Australian Home Loans Approvals Fall, Credit Card Balance Fall Record 2.3%

Marcus Jacob
14 Jan, 2013
New York City

Australian stocks trimmed gains and new home loans approvals declined in November. Job advertisements fell for the tenth month in a row as businesses restrain from hiring on record strength in the dollar. Consumers repay debt to lower debt and repair personal balance sheet.

[R]6:30 PM Sydney – Australian stocks trimmed gains and new home loans approvals declined in November. Job advertisements fell for the tenth month in a row as businesses restrain from hiring on record strength in the dollar. Consumers repay debt to lower debt and repair personal balance sheet.[/R]

Stocks in Sydney looked for direction to international markets and trimmed gains at close.

New home loans approval declined in November, surprising most economists and one of the barometers of the economic growth, job ad placements fell for the tenth month in a row.

In addition, iron ore prices in the spot market declined to $154.20 a ton from the peak of $158 after Chinese steelmakers fail to pass on higher prices to customers.

The ASX 200 index increased 10.20 to 4,719.70 and the broader All Ordinaries gained 11.95 to 4,745.72.

The Australian dollar was slightly under the pressure after the release of new loan approval data but closed nearly unchanged at $1.0562.

The Australian Bureau of Statistics said number of new home loan approvals decreased 0.5% to 46,199 in November.

Separately, job advertisements fell for the tenth month in December, according to the latest survey released by ANZ.

Newspaper ads declined 0.4% and online ads dropped 3.9% from the previous month and plunged 15.3% from a year ago.

Reserve Bank of Australia said today average credit card balance declined by a record 2.3% from a year ago in November. Commonwealth Bank also said that 60% of its credit card customers paid on time outstanding debt in full and did not incur charges.

Stock Movers

BHP Billiton Limited slipped 11 cents to $36.57 and Rio Tinto Limited decreased 19 to $65.99. Fortescue Metals closed unchanged at $4.73.

Newcrest Mining gained 18 cents to $21.93. Kingsgate climbed 11 cents to $4.74 and Whitehaven Coal added 4 cents to $3.43.

Transfield Services up 1 cent to $1.91 and engineering contractor WorleyParsons declined 38 cents to $23.57. Monadelphous Group increased 10 cents to $24.99 and Downer EDI rose 5 cents to $4.08.

Lend Lease added 1 cent to $9.75.

Oil Search Limited gained 2 cents to $6.98 and Santos Limited up 6 cents to $11.56.

Woodside Petroleum increased 18 cents to $34.85 and Origin Energy Limited gained 4 cent to $11.85.

Woolworths added 4 cents to $30.23 and Kathmandu rose 2 cents to $1.68.

David Jones Limited up 1 cent to $2.29 and Wesfarmers gained 1 cent to $37.60. Breville Group increased 6 cents to $6.45.

Commonwealth Bank of Australia jumped 25 cents to $61.63 and Bank of Queensland increased 18 cents to $7.75 and ANZ lowered 4 cents to $25.21. National Australia Bank gained 17 cents to $25.74. Westpac dropped 8 cents to $26.50.

Toll Holdings up 3 cents to $4.92, Leighton climbed 18 cents to $18.83 and property developer Mirvac Group added 2 cents to $1.58.

Westfield Group increased 7 cents to $10.85.