Australian Markets on Hold; Transfield, WorleyParsons in Focus

Marcus Jacob
29 Aug, 2012
New York City

Australian market indexes were flat as commodities price declined. Grocery wholesaler Metcash signed a $655 million deal to distribute liquor with 1,700 stores. WorleyParsons gained after higher core earnings and Transfield chief executive resigned on several profit downgrades.

[R]7:30 PM Sydney – Australian market indexes were flat as commodities price declined. Grocery wholesaler Metcash signed a $655 million deal to distribute liquor with 1,700 stores. WorleyParsons gained after higher core earnings and Transfield chief executive resigned on several profit downgrades.[/R]

Australian stocks were nearly flat in a listless trading after world markets shifted focus to central bankers and political leaders in the euro zone.

Expectations ran high ahead of the European leaders meeting on September 6 for another round of stimulus measures.

Australian mining and resource companies edged lower on the worries that the iron ore prices may fall further.

The ASX 200 index edged down 3 to 4,356.40 and the broader All Ordinaries slid 5.45 to 4,381.50.

The Australian dollar decreased to US$1.036 from US$1.037 on Wednesday.

Stock Movers

BHP Billiton Limited declined 34 cents to $32.76 and, Rio Tinto Limited plummeted $1.21 to $50.54 and Fortescue Metals Group plunged 25 cents or 6.4% to $3.65.

Iluka Resources slipped 17 cents $9.84 and Lynas Corporation Limited soared 5 cents or 7.6% to 71 cents. Newcrest Mining closed unchanged at $26.70. Kingsgate closed unchanged at $4.99 and Whitehaven Coal decreased 7 cents to $3.29.

Transfield Services fell 13.5 cents to $1.92 billion after the company’s leader stepped down after the company was forced to lower profit outlooks several times.

WorleyParsons gained 12 cents to $26.32 after the engineering firm reported higher core earnings despite the strong Australian dollar and market uncertainties.

The engineering contractor, Monadelphous Group slumped 14 cents to $21.90.

Oil Search Limited added 4 cents to $7.46 and Santos Limited up 2 cents to $11.55 and Woodside Petroleum lowered 1 cent to $34.64. Sundance Energy slid 0.5 cents to 70.5 cents.

ROC Oil increased 0.5 cents to 32 cents after the Australia focused oil and gas producer reported first half profit of US$28.6 million.

Seven West Media inched up 1 cent to $1.50, Ten Network closed up 1 cent at 39.5 cents and Fairfax Media closed unchanged at 45 cents.

Consolidated Media Holdings slid 1 cent to $3.43 after it reported 15.6% decline in net profit.

Metcash gained 3 cents to $3.66 after the grocery wholesaler won $655 million liquor distribution deal with 1,700 stores and locations. The wholesaler also said current year earnings per share are expected to fall between 1% and 3% on higher 90 million new shares.

Harvey Norman Holdings decreased 7 cents at $2.08 and Woolworths climbed 30 cents to $29.24. Kathmandu closed unchanged at $1.38.

Commonwealth Bank of Australia slipped 10 cents to $54.31 and Bank of Queensland closed unchanged at $7.57. ANZ gained 4 cents to $24.98. National Australia Bank slumped 16 cents at $25.09 and Westpac Banking Corporation slid 1 cent to $24.86.

Macquarie Group jumped 21 cents to $26.92 and Perpetual Limited declined 31 cents to $27.

David Jones Limited down 1 cent $2.43 and Wesfarmers increased 11 cents to $34.41. Billabong International Limited closed unchanged at $1.36. Breville Group added 3 cents to $5.48. Harvey Norman slipped 7 cents to $2.08.

Toll Holdings gained 4 cents to $4.55, Leighton decreased 5 cents to $17 and property developer Mirvac Group closed unchanged at $1.35.

Aristocrat Leisure, the gambling machines maker, declined 2.2% to $2.70 after it said first half net profit surged 40% to $34.7 million.

Qantas slid 3 cent to $1.16 and Flight Centre advanced 26 cents to $23.96 and Virgin Australia soared 2.5 cents or 5.2% to 50.5 cents after it said it will increase domestic capacity and returned to fiscal year profitability with net income of $22.8 million.

QR National slipped 4 cents to $3.56 and Telstra climbed 6 cents to $3.82.