Sydney Stocks Rise 1.5%, Woolworth Sales Rise

123jump.com Staff
28 Jan, 2009
New York City

Australia stocks rose 1.5% after commodity and financial stocks gained on expectations that the Reserve Bank of Australia will cut interest rates as consumer prices drop. In the December quarter, consumer price index fell 0.3%. Woolworth second quarter sales rise 8.1% to A$13.3 billion.

[R]3:00AM New York, 7:00PM Sydney - Australian consumer price index drops 0.3% in December quarter. Woolworth second quarter sales rise 8.1% to A$13.3 billion.[/R]

Australia stocks rose 1.5% after commodity and financial stocks gained on expectations that the Reserve Bank of Australia will cut interest rates as consumer prices drop.

In Sydney trading ASX 200 index gained 1.5% or 51.5 to 3,495.50.

Of the ASX 200 index stocks, 107 increased, 76 declined, and 17 were unchanged. Babcock & Brown led advancers in the index shares with a rise of 14.5%.

Financial stocks rallied. Australia & NewZealand Bank edged up 6.5%, and Commonwealth Bank of Australia jumped 6.4%.

Australia Consumer Price Index Falls 0.3% in December Quarter

Australian Bureau of Statistics reported today that the country''s consumer price index declined 0.3% in the three months to December from a gain of 1.2% in the previous quarter. The drop was the largest since September quarter 1997.

However the index advanced 3.7% in the year through December quarter 2008 from an annual rise of 5% to September quarter 2008.

The ABS said declines in then review period were for automotive fuel 18.2%, motor vehicles 2.4%, deposit and loan facilities 1.9%, and pharmaceuticals 4.7%.

In particular, automotive fuel declined 1.47 index points, dragging the December quarter 2008 CPI movement.

However, the most significant offsetting price increases were rents 1.8%, fruit 8%, tobacco 1.7% and takeaway and fast foods 1.5%.

Woolworths Second Quarter Sales Rise 8.1% to A$13.3 billion

Woolworths second quarter sales gained 8.1% to A$13.3 billion in the second quarter ended January 4 from A$12.3 billion in the same period a year ago on rising demand at the supermarket and discount stores.

First -half sales climbed 8.8% to A$26.1 billion.

Sales from Australian supermarkets rose more-than-forecasted by 9.8% to A$8.6 billion as revenue from stores open at least 12 months gained 7.1%, while New Zealand supermarket sales increased 3.1% to A$1.1 billion.

However fuel sales dipped 0.1% to A$1.3 billion on higher prices.

The company''s consumer electronics unit- the Dick Smith and Powerhouse brands- increased sales 12% to A$471 million in Australia and New Zealand.

Sales at the hotels unit jumped 1% to A$292 million and sales at joint venture unit Croma with Tata Group of India increased sales to A$50 million.

Gainers & Losers

Babcock & Brown led gainers in the ASX 200 index shares with a rise of 14.5% followed by increases in Linc Energy of 13.9%, in Centennial Coal of 3.3%, in Babcock & Brown of 9.8%, and NRW Holdings of 8.8%.

Boral Ltd. led decliners in the ASX 200 index shares with a fall of 15.4% followed by losses in Macquarie Countrywide of 14.8%, in Lend Lease Corp. of 8.6%, in Mirvac Group of 6.8%, and James Hardie of 6.6%.

Other commodity stocks fell as gold prices slipped $1.5 to $900 per ounce and crude oil prices shed $3.5 to $42.15 per barrel. Murchison Metals fell 5.7% and Newscrest Mining dropped 3.8%.

Lihir Gold Production Soars 26%

Lihir Gold reported today that gold production at its mines rose 26% to 882,000 ounces, exceeding the target of 850,000 ounces, driven by the acquisition of Equigold NL in June.

Fourth quarter gold production increased to a record 315,000 ounces. LHL forecasts that group-wide gold production will rise by 10% in 2009 to 1 million ounces.