Australian Auto Sales Jump, Consumer Sentiment Rises

Marcus Jacob
16 Jan, 2013
New York City

Australian markets closed higher after auto sales jumped in December and banks gained. The latest read on consumer sentiment showed a positive bias. Boral, construction material company plans to trim 700 jobs.

[R]6:30 PM Sydney – Australian markets closed higher after auto sales jumped in December and banks gained. The latest read on consumer sentiment showed a positive bias. Boral, construction material company plans to trim 700 jobs.[/R]

Market sentiment in Sydney was positive after auto sales were ahead of expectations in December and banks closed higher.

The ASX 200 index climbed 21.80 or 0.5% to 4,738.40 and the broader All Ordinaries increased 22.01 to 4,764.99.

The Australian dollar was slightly under the pressure after the release of new loan approval data yesterday but closed nearly unchanged at $1.0553.

Consumer sentiment for January increased 0.6 to 100.6, according to the Westpac Melbourne Institute Index. Reading above 100 indicates optimistic surpasses pessimistic sentiment.

Auto Sales Surge

Auto sales in December increased 2.2% from the previous month to 98,264 after adjusting for seasonality, according to the latest data released by the Australian Bureau of Statistics.

From a year ago month, sales surged 17.9% in December.

Passenger car sales increased 1.2% and sports utility vehicles sales increased 5.8% to 26,502.

Earlier in the month industry association said for all of 2012 sales rose to 1.11 million, an increase of 10.3% from a year ago. December sales increased 15.7% to 95,427 units.

Stock Movers

Boral soared 10% to $4.80 after the construction material company said it plans to cut 700 jobs as it restructures its business.

BHP Billiton Limited slipped 28 cents to $36.25 and Rio Tinto Limited slid 35 to $65.55. Fortescue Metals decreased 7 cents $4.57.

Newcrest Mining climbed 27 cents to $22.65. Kingsgate increased 11 cents to $4.98 and Whitehaven Coal gained 8 cents to $3.45.

Transfield Services closed unchanged at $1.88 and engineering contractor WorleyParsons advanced 27 cents to $24.07. Monadelphous Group slumped 18 cents to $24.52 and Downer EDI closed unchanged at $4.09.

Lend Lease closed unchanged at $9.77.

Oil Search Limited up 1 cent to $6.97 and Santos Limited slipped 9 cents to $11.64.

Woodside Petroleum rose 3 cents to $35.20 and Origin Energy Limited lowered 6 cents to $11.89.

Woolworths gained 14 cents to $30.41 and Kathmandu slid 4 cents to $1.69.

David Jones Limited added 4 cents to $2.34 and Wesfarmers increased 20 cents to $37.83. Breville Group added 5 cents to $6.40.

Billabong slipped 1.5 cents to 96.5 cents after the struggling surfwear retailer received second takeover proposal from that matched the offer from its U.S. based chain executive Paul Naude and New York based leveraged buyout company Sycamore Partners.

VF Corp and Altamont Capital Partners offered $1.10 a share or $556 million in cash for the retailer.

Commonwealth Bank of Australia jumped 54 cents to $62.29 and Bank of Queensland gained 12 cents to $7.89 and ANZ up 9 cents to $25.36. National Australia Bank added 14 cents to $25.85. Westpac increased 7 cents to $26.43.

Toll Holdings rose 1 cent to $4.95, Leighton climbed 35 cents to $19.20 and property developer Mirvac Group added 2 cents to $1.58.

Westfield Group increased 9 cents to $10.99.