Australian Indexes Drop 0.9%, Myer Holdings Struggles

Marcus Jacob
12 Nov, 2014
New York City

Australian market indexes traded lower on the weakness in iron ore miners and the latest private measure of confidence showed smaller than expected increase. Myer Holdings, the department store operator reported weaker than expected sales and comparable sales.

[R]5:30 PM Sydney – Australian market indexes traded lower on the weakness in iron ore miners and the latest private measure of confidence showed smaller than expected increase. Myer Holdings, the department store operator reported weaker than expected sales and comparable sales.[/R]

Australian market indexes plunged nearly 1% after iron ore miners led the losers and Myer Holdings struggled to improve quarterly results.

The Westpac-Melbourne Institute said consumer confidence index in November increased at 1.9%. The increase in confidence index was less than expected, according to a private report.

Australian dollar closed at 86.77 U.S. cents and in stock-trading turnover fell to 710 million shares worth $4.55 billion.

ASX 200 Index slipped 54 or 0.9% to 5,463.10 and broader All Ordinaries Index dropped 51 to 5,443.

In commodities trading, gold jumped US$17 to US$1,165 an ounce and light crude oil increased 54 cents to US$77.40 a barrel.

Australian Stock Movers

Asciano Ltd gained 0.3% to $6.28 after the rail freight and ports operator estimated capital spending in fiscal 2015 in the range of $600 million to $700 million and in fiscal 2016 between $300 million and $400 million.

For the year, the company estimated underlying EBIT climbed 5% and earnings per share jumped 2.3%.

BHP Billiton Limited dropped 2.8% to $33.20 and the diversified mining company cancelled the plan to sell its Western Australian Nickel West business after the company estimated weak price environment for the deal.

Dulux Group Limited fell 0.2% to $5.59 after the paint, adhesives and building products maker reported revenue in the year ending in September soared 8.8% to $1.61 billion from $1.48 billion a year ago period.

Net profit in the year surged 61.6% to $102.8 million compared to $63.6 million and diluted earnings per share climbed to 27.5 cents from 20.1 cents in the same period a year ago.

Myer Holdings plunged 7.4% to $1.76 after the department store retailer reported sales in the first-quarter ending on October 25 rose 0.1% to $691.6 million and comparable store sales in the quarter increased 0.7%.

Yesterday, Myer reported total sales in the fiscal year ending in September were flat at $3.14 billion and comparable store sales in the year jumped 1.2% from a year ago period.

Net profit in the year tumbled 22.6% to $98.5 million compared to $127.2 million and earnings per share dropped to 16.8 cents from 21.8 cents in the same period a year ago.