Australian Markets, Dollar Fall; Qantas to Cut 500 Jobs

Marcus Jacob
08 Nov, 2012
New York City

Australian benchmark index declined 0.7% tracking lower world markets. Resource stocks led the decliners. Qantas said it will eliminate 500 jobs in Australia as it cuts one aircraft maintenance hub.

[R]7:30 PM Sydney – Australian benchmark index declined 0.7% tracking lower world markets. Resource stocks led the decliners. Qantas said it will eliminate 500 jobs in Australia as it cuts one aircraft maintenance hub.[/R]

Australian stock market traded lower following the weakness in New York and Europe on the growing worries of the U.S. budget negotiations and debt impasse in the euro zone.

The ASX 200 index dropped 32.70 or 0.7% to 4,483.80 and the broader All Ordinaries slumped 31.99 to 4,502.18.

Australian dollar inched lower to $1.0422.

In trading, 1.67 billion shares changed hands worth $5.39 billion and 328 stocks closed higher, 583 lower and 376 were unchanged.

Stock Movers

BHP Billiton Limited declined 31 cent to $34.67 and Rio Tinto Limited plummeted 65 cents to $59.35.

Lynas Corporation Limited surged 8.5 cents or 11.8% to 80.5 cents after the company won a court ruling in Malaysia to start a rare earth plant that has raised health and safety concerns from local activists.

Iluka Resources dropped 37 cents to $9.18 and Fortescue Metals slipped 11 cents to $3.94.

Mirabela Nickel up 0.5 cents to 44 cents and Newcrest Mining slumped 31 cents to $26.39. Kingsgate decreased 8 cents to $5.49 and Whitehaven Coal slipped 8 cents to $2.84.

Transfield Services rose 2 cents to $1.59 after the company won a $200 million contract to provide maintenance and operations services to Queensland coal seam gas controlled by QGC.

Engineering contractors WorleyParsons slid 17 cents to $24.53 and Monadelphous Group decreased 7 cents to $20.73.

Oil Search Limited slumped 9 cents to $7.40 and Santos Limited slipped 9 cents to $11.27 and Woodside Petroleum dropped 34 cents to $34.16.

Origin Energy Limited decreased 14 cent to $11.05.

Seven West Media lowered 3 cents to $1.09.

Harvey Norman Holdings down 1 cent to $1.80 after quarterly sales dropped 10% and profit declined 20%.

Woolworths decreased 6 cents to $28.84 and Kathmandu slid 1 cent to $1.34.

David Jones Limited lowered 2 cents to $2.44 and Wesfarmers slipped 6 cents to $34.30. Breville Group slipped 4 cents to $5.77. Billabong International Limited dropped 3 cents to 84.5 cents.

Commonwealth Bank of Australia climbed 38 cents to $58.18, Bank of Queensland up 1 cent to $7.47 and ANZ decreased 15 cents to $25.15.

Macquarie Group dropped 44 cents to $31.30 and Perpetual Limited gained 8 cents to $29.34. National Australia Bank slumped 12 cents to $24.87. Westpac increased 7 cents to $25.93.

Toll Holdings closed unchanged at $4.34, Leighton up 1 cent to $17.54 and property developer Mirvac Group slid 1 cent to $1.47.

Westfield Group declined 11 cents to $10.49.

Qantas slid 2 cents to $1.28 and the struggling airline said it will eliminate 150 staff positions and 250 contractor positions as the company initiates the plan to reduce heavy aircraft maintenance bases in Australia to one from two.

Flight Centre dropped 17 cents to $26.94 and Virgin Australia down 0.5 cents to 50.5 cents.

QR National lowered 3 cents to $3.65 and Telstra slid 3 cents to $4.11.