Australian Retail Sales Rise 1% and Trade Balance Swings to Surplus

Marcus Jacob
02 Aug, 2012
New York City

Australian markets closed higher ahead of rate decisions in Europe. Australian retail sales rose 1% in June and sales in May were revised higher to 0.8%. Trade balance in June improved to a modest surplus on a fall in import prices.

[R]7:30 PM Sydney – Australian markets closed higher ahead of rate decisions in Europe. Australian retail sales rose 1% in June and sales in May were revised higher to 0.8%. Trade balance in June improved to a modest surplus on a fall in import prices.[/R]

Australian retail sales rose 1% in June and sales in May were revised to an increase of 0.8% from the previous estimate of 0.5%.

The back-to-back two monthly gains were the largest in more than two years after the government distributed its education bonus and the carbon tax adjustments.

Also, exports in June exceeded imports and trade balance returned to surplus of modest $9 million. Imports prices declined 2%.

The ASX 200 index edged up 6.70 to 4,269.50 and All Ordinaries index rose 7.49 to 4,290.15.

The Australian dollar traded sideways and closed at US$1.049, fetched 82.2 yen, 85.6 euro cents and 67.4 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 1.48 billion shares to $3.9 billion and 433 stocks gained, 403 declined and 368 were unchanged.

Stock Movers

BHP Billiton Limited gained 32 cents to $32.02 and, Rio Tinto Limited advanced 88 cents to $54.41 and Fortescue Metals Group increased 22 cents to $4.37.

BHP said it is still reviewing its expansion plan at Port Hedland harbor after a leaked internal email showed details of iron ore expansion plans.

Sundance Resources was in a trading halt and last traded at 33.5 cents and reports suggested China based Hanlong Mining had lowered its $1.65 billion takeover offer.

Iluka Resources decreased 15 cents to $9.25, Lynas Corporation Limited fell 0.5 cents to 82.5 cents, Newcrest Mining added 6 cents to $23.52 and Kingsgate increased 14 cents to $4.09. Whitehaven Coal slid 3 cents to $3.55.

Aquaris Platinum plunged 13% to 49.5 cents after three people died and at least 20 were injured in an accident at its production location in South Africa.

Oil Search Limited gained 10 cents to $7.07, Santos Limited increased 7 cents to $10.80 and Woodside Petroleum advanced 67 cents to $34.25. Sundance Energy fell 1.5 cents to 39.5 cents.

Ten Network closed unchanged at 47 cents and Fairfax Media slipped 2 cents to 51 cents.

Consolidated Media Holdings increased 1 cent to $3.44 after competition authority approved the offer from News Corporation.

Metcash rose 2 cents to $3.37, Harvey Norman Holdings closed unchanged at $2 and Woolworths added 3 cents to $28.75. Kathmandu fell 2 cents to $1.21.

Commonwealth Bank of Australia declined 68 cents to $56.59 and Bank of Queensland rose 3 cents to $7.60. ANZ fell 2 cents to $23.50. National Australia Bank added 4 cents at $25.15 and Westpac Banking Corporation increased 28 cents to $23.53.

Macquarie Group slipped 8 cents to $24.91 and Perpetual Limited advanced 43 cents to $24.39.

David Jones Limited slid 3 cents to $2.40 and Wesfarmers slumped 34 cents to $32.41. Billabong International Limited rose 1 cent to $1.38. Breville Group slipped 15 cents to close at $4.85.

Leighton slumped 18 cents to $16.85, Stockland closed unchanged at $3.37 and Toll Holdings fell 1 cent to $4.12.

Qantas closed unchanged at $1.12 cents, Flight Centre gained 21 cents to $21.88 and Virgin Australia up 1 cent 41.5 cents.

QR National fell 2 cents to $3.24.