Australian Markets Turn Lower, Woolworths Net Surges 25%

Marcus Jacob
28 Aug, 2013
New York City

Australian market indexes tracked world markets lower as the prospect of military strike against Syria increased. Oil price advanced on the worries of a wider conflict in the Middle East. Woolworths Limited reported a surge in profit. Metcash plunged on weak profit outlook.

[R]4:30 PM Sydney – Australian market indexes tracked world markets lower as the prospect of military strike against Syria increased. Oil price advanced on the worries of a wider conflict in the Middle East. Woolworths Limited reported a surge in profit. Metcash plunged on weak profit outlook.[/R]

Australian market indexes fell tracking world markets after U.S., UK and allies make preparations for a military strike against Syria.

Commodities, currencies, stocks and bonds around the world were on the defensive as the prospects of wider regional conflict in the Middle East increased.

Australian dollar slid to 89.32 U.S. cents and in stock trading turnover jumped to 810 million shares worth $4.7 billion.

The ASX 200 index dropped 54 or 1% to close at 5,087.20 and the broader All Ordinaries slumped 52.80 to 5,078.

Stocks in Review

Rio Tinto declined $1.58 to $58.16 and BHP dropped 80 cents to $34.80 and Woodside Petroleum Limited increased 5 cents to $37.96.

Westpac fell 50 cents to $31.11 and National Australia Bank slid 34 cents to $32.32.

AGL Energy Limited soared 4.9% to $15.08 after the gas and electricity provider said revenues in the year ending in June climbed 30% to $9.7 billion. Net profit for the year surged two-fold to $388.7 million.

The energy company added underlying profit for the year jumped 24% to $598.3 million from last year.

Charter Hall Group dropped 2.7% to $3.63 after the property investor stated net profit in the year climbed more than three-fold to $54.8 million compared to $16.7 million a year earlier.

Sandfire Resources NL declined 3.1% to $6 after the minerals explorer said revenue in the year ending in June surged $507.3 million from $20.7 million a year ago. Net profit jumped to $88 million. Profit before income tax climbed to $142.1 million.

Transfield Services Limited surged 11.1% to 90 cents after the asset and capital manager reported said revenue in the year ending in June jumped 10% to $3.45 billion from $3.14 billion recorded in the last year. Net in the year swung to a loss $250 million compared to a net profit of $84.8 million a year ago.

Woolworths Limited climbed 2% to $34.59 after the food and liquor retailer reported sales in the year ending in June climbed 4% to $59.2 billion.

Net profit in the year ending in June surged 24% to $2.26 billion and online sales soared 42%. Operating earnings for the year at Australian food and liquor stores climbed 8.7% to $3.06 billion and at New Zealand supermarkets jumped 5.2% to A$236 million.

The retailer estimated profit growth between 4% and 7% and expects online sales to increase above $1 billion in next fiscal year.

Wotif.com Holdings Limited online travel booking service provider said revenue in the year ending in June rose to $146.6 million, from $145.3 million in the previous year. Net profit for the year dropped 12% to $51 million.