Australian Markets Flat; IAG Takes Loss on UK Sale, Caltex Estimates Profit

Marcus Jacob
14 Dec, 2012
New York City

Australian stocks and dollar held ground and a private survey in China showed an improving business climate. APN News Media plunged after it issued profit warning. Caltex Australia estimated to rebound to profit in the current year. IAG plans to take $240 million charge on the sale of a UK unit.

[R]7:30 PM Sydney – Australian stocks and dollar held ground and a private survey in China showed an improving business climate. APN News Media plunged after it issued profit warning. Caltex Australia estimated to rebound to profit in the current year. IAG plans to take $240 million charge on the sale of a UK unit.[/R]

Australian market index closed flat and traded near the high of the year after a private survey in China reported improving business climate but budget negotiations in the U.S. stalled and the euro zone leaders struggled to establish the size of rescue fund for future bank bailouts.

The ASX 200 index edged up 0.30 to 4,583.10 and the broader All Ordinaries gained 2.11 to 4,595.06. For the week, the ASX 200 index increased 0.7%.

Australian dollar backed off from its 3-month high to $1.053.

In trading, 1.36 billion shares worth $3.1 billion changed hands and 449 stocks traded higher, 447 declined and 361 closed unchanged.

Stock Movers

BHP Billiton Limited increased 7 cents to $36.07 and Rio Tinto Limited gained 25 cents to $63.

Lynas Corporation Limited slipped 2 cents to 56.5 cents, Iluka Resources slumped 20 cents to $7.96 and Fortescue Metals increased 6 cents to $4.31.

Mirabela Nickel down 0.5 cents to 46.5 cents and Newcrest Mining jumped 31 cents to $23.85. Kingsgate gained 5 cents to $4.74 and Whitehaven Coal fell 5 cents to $3.18.

Transfield Services up 4 cents to $1.87 and engineering contractors WorleyParsons dropped 39 cents to $23.

Monadelphous Group increased 23 cents to $22.50. Downer EDI slumped 4 cents to $3.82 after the company agreed to a settlement of S$50 million for a tunnel dispute in Singapore.

Lend Lease closed unchanged at $8.98.

Oil Search Limited slid 3 cents to $7.13 and Santos Limited declined 14 cents to $11.02.

Woodside Petroleum down 8 cents to $34.32 and Origin Energy Limited decreased 7 cents to $11.26.

Caltex Australia increased 27 cents to $19.20 after the oil refiner estimated profit in the current year on strong oil products sale and better refining margins.

Seven West Media closed unchanged at $1.63. Harvey Norman Holdings slipped 4 cents to $1.85.

APN News & Media plunged 16% to 26.5 cents after the company issued a profit warning and said publishing revenues have declined 10% since June.

Coca-Cola Amatil lowered 3 cents to $13.30 after the company estimated lower than expected earnings increase of 5% increase in 2012.

Woolworths slumped 5 cents to $29.48 and Kathmandu slid 1 cent to $1.56.

David Jones Limited down 1 cent to $2.49 and Wesfarmers gained 8 cents to $35.93. Breville Group decreased 7 cents to $6.28.

Billabong International Limited lowered 0.5 cents to 93.5 cents.

Insurance Australia Group declined 9 cents or 2% to $4.72 after the company said it will sell its money losing UK arm and take a charge of $240 million.

Commonwealth Bank of Australia climbed 38 cents to $61.66 and Bank of Queensland slipped 3 cents to $7.13 and ANZ down 3 cents to $24.65.

ANZ followed its competitors and lowered its variable home loan rate by 20 basis points, less than 25 basis points cut offered by the Reserve Bank few days earlier. The bank stands to profit from its delayed rate cut and was the last among for major banks in lowering its variable rates.

Macquarie Group decreased 7 cents to $33.33 and Perpetual Limited jumped 23 cents to $33.99. National Australia Bank closed unchanged at $24.60. Westpac added 1 cent to $25.99.

Toll Holdings slipped 4 cents to $4.59, Leighton down 2 cents to $16.82 and property developer Mirvac Group closed unchanged at $1.51.

Westfield Group gained 4 cents to $10.64.

Qantas slid 1 cent to $1.39, Flight Centre climbed 19 cents to $26.69 and Virgin Australia lowered 0.5 cents to 42 cents.

Telstra closed decreased 1 cent to $4.25.