Strengthening Cyclone Worries Miners in Western Australia

Marcus Jacob
11 Jan, 2013
New York City

Australian stocks closed lower and the dollar traded near its three months high. Mining companies fell after a storm approached near Western Australian ports threatening mine closures and iron ore shipment disruptions.

[R]6:30 PM Sydney – Australian stocks closed lower and the dollar traded near its three months high. Mining companies fell after a storm approached near Western Australian ports threatening mine closures and iron ore shipment disruptions.[/R]

Australian stocks closed lower and cyclone worries dragged down resource and iron ore mining stocks.

International markets also weighed on Sydney trading. Latest inflation in China increased 2.6% in December, lowering expectation of another stimulus. Separately, Japan released a stimulus plan of $226 billion.

The ASX 200 index slipped 13.50 to 4,709.50 and the broader All Ordinaries decreased 11.38 to 4,733.77. For the week, the ASX 200 index slid 0.3%.

Australian dollar advanced to $1.0572.

In trading, stock turnover increased to 1.44 billion shares worth $3.2 billion and 492 stocks closed higher, 402 declined and 373 were unchanged.

Stock Movers

Mining companies declined after Cyclone Narelle strengthened to a Category 4 storm and closing down ports handling most of iron ore exports from Australia and cut supplies of natural gas and oil.

BHP Billiton Limited dropped 73 cents to $36.68 and Rio Tinto Limited decreased $1.30 to $65.80. Fortescue Metals slumped 12 cents to $4.73.

Newcrest Mining increased 19 cents to $21.75. Kingsgate gained 3 cents to $4.63 and Whitehaven Coal slipped 7 cents to $3.39.

Transfield Services down 2 cents to $1.90 and engineering contractor WorleyParsons dropped 36 cents to $23.95. Monadelphous Group slid 24 cents to $24.89 and Downer EDI lowered 6 cents to $4.03.

Lend Lease closed unchanged at $9.74.

Oil Search Limited closed unchanged at $6.96 and Santos Limited up 2 cents to $11.50.

Woodside Petroleum slid 6 cents to $34.67 and Origin Energy Limited down 1 cent to $11.81.

Woolworths increased 17 cents to $30.19 and Kathmandu lowered 2 cents to $1.65.

David Jones Limited slipped 8 cents to $2.28 and Wesfarmers gained 12 cents to $37.59. Breville Group increased 21 cents to $6.39.

Apparel and general goods retailers are lowering prices on international brands to match the lower prices offered by online retailers and prices at international locations. International brands account for 30% of products sold at Myer and more than 45% for David Jones.

Retailers are lowering prices on international brands to match prices offered at foreign locations and stem the affect of strong dollar.

Billabong, the surfwear retailer appointed a former Network Ten executive as its new chief finance officer. Two private equity firms, TPG Private Capital and Bain Capital withdrew their takeover bids last year.

Commonwealth Bank of Australia declined 23 cents to $61.38 and Bank of Queensland up 1 cent to $7.57 and ANZ added 10 cents to $25.25. National Australia Bank increased 14 cents to $25.57. Westpac slid 2 cents to $26.58.

Toll Holdings up 2 cents to $4.89, Leighton declined 23 cents to $18.65 and property developer Mirvac Group added 1 cent to $1.55.

Westfield Group gained 1 cent to $10.78.