Australian Trade Gap Narrows, Westpac Cash Profit Up 5%

Marcus Jacob
05 Nov, 2012
New York City

Australian stocks closed higher on the expectations of a rate cut after the central bank meeting on Tuesday. Australian trade deficit narrowed in September after imports fell more than exports. Seasonally adjusted retail sales in the month declined 0.5%.

[R]7:30 PM Sydney – Australian stocks closed higher on the expectations of a rate cut after the central bank meeting on Tuesday. Australian trade deficit narrowed in September after imports fell more than exports. Seasonally adjusted retail sales in the month declined 0.5%.[/R]

The benchmark index in Sydney opened lower and dropped 0.3% in the first hour of trading but scaled back in a steady trading to close higher.

The ASX 200 index gained 14 to 4,474.10 and the broader All Ordinaries increased 10.23 to 4,493.57.

Australian dollar closed to $1.0355.

In trading, 1.3 billion shares worth $3.1 billion changed hands today and 553 stocks increased, 404 decreased and 353 closed unchanged.

Australia’s seasonally adjusted trade deficit narrowed in September to $1.46 billion from the revised deficit of $1.88 billion in August, according to the latest data released by the Australian Bureau of Statistics.

Exports declined 1% and imports fell 2% in September from the previous months.

Separately, the statistics bureau said retail sales increased 0.5% in September and in three months to the month sales decreased 0.1% to $63.80 billion after adjusting for seasonality.

High dollar has driven many consumers to search for bargains online and shifted spending overseas and an employment worry has also dampened the retail spending.

Stock Movers

BHP Billiton Limited climbed 40 cents to $34.82 and Rio Tinto Limited jumped $1.50 to $58.88.

Lynas Corporation Limited down 1.5 cents to 70 cents and Iluka Resources jumped 22 cents to $10. Fortescue Metals gained 7 cents to $4.08.

Mirabela Nickel lowered 0.5 cents to 45 cents and Newcrest Mining slumped 41 cents to $26.79. Kingsgate slid 3 cents to $5.44 and Whitehaven Coal decreased 9 cents to $2.89.

Transfield Services down 1 cent to $1.61, engineering contractors WorleyParsons decreased 21 cents to $24.62 and Monadelphous Group dropped 25 cents to $20.82.

Oil Search Limited gained 7 cents to $7.44 and Santos Limited increased 6 cents to $11.37 and Woodside Petroleum advanced 21 cents to $34.22.

Origin Energy Limited slipped 14 cent to $11.

Seven West Media slid 2 cent to $1.14 and News Corp, the controversial global entertainment group, slumped 18 cents to $23.48.

Harvey Norman Holdings dropped 1 cent $1.85, Woolworths gained 13 cents to $28.86 and Kathmandu decreased 7 cents to $1.30.

David Jones Limited declined 11 cents to $2.49 and Wesfarmers climbed 24 cents to $34.25. Breville Group added 1 cent to $5.83. Billabong International Limited lowered 0.5 cents to 83.5 cents.

Commonwealth Bank of Australia gained 3 cents to $57.40, Bank of Queensland up 3 cents to $7.42 and ANZ increased 1 cent to $25.16.

Macquarie Group jumped 48 cents to $31.14 and Perpetual Limited climbed 51 cents to $28.71. National Australia Bank lowered 3 cents to $24.84.

Westpac advanced 32 cents to $25.35 after the bank reported cash profit in the full year to September increased 5% to $6.6 billion and net profit fell 15% to $5.97 billion on $165 million retrospective tax charge related to St George takeover.

Loan impairment charges increased 22% to $1.2 billion as the bank wrote off more bad loans and did not indicate a growing financial stress according to chief financial offider Phil Coffey. The bank declared dividend of 84 cents a share.

Australia’s four largest banks are expected to deliver combined annual profit of more than $25 billion, topping the last year’s record profit but the growth in net income is expected to slow.

Toll Holdings down 3 cents to $4.38, Leighton added 3 cents to $17.42 and property developer Mirvac Group up 1 cent to $1.48.

Qantas closed unchanged at $1.29, Flight Centre dropped 13 cents to $26.75 and Virgin Australia closed unchanged at 48.5 cents.

QR National slipped 6 cents to $3.68 and Telstra down 1 cent to $4.08.

Treasury Wine Estate slumped 6 cents to $4.94 after the company acquired full control of New Zealand based Rapaura Vinters winery and warehouse.