Weak Metals, World Markets Drag Australian Indexes 1.7%

Marcus Jacob
23 Jul, 2012
New York City

Australian indexes plunged 1.7% as markets in Asia declined. World markets turned cautious after fears rose that Spain may be sliding towards a full blown bailout as crisis moves from the banking industry turmoil to economic decline.

[R]7:30 PM Sydney – Australian indexes plunged 1.7% as markets in Asia declined. World markets turned cautious after fears rose that Spain may be sliding towards a full blown bailout as crisis moves from the banking industry turmoil to economic decline.[/R]

Australian markets fell sharply on growing fears that Spain is moving from a banking crisis to economic and government financial crisis.

Spain may be forced to join a long list of other smaller nations in the euro zone to ask for a bailout and struggles to arrest widening economic recession in the fourth largest economy in the region.

Market mood soured in Asian trading and resource prices took a negative turn. The prices of crude oil and precious metals declined more than 2%

The ASX 200 index declined 70.20 or 1.7% to 4,128.90 and All Ordinaries index slumped 71.39 or 1.7% to 4,159.17.

The Australian dollar closed at US$1.031 and edged lower from the record 85.20 euro cents and crude oil futures rose for the eighth straight session in New York and in Asian trading.

In trading, turnover increased to 1.36 billion shares to $3.2 billion and 245 stocks gained, 653 declined and 347 were unchanged.

Stock Movers

News Corp decreased 23 cents to $21.40, Ten Network closed down 1.5 cent to 50 cents and Fairfax Media slipped 3 cents to 55 cents.

BHP Billiton Limited dropped 81 cents to $30.55 and traded near a 40-month low, Rio Tinto Limited declined $1.87 to $51.52 and Fortescue Metals Group slumped 31 cents to $4.05.

Iluka Resources plummeted 44 cents or 5.1% to $8.14, Lynas Corporation Limited closed down 6.5 cents to 81 cents, Newcrest Mining decreased 89 cents to $20.94 and Kingsgate slid 15 cents to $4.74. Whitehaven Coal decreased 2.5% or 10 cent to $3.95.

Oil Search Limited slumped 21 cents to $6.58 and Santos Limited dropped 31 cents to $10.24. Woodside Petroleum decreased 46 cents to $32.33.

Metcash fell 2 cents to $3.20, Harvey Norman Holdings closed down 6 cents to $2.04 and Woolworths advanced 27 cents to $27.89. Kathmandu closed unchanged at $1.14.

David Jones Limited slid 6 cents to $2.35. Telstra slipped 6 cents to $3.89 and Billabong International Limited decreased 8 cents to $1.10.

Commonwealth Bank of Australia slumped 38 cents to $54.74 and Bank of Queensland slipped 9 cent to $7.03. ANZ dropped 25 cents to $22.82. National Australia Bank declined 30 cents to $23.69 and Westpac Banking Corporation decreased 30 cents to $22.55.

Hastings Diversified Utilities Fund closed unchanged at $2.48 after the company urged shareholders to reject takeover offer. The offer was earlier approved by regulators.

Macquarie Group slumped 24 cents to $24.46 and Perpetual Limited declined 73 cents to $23.03.

Leighton decreased 30 cents to $15.92, Stockland fell 3 cents to $3.19 and Toll Holdings dropped 21 cents to $3.91.

Qantas closed down 3 cents to $1.03, Flight Centre declined 71 cents to $20.88 and Virgin Australia fell 2 cents at 37.5 cents.

QR National slumped 13 cents to $3.21.