Australian Resource Stocks Weak on 2.4% Fall in Shanghai

Marcus Jacob
28 Mar, 2013
New York City

Australian resource stocks led the market decline after a sharp fall in Shanghai trading. Market index in Shanghai dropped 2.4% after the largest bank by asset reported a decline in profit growth. Nufarm plunged on weak results. Leighton sold stake in telecom companies worth $620 million.

[R]6:30 PM Sydney – Australian resource stocks led the market decline after a sharp fall in Shanghai trading. Market index in Shanghai dropped 2.4% after the largest bank by asset reported a decline in profit growth. Nufarm plunged on weak results. Leighton sold stake in telecom companies worth $620 million.[/R]

Australian markets traded lower tracking sharp losses in Shanghai.

Market index in Shanghai declined 2.4% after the largest bank reported a slowdown in profit growth. The weakness was also prompted by market worries that regulators are likely to tighten lending rules dragging the demand for new homes.

The ASX 200 index slipped 28.50 or 0.6% to 4,966.50 and the broader All Ordinaries decreased 27.18 to 4,979.87.

Australian dollar traded near one-month high and closed at $1.044

Resource sector stocks fell sharply on the worries that a slowdown in Chinese construction will decrease the demand for raw materials.

Stock Movers

Rio Tinto dropped 62 cents to $57.20 and BHP fell 43 cents to $32.76. Fortescue Metals Group slid 4 cents to $3.94.

Woodside Petroleum slumped 38 cents to $35.82 and Santos dropped 23 cents to $12.43.

Newcrest Mining plunged $1.82 or 8.3% to $20.05, Kingsgate slid 1 cent to $3.89 and Whitehaven Coal up 2 cents to $2.12.

David Jones Limited fell 3 cents to $2.99 and Breville Group down 1 cent to $5.90. Billabong slipped 2 cents to 73 cents and Globe International closed unchanged at 40 cents.

Woolworths decreased 36 cents to $33.79. Kathmandu rose 2 cents to $2.05.

Toll Holdings climbed 17 cents to $5.93, Leighton slid 8 to $20.54 and Mirvac Group closed unchanged at $1.62. Lend Lease gained 5 cents to $10.20.

Leighton declined 8 cents to $20.54 and sold a majority stake in three telecom companies to a Canadian pension fund for $620 million.

Westpac fell 2 cents to $30.76, Commonwealth declined 0.5% to $68.01 and National Australia Bank down 0.4% to $30.84 and ANZ lowered 5 cents to $28.53.

Macquarie Group slipped 11 cents to $37.15 and Wesfarmers dropped 40 cents to $40.20.

Nufarm tumbled 82 cents or 17.2% to $3.95 after agrochemical maker said its six-month financial profit declined 53% and lowered its outlook.

Linc Energy plunged 43 cents or 16.1% to $2.24 ahead of its capital raising plan.