Australian Indexes in 3-Day Decline; CBA Net Surges 8%, Domino's Jump 20%

Marcus Jacob
11 Feb, 2015
New York City

Australian market indexes declined for the third day in a row in active trading and consumer confidence rose to a one-year high. Commonwealth Bank, the largest bank in Australia said net profit surged 8% to a record high. CSL said net profit soared 7%. Domino

[R]5:30 PM Sydney – Australian market indexes declined for the third day in a row in active trading and consumer confidence rose to a one-year high. Commonwealth Bank, the largest bank in Australia said net profit surged 8% to a record high. CSL said net profit soared 7%. Domino’s Pizza soared more than 20% on results and outlook.[/R]

Australian market indexes declined for the third day in a row and consumer confidence increased to a 13-month high. Earnings were in focus after Commonwealth Bank, Stockland, CSL, Boral and Domino’s Pizza reported mixed reports.

Seasonally adjusted total number of home loans in December increased 2.7% to 53,920 followed by 0.7% decrease in November, the Australian Bureau of Statistics announced today.

The department added value of loans jumped 3.8% to $18.04 billion after easing 0.2% a month ago and investment lending soared 6% to $12.56 billion after dropping 2.2% in the previous month.

The latest survey showed consumer confidence index in January surged 8% to 100.7, highest in 13-months after 2.4% gain in December, Westpac Bank and the Melbourne Institute said today.

Australian dollar closed at 77.71 U.S. cents and in stock-trading turnover gained to 736 million shares worth $5.19 billion.

ASX 200 Index slipped 31.50 or 0.5% to 5,769.10 and broader All Ordinaries Index fell 25.70 to 5,731.70.

In commodities trading, gold dropped US$6 to US$1,238 an ounce and light crude oil declined $2.84 to US$50.02 a barrel.

Brent crude rose 22 cents to close at US$56.65 a barrel.

Australian Stock Movers

Boral Limited slipped 1.2% to $5.79 after the construction material maker said total revenues in the first-half ending in December declined 20.5% to $2.28 billion from $2.87 billion a year ago.

Net in the period swung to profit $104.5 million compared to a loss of $26.3 million and diluted earnings per share jumped to 12.8 cents from 7.5 cents in the same period a year ago.

Commonwealth Bank of Australia fell 0.8% to $91.86 after the largest Australian bank reported revenues in the first-half ending in December jumped 3% to $22.85 billion from $22.29 billion a year ago period.

Net profit in the period climbed 8% to $4.53 billion compared to $4.21 billion and diluted earnings per share increased to 272.1 cents from 253.9 cents in the same period a year ago.

The bank hiked interim-dividend by 8% from a year ago to $1.98.

CSL Limited tumbled 8.1% to $82.95 after the biopharmaceutical company said revenues in the first-half ending in December climbed 6.6% to $2.74 billion from $2.57 billion a year ago period.

Net profit in the period jumped 7.2% to $692.2 million compared to $645.7 million and diluted earnings per share rose to 145.5 cents from 132.6 cents in the same period a year ago.

The company said cash from operations surged 28% and cash on hand rose to US$10.6 billion from a year ago.

Domino''s Pizza Enterprises Limited surged 21.2% to $33 after the pizza chain reported revenues in the first-half ending in December soared 29.5% to $343.6 million from $265.4 million a year ago period. Same store sales in the period climbed 8.6%.

Net profit in the period surged 44.2% to $29.1 million compared to $20.2 million and diluted earnings per share rose to 33.8 cents from 24.7 cents in the same period a year ago. The pizza chain said revenues from Japan climbed 57.6% to $154.3 million.

In the period food service provider added 34 new stores and plans to open 200 new stores and surpass 1,500 stores before the end of the year.

Domino''s lifted net profit forecast for the year to a 32.5% increase and same store sales growth to rise between 6% and 8%.

Suncorp Group Ltd declined 2.9% to $14 after the insurer reported revenues in the first-half ending in December jumped 2.5% to $8.46 billion from $8.25 billion a year ago.

Net profit in the period climbed 15.4% to $636 million compared to $551 million and diluted earnings per share increased to 48.44 cents from 42.49 cents in the same period a year ago.

[Stockland Corporation Ltd jumped 2.8% to $4.73 after the largest home builder said revenues in the first-half ending in December jumped 12.9% to $999 million from $885 million a year ago period.

Net profit in the period soared 55% to $462 million compared to $298 million and diluted earnings per share jumped to 19.7 cents from 12.9 cents in the same period a year ago.