Australian Stocks Drift Lower, Home Prices Decline

Marcus Jacob
01 Nov, 2012
New York City

Australian stocks drifted lower after weak opening despite the evidence that Chinese manufacturing activities are stabilizing. Home prices in Australian cities declined for the first time in five months.

[R]7:30 PM Sydney – Australian stocks drifted lower after weak opening despite the evidence that Chinese manufacturing activities are stabilizing. Home prices in Australian cities declined for the first time in five months.[/R]

The benchmark index in Sydney opened lower and drifted lower in the afternoon trading and home price index in cities in Australia fell. Stocks in resource, media and banking sector were under pressure.

The ASX 200 index declined 59.40 or 1.3% to 4,457.60 and the broader All Ordinaries dropped 55.46 or 1.2% to 4,479.90.

Australian dollar closed to $1.0399.

Australian metropolitan home prices decreased 1% in October, a first monthly decline after four months of increase, according to the data released by the RP Data Rismark. The prices in the cities increased 1.4% in September.

In the month, prices in Sydney fell 0.9% and in Brisbane declined 1.1%.

China’s statistical bureau said factory orders finally stabilized in October after the growth declined for twelve months in a row. China has been managing soft landing as the domestic demand falters and exports to euro zone falls drastically in the three quarters.

Stock Movers

BHP Billiton Limited declined 43 cents to $33.82 and Rio Tinto Limited plummeted 69 cents to $56.25.

Lynas Corporation Limited slid 2 cents to 71 cents and Iluka Resources dropped 31 cents to $9.61. Fortescue Metals decreased 9 cents to $3.99.

Mirabela Nickel closed unchanged at 45 cents and Newcrest Mining slumped 19 cents to $26.24. Kingsgate slipped 5 cents to $5.44 and Whitehaven Coal decreased 5 cents to $3.

Transfield Services closed unchanged at $1.60, engineering contractors WorleyParsons gained 8 cents to $24.75 and Monadelphous Group declined 42 cents to $20.68.

Oil Search Limited slipped 7 cents to $7.37 and Santos Limited slid 16 cents to $11.35 and Woodside Petroleum dropped 50 cents to $33.90.

Origin Energy Limited slumped 18 cent to $11.18.

Arrium dropped 10 cents to 68.5 cents after the Asia based suitor decided to walk away from bidding for the company.

Boral, the building products supplier, fell 2 cents to $3.57 after the company said Australian residential housing market is still in a “tough” spot.

Seven West Media lowered 5 cents to $1.17 and News Corp, the controversial global entertainment group, decreased 23 cents to $23.43.

Harvey Norman Holdings fell 2 cents $1.88, Woolworths declined 40 cents to $29.01 and Kathmandu slid 3 cents to $1.39.

David Jones Limited decreased 2 cents to $2.65 and Wesfarmers plummeted 63 cents to $34.14. Breville Group decreased 12 cents to $5.86. Billabong International Limited slipped 3.5 cents to 85 cents.

Commonwealth Bank of Australia dropped 48 cents to $57.27, Bank of Queensland slumped 12 cents to $7.46 and ANZ declined 12 cents to $25.33.

Macquarie Group dropped 40 cents to $31.50 and Perpetual Limited plummeted $1.20 to $26.74. National Australia Bank declined 77 cents to $25.02. Westpac slumped 37 cents to close at $25.14.

Toll Holdings slipped 6 cents to $4.38, Leighton slid 39 cents to $17.51 and property developer Mirvac Group lowered 2 cents to $1.48. Westfield Group decreased 7 cents to $10.59.

Qantas down 4 cents to $1.29, Flight Centre slipped 21 cents to $26.39 and Virgin Australia slid 1 cent to 48 cents.

QR National fell 2 cents to $3.72 and Telstra slipped 5 cents to $4.09.

Treasury Wine Estate decreased 4 cents to $4.90 after the company acquired full control of New Zealand based Rapaura Vinters winery and warehouse.