Australian Markets Ease on Asian Data, Kathmandu Net Falls 11%

Marcus Jacob
20 Sep, 2012
New York City

Australian markets lost ground after the latest economic data from China and Japan put investors on the defensive. Fortescue Metals agreed to pay $715 million royalty to Leucadia National. Kathmandu suggested better outlook in the current fiscal year.

[R]7:30 PM Sydney – Australian markets lost ground after the latest economic data from China and Japan put investors on the defensive. Fortescue Metals agreed to pay $715 million royalty to Leucadia National. Kathmandu suggested better outlook in the current fiscal year.[/R]

Australian markets lost ground after the latest economic data from China and Japan indicated widespread slowdown.

Japan said its exports to Europe and Asia are weakening and latest HSBC survey indicated that China’s manufacturing sector continued to weaken for the eleventh-month in a row in September.

The ASX 200 index slipped 14.10 to 4,404.30 and the broader All Ordinaries decreased 20.57 to 4,419.79.

Stock Movers

Fortescue Metals decreased 9 cents to $3.60 after the iron ore miner agreed to pay US$715 million in royalties to Leucadia National over a legal dispute.

BHP Billiton Limited dropped 52 cents to $33.70 and, Rio Tinto Limited declined $1.22 to $56.58. Lynas Corporation Limited slipped 1.5 cents to 88 cents and Iluka Resources slumped 45 cents or 4% to $10.80.

Mirabela Nickel lowered 1.3% to 37 cents and Newcrest Mining decreased 18 cents to $29.78. Kingsgate gained 11 cents to $5.98 and Whitehaven Coal slid 2 cents to $3.07.

Transfield Services up 1 cent to $1.78; engineering contractors WorleyParsons climbed 28 cents to $27.59 and Monadelphous Group increased 9 cents to $19.47.

Oil Search Limited slumped 10 cents to $7.63 and Santos Limited declined 38 cents to $11.43 and Woodside Petroleum plummeted 75 cents to $33.95. Sundance Energy added 0.5 cents to 75.5 cents.

Seven West Media closed unchanged at $1.25, Ten Network up 0.5 cents to 35.5 cents and Fairfax Media added 1 cent to 46.5 cents and the controversial News Corp. jumped 32 cents to $24.03.

Harvey Norman Holdings down 1 cent to $1.99, Woolworths advanced 23 cents to $28.96 and Kathmandu up 1 cent to $1.38.

David Jones Limited extended gains for the second day by 9 cents to $2.35 after it reported better than expected earnings and Wesfarmers slumped 11 cents to $34.72. Breville Group added 1 cent to $5.30.

Kathmandu increased 1 cent to $1.38 after the outdoors equipment retailer reported sales in the year ending in July increased 13.4% to NZ$347.1 million. Net income declined 11% from a year ago to NZ$34.9 million.

The retailer opened 10 new stores and total number of stores increased to 120. Same store sales growth across all stores was 5.7% in the year and was the strongest at locations in New Zealand at 9.2% followed by 6.5% in Australia and a decline of 7.7% in the UK.

Billabong International Limited plunged 11 cents or 7.3% to $1.34 after one of the private equity firms considering a takeover offer withdrew from the race.

Commonwealth Bank of Australia declined 38 cents to $54.97 and Bank of Queensland slid 4 cents to $7.71. ANZ increased 19 cents to $24.74. National Australia Bank closed unchanged at $25.53 and Westpac Banking Corporation dropped 21 cents to $24.29.

Macquarie Group up 2 cents to $29.35 and Perpetual Limited gained 9 cents to $27.20.

Toll Holdings added 1 cent to $4.50, Leighton slumped 14 cents to $16.51, and property developer Mirvac Group closed unchanged at $1.41.

Qantas increased 3 cents to $1.27; Flight Centre dropped 40 cents to $23.50 and Virgin Australia added 0.5 cents to 43 cents.

QR National slid 3 cents to $3.42 and Telstra gained 4 cents to $3.86.