4-Day Rally in Australia Halts, Crown in $568 Million Perth Project

Marcus Jacob
01 Aug, 2012
New York City

Australian stocks halted a 4-day rally and the dollar closed flat in weak trading volume. Country Road agreed to acquire fashion retailer Witchery Australia for $172 million. Western Australia focused casino operator Crown plans to spend $568 million to build a luxury hotel in Perth.

[R]7:30 PM Sydney – Australian stocks halted a 4-day rally and the dollar closed flat in weak trading volume. Country Road agreed to acquire fashion retailer Witchery Australia for $172 million. Western Australia focused casino operator Crown plans to spend $568 million to build a luxury hotel in Perth.[/R]

Australian stocks halted 4-day rally and awaited the decision of central banks in Europe and in the U.S. Trading volume was below average as traders focused on new measures from the U.S. Fed and a decisive action from the European Central Bank to stem the rising yields of Spain and Italy.

The ASX 200 index edged lowered 6.40 to 4,262.80 and All Ordinaries index fell 6.72 to 4,282.66.

The Australian dollar traded volatile but closed flat at US$1.051, fetched 82.1 yen, 85.3 euro cents and 67 pence.

In commodities trading, New York oil futures traded near US$90 a barrel and gold in the spot market fetched US$1,618.35.

In trading, turnover decreased to 1.51 billion shares to $3.2 billion and 363 stocks gained, 495 declined and 366 were unchanged.

Stock Movers

Country Road agreed to acquire fashion retailer Witchery Australia for $172 million. Country Road was hated ahead of the announcement and last traded at $3.24.

Breville Group gained 22 cents to close at a new high of $5 and extended gains for the second day in a row after the kitchen appliance maker said full-year earnings are expected to increase 40%.

The casino operator Crown closed higher and the company announced a plan to spend $568 million to build a luxury hotel at its Perth casino and expand its gambling operations after an agreement with Western Australian government.

BHP Billiton Limited slumped 23 cents to $31.70 and, Rio Tinto Limited advanced 33 cents to $53.53 and Fortescue Metals Group added 2 cents to $4.15.

Iluka Resources decreased 11 cents to $9.40, Lynas Corporation Limited rose 2.5 cents to 83 cents, Newcrest Mining fell 4 cents to $23.46 and Kingsgate slipped 11 cents to $3.95. Whitehaven Coal slid 9 cents to $3.58.

Intrepid Mines soared 29% after the mining company agreed to sell 5% stake to Indonesian media conglomerate owner Surya Paloh.

Oil Search Limited lowered 3 cents to $6.97, Santos Limited down 2 cents to $10.73 and Woodside Petroleum slid 17 cents to $33.58. Sundance Energy fell 1 cent to 41 cents.

Paperlinx soared 34% after the company appointed Andrew Price as non-executive director of the company.

Ten Network closed down 0.5 cents to 47 cents and Fairfax Media rose 0.5 cents to 53 cents.

Metcash decreased 6 cents to $3.35, Harvey Norman Holdings closed unchanged at $2 and Woolworths gained 15 cents to $28.72. Kathmandu added 2 cents to $1.23.

David Jones Limited fell 1 cent to $2.43 and Wesfarmers increased 16 cents to $32.75. Billabong International Limited rose 1 cent to $1.37.

Commonwealth Bank of Australia dropped 26 cents to $57.27 and Bank of Queensland slipped 8 cents to $7.57. ANZ slid 2 cents to $23.52. National Australia Bank gained 13 cents at $25.11 and Westpac Banking Corporation added 5 cents to $23.25.

Macquarie Group up 1 cent to $24.99 and Perpetual Limited rose 5 cents to $23.96.

Leighton slid 8 cents to $17.03, Stockland added 2 cents to $3.37 and Toll Holdings increased 11 cents to $4.13.

Qantas fell 1 cent to $1.12 cents, Flight Centre advanced 44 cents to $21.67 and Virgin Australia closed unchanged at 40.5 cents.

QR National increased 6 cents to $3.26.