Australian and Asian Markets Sell-Off

Marcus Jacob
21 Dec, 2012
New York City

Australian market indexes traded lower after Asian market sold off and commodities prices trended lower after U.S. lawmakers failed to resolve differences. Origin Energy agreed to sell its stake in a oil and condensate project for $287 million. Fairfax agreed to acquire tech investment firm.

[R]7:30 PM Sydney – Australian market indexes traded lower after Asian market sold off and commodities prices trended lower after U.S. lawmakers failed to resolve differences. Origin Energy agreed to sell its stake in a oil and condensate project for $287 million. Fairfax agreed to acquire tech investment firm.[/R]

Australian stocks sold off after markets in Asia reacted first to the failure of U.S. lawmakers to resolve budget negotiations that could raise the prospect of a recession.

Resource stocks led the decliners on the worries that the U.S. recession could dampen the demand for commodities in China and other fast growing nations in Asia.

The ASX 200 index slipped 10.50 or 0.2% to 4,623.60 and the broader All Ordinaries decreased 11.41 to 4,635.22. For the week, the ASX 200 index gained 0.9%.

Australian dollar backed off from its 3-month high to $1.041.

In stock trading, turnover increased to 2.37 billion shares worth $8.3 billion and 411 stocks increased, 546 decreased and 352 closed unchanged.

Stock Movers

BHP Billiton Limited dropped 34 cents to $36.70 and Rio Tinto Limited declined 56 cents to $64.74.

Lynas Corporation Limited gained 0.5 cents to 60 cents, Iluka Resources increased 4 cents to $8.80 and Fortescue Metals slumped 12 cents to $4.38.

Mirabela Nickel soared 2.5 cents or 5.4% to 49 cents and Newcrest Mining slid 2 cents to $22.47. Kingsgate slumped 17 cents to $4.36.

Whitehaven Coal slipped 6 cents to $3.44 after extending gains for the two day after the company confirmed that it held talks with China based Shenhua Group but no offer was discussed.

Transfield Services lowered 3 cents to $1.86 and engineering contractors WorleyParsons down 6 cents to $23.49.

Monadelphous Group climbed 59 cents to $24. Downer EDI slid 2 cents to $3.91 after the company agreed to a settlement of S$50 million for a tunnel dispute in Singapore.

Lend Lease decreased 15 cents to $9.08.

Oil Search Limited lowered 2 cents to $6.97 and Santos Limited increased 18 cents to $10.90.

Woodside Petroleum jumped 24 cents to $33.75 after company faced legal challenges for the process of acquiring environmental permits for its controversial Browse gas hub project in Western Australia.

Origin Energy Limited slumped 14 cents to $11.57.

Seven West Media slid 5 cents to $1.51. Harvey Norman Holdings down 3 cents to $1.84.

Woolworths slipped 5 cents to $29.44 and Kathmandu slid 1 cent to $1.58.

David Jones Limited lowered 5 cents to $2.33 and Wesfarmers down 1 cent to $36.60. Breville Group decreased 7 cents to $6.37.

Billabong International Limited gained 2.5 cents to 82.5 cents.

Commonwealth Bank of Australia climbed 49 cents to $62 and Bank of Queensland up 2 cents to $7.35 and ANZ advanced 15 cents to $24.95.

Macquarie Group slipped 4 cents to $34.86 and Perpetual Limited slumped 15 cents to $34.19. National Australia Bank increased 6 cents to $24.94. Westpac jumped 20 cent to $26.17.

Toll Holdings closed unchanged at $4.53, Leighton climbed 42 cents to $17.84 and property developer Mirvac Group slid 4 cents to $1.48.

Westfield Group decreased 6 cents to $10.56.

Qantas closed unchanged at $1.46, Flight Centre dropped 34 cents to $26.20 and Virgin Australia increased 1 cent to 41.5 cents.

Telstra slid 1 cent to $4.34.