Australian Stocks Rebound from 3-Day of Losses, David Jones Net Falls

Marcus Jacob
25 Sep, 2013
New York City

Australian stocks rebounded after declining for three days. Reserve Bank of Australia in its half-year review said home owners not to expect the repeat price gains in the last decade. David Jones reported a less than expected decline in profits.

[R]4:45 PM Sydney – Australian stocks rebounded after declining for three days. Reserve Bank of Australia in its half-year review said home owners not to expect the repeat price gains in the last decade. David Jones reported a less than expected decline in profits.[/R]

Australian market indexes rebounded after three days of losses and energy and consumer staples stocks led the gainers.

The ASX 200 index increased 42 points to 5,276 and 650 million shares changed hands worth $4.2 billion.

The Reserve Bank of Australia urged banks to monitor and maintain tight lending standards as record low interest rate spur demand for riskier projects. The central bank urged banks to resist the temptation to sell more risk based products.

The central bank in its half-year Financial Stability Review urged home owners not to expect the repeat of home price gains in the last decade despite the record low interest rate in sixty years.

The RBA also noted larger banks have maintained their lending standards for home loans but smaller banks and credit unions are offering loans with smaller down payments.

Stocks in Review

BHP Billiton increased 13 cents to $36 and Rio Tinto added 31 cents to $62.41.

Oil Search increased 29 cents to $8.97, Woodside Petroleum added 25 cents to $38.85.

David Jones increased 4.9% to $2.99 despite the annual net profit declined 6% to $95.2 million but underlying profit increased slightly to $101.6 million.

The company said blamed the fall in earnings on weak consumer spending but guided it is “well positioned” to benefit from the rebound in spending.

Myer increased 2 cents to $2.67 and JB Hi-Fi gained 14 cents to $20.92.

Telstra Corporation Limited closed unchanged at $4.93 after the company announced its plan to cut 1,100 jobs as part of its previously announced restructuring of operation. The move will eliminate 6% of its workforce.

Nufarm Limited said its annual net increased 11.6% to $81 million despite challenging business conditions.

Commonwealth Bank decreased 6 cents to $72.84, Westpac increased 37 cents to $33.11 and ANZ added 42 cents to $31.41. National Australia Bank advanced 68 cents to $35.30.

Qantas Airways Limited added 1.7% after Singapore’s regulator cleared the discount carrier subsidiary’s plan to coordinate cargo and passenger services to Singapore.

Skilled Group Limited increased 2% after the company’s offshore subsidiary won a contract work on Icthys LNG Project offshore Western Australia valued at $200 million.