Australian Dollar Inches to Record; Telstra Net Up, News Corp Swings to Loss

Marcus Jacob
09 Aug, 2012
New York City

Stocks in Sydney trading rested for the first time in a week after the latest statistics from China suggested decelerating growth rates. News Corp swung to a loss and Telstra reported its first annual profit increase in three years. Tabcorp profit declined.

[R]7:30 PM Sydney – Stocks in Sydney trading rested for the first time in a week after the latest statistics from China suggested decelerating growth rates. News Corp swung to a loss and Telstra reported its first annual profit increase in three years. Tabcorp profit declined.[/R]

Australian stocks closed lower and China reported mixed economic data that generally highlighted falling inflation, manufacturing output and a decline in retail sales growth.

The latest batch of data release from the Chinese statistical agency showed retail sales growth fell to 11.3% in July from 11.5% in June.

The growth in industrial output in the month fell to 9.2% from 9.5% in June and electricity generation in the month increased only 2.1%.

Consumer price index or inflation declined 1.8% increase from 2.2% in June and the lowest increase since January 2010.

The ASX 200 index edged lowered 4.30 to 4,308.30 and All Ordinaries index fell 2.84 to 4,330.06.

The Australian dollar traded as high as US$1.067 and closed at $1.059.

In trading, turnover decreased to 1.42 billion shares worth $4.2 billion and 427 shares increased, 388 decreased and 392 were unchanged.

Stock Movers

BHP Billiton Limited advanced 52 cents to $32.80 and, Rio Tinto Limited gained $1.97 to $56.86 and Fortescue Metals Group closed unchanged at $4.52.

Rio Tinto closed higher after it released earnings after the close yesterday that showed a sharp fall in its revenues and earnings but the iron ore miner guided better performance in the current quarter.

Rio Tinto reported first-half total revenue declined to $25.34 billion from $29.06 billion in the previous year. Net earnings dropped 22% to $5.89 billion from $7.59 billion and underlying profit dropped to $5.2 billion on a comparable basis.

Iluka Resources soared 56 cents or 5.8% $10.13, Lynas Corporation Limited closed unchanged at 77 cents, Newcrest Mining added 6 cents to $24.46 and Kingsgate slid 6 cents to $3.98. Whitehaven Coal increased 7 cents to $3.87.

Oil Search Limited rose 3 cents to $7.10 and Santos Limited added 9 cents to $11.25 and Woodside Petroleum advanced 23 cents to $34.43. Sundance Energy closed up 1.5 cents at 43 cents.

News Corp declined 76 cents to $21.88 after the controversial media conglomerate reported 55% decline in fiscal 2012 and guided a modest increase in earnings in the current fiscal year.

The entertainment and media group and operator of a cable channel with aggressive and speculative commentary also was forced to split its publishing division after a phone hacking scandal in the UK that exposed the widespread practice that went on for more than four years.

Ten Network closed unchanged at 45 cents and Fairfax Media up 1 cents to 53 cents.

Consolidated Media Holdings fell 1 cent to $3.43 after competition authority approved the offer from News Corporation.

Tabcorp decreased 11 cents to $3.20 after the casino operator reported annual profit declined to $340 million in the year to June from $534.8 million in the previous fiscal 2011.

Metcash added 2 cents to $3.45, Harvey Norman Holdings closed up 2 cents at $1.92 and Woolworths plummeted 56 cents to $28.50. Kathmandu rose 4 cents to $1.34.

Commonwealth Bank of Australia declined 56 cents to $57.03 and Bank of Queensland rose 4 cents to $7.78. ANZ gained 20 cents to $25.14. National Australia Bank slipped 20 cents at $25.42 and Westpac Banking Corporation decreased 12 cents to $24.01.

Macquarie Group gained 8 cents to $25.73 and Perpetual Limited advanced 25 cents to $25.40.

David Jones Limited rose 3 cents to $2.49 and Wesfarmers decreased 12 cents to $32.61. Billabong International Limited closed unchanged at $1.40. Breville Group fell 1 cent to $5.03.

Harvey Norman added 2 cents to $1.92 after it said full-year profit may plunge 40% and sales are expected to decline 7% in the fiscal year ending in June.

Stockland slid 3 cents to $3.21 after the outgoing managing director Matthew Quinn said current housing market conditions are the worst in two decades.

Toll Holdings rose 1 cent to $4.24 and Leighton increased 14 cents to $16.56.

Qantas fell 3 cents to $1.12 and Flight Centre plummeted 79 cents to $21.89 and Virgin Australia up 0.5 cents 43 cents.

QR National added 1 cent to $3.33.

Telstra decreased 9 cents to $3.88 after the telecom operator reported profit increased for the first time in three years and added 1.6 million net new subscribers to its mobile network increasing it to 13.8 million.

The total number of fixed line connections dropped to 6.87 million and the average revenue per fixed line declined to $48.88 a month.

For the year, net income increased 5.4% to $3.41 billion and net sales increased 1% to $25.2 billion. The company issued a final dividend of 14 cents totaling to 28 cents a share in the year and the company guided that the dividend will be held the same in the current fiscal year.