Australian Stocks Fall, CBA Reports $7 Billion Profit

Marcus Jacob
15 Aug, 2012
New York City

Australian investors sought the safety in local economy oriented companies. Commonwealth Bank reported record $7 billion profit for the year ending in June. OZ Minerals dropped 7% after it reported rising profits but operating costs rose more than expected.

[R]6:00 PM Sydney – Australian investors sought the safety in local economy oriented companies. Commonwealth Bank reported record $7 billion profit for the year ending in June. OZ Minerals dropped 7% after it reported rising profits but operating costs rose more than expected.[/R]

Australian stocks fell and trading volume was near one month high. The weak commodities prices weighed on the sentiment.

The Commonwealth Bank reported fiscal year net increased 11% to $7.1 billion, the largest annual net profit of any company outside the mining sector.

The ASX 200 index decreased 11 or 0.3% to 4,281.20 and the broader All Ordinaries slid 10.37 or 0.2% to 4,307.04.

The Australian dollar edged up a fraction to close at $1.050.

In trading, stock turnover was 1.52 billion shares worth $4.02 billion with 444 shares closing higher, 451 falling and 339 were unchanged.

Stocks in Review

Telstra gained 4 cents to $3.87 ahead of the company going ex-dividend on Friday.

National Australia Bank declined 1.8% to $24.26 after it reported flat third quarterly net income a day ago, Westpac decreased 2 cents to $23.68 and ANZ fell 13 cents to $23.63 ahead of its earnings tomorrow.

Commonwealth traded higher 51 cents to $56.05 after it reported full-year net income of $7.09 billion. Revenues in the year increased 2% to $47.2 billion. Customer deposits at the end of the year increased 8% to $379 billion.

Cash profit after tax was $7.11 billion, an increase of 4% from a year ago. For the second half, the profit was flat at $3.54 billion and in the year loan impairment expenses declined 15% to $1.09.

BHP Billiton dropped 33 cents to $32.62 and Rio Tinto declined $1.42 to $55.10.

OZ Minerals dropped 7% despite the mining company reporting an increase in six month net income but operating costs rose more than expected.

Primary Health Care soared 12% to $3.46 after the operator of medical centers and pathology provider reported 49% increase in net income to $116.6 million for the full year.

Westfield Group added 0.5% to $9.63 after the developer and operator of retail malls said first-half net increased 31.4% to $800.1 million.