Australian Markets Worry Shifting Priorities in China

Marcus Jacob
09 Nov, 2012
New York City

Australian stocks closed lower and indexes closed flat for the week. Once in a decade change in Chinese leadership prompted worries of shifting priorities to consumption from infrastructure development.

[R]7:30 PM Sydney – Australian stocks closed lower and indexes closed flat for the week. Once in a decade change in Chinese leadership prompted worries of shifting priorities to consumption from infrastructure development.[/R]

The late really in Australian stocks trimmed losses in the session but market participants were cautious on the outlook for the economy and the dollar.

The ASX 200 index slipped 21.80 or 0.5% to 4,462 and the broader All Ordinaries decreased 19.72 to 4,482.46. For the week, the ASX 200 index inched up 0.04%.

Australian dollar inched lower to $1.0422.

Reserve Bank of Australia downgraded its economic growth outlook in 2013 to a range between 2.25% to 3.25% from the previous range of 2.5% to 3.5% released in February.

The central bank lowered its economic outlook after dollar remained at 27-year high and export prices for commodities declined and the government put more spending on hold.

However, the RBA said it will take time for inflation to come down from 3.25% to its target range between 2% and 3%.

Stock Movers

BHP Billiton Limited slumped 21 cent to $34.46 and Rio Tinto Limited declined 66 cents to $58.69.

Lynas Corporation Limited closed unchanged at 80.5 cents, Iluka Resources plunged 51 cents or 5.6% to $8.67 and Fortescue Metals slid 1 cent to $3.93.

Mirabela Nickel fell 0.5 cents to 43.5 cents and Newcrest Mining gained 9 cents to $26.48. Kingsgate up 3 cents to $5.52 and Whitehaven Coal increased 4 cents to $2.88.

Transfield Services added 1 cent to $1.60, engineering contractors WorleyParsons climbed 53 cents to $25.06 and Monadelphous Group up 1 cent to $20.74.

Oil Search Limited down 4 cents to $7.36 and Santos Limited closed unchanged at $11.27 and Woodside Petroleum gained 5 cents to $34.21.

Origin Energy Limited tumbled 63 cent or 5.7% to $10.42 after the company lowered its net profit outlook range.

Seven West Media added 2 cents to $1.11.

Harvey Norman Holdings up 2 cents to $1.82 after quarterly sales dropped 10% and profit declined 20%.

Woolworths slipped 5 cents to $28.79 and Kathmandu down 1 cent to $1.33.

David Jones Limited gained 2 cents to $2.46 and Wesfarmers closed unchanged at $34.30. Breville Group increased 6 cents to $5.83. Billabong International Limited slid 0.5 cents to 84 cents.

Commonwealth Bank of Australia climbed 64 cents to $58.82 and Bank of Queensland added 3 cents to $7.50 and ANZ gained 19 cents to $24.56.

Macquarie Group slid 14 cents to $31.16 and Perpetual Limited up 3 cents to $29.37. National Australia Bank dropped $1.06 to $23.81. Westpac increased 80 cents to $25.17.

Toll Holdings closed unchanged at $4.34, Leighton declined 27 cents to $17.27 and property developer Mirvac Group slid 2 cents to $1.45.

Westfield Group lowered 4 cents to $10.45.

Qantas down 1 cent to $1.26 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 advanced 16 cents to $27.10 and Virgin Australia up 0.5 cents to 51 cents.

QR National added 3 cents to $3.68 and Telstra closed unchanged at $4.11.