and Billabong International Limited was unchanged at $1.04.

Commonwealth Bank of Australia advanced 35 cents to $55.25 and Bank of Queensland rose 4 cents to $6.85. ANZ gained 9 cents to $22.96. National Australia Bank added 7 cents to $23.77 and Westpac Banking Corporation increased 9 cents to $22.59.

Macquarie Group declined 62 cents to $24.74 and Perpetual Limited advanced 32 cents to $23.37.

Leighton gained 5 cents to $15.79, Stockland added 2 cents to $3.19 and Toll Holdings fell 2 cents to $3.81.

Qantas closed unchanged at $1.05, Virgin Australia closed up 0.5 cents at 38 cents and Flight Centre slipped 10 cents to $21.22.

QR National rose 1 cent to $3.29.