Sydney Stocks Drop 2%, BHP Billiton Net Drops

123jump.com Staff
04 Feb, 2009
New York City

Stocks in Australia fell 2% on weak new building approvals and despite retail sales increase. Building approvals fell in December as construction industry suffers its one of the worst declines in a decade. December retail sales rose 3.8%. BHP Billiton first half profit declined 57%.

[R]3:00AM New York, 7:00PM Sydney- Australia retail sales increase 3.8% in December, lifting market indexes. Australian building approvals decline 2.9% to 9,536 in December.[/R]

Australian stocks fell 2% after a government report showed that the building approvals slipped in December.

However, market declines were pared by news that retail sales gained in December.

In Sydney trading ASX 200 index fell 2% or 70.8 to 3,437.90.

Of the ASX 200 index stocks, 29 increased, 154 dropped, and 17 were unchanged. Tishman Speyer led gainers in the index shares with a rise of 11.1% followed by PanAust Ltd. advancing 7.7%.

Australian Retail Sales Advance 3.8%

Australian Bureau of Statistics reported today that the retail sales gained 3.8% to A$19.1 billion in December from 0.4% in November leveraged by the stimulus package.

The increase is the largest monthly seasonally adjusted percentage increase since August 2000.

Australian turnover soared 29% in December 2008 from a month earlier and chains and other large retailers gained 34%, while the estimate for ''smaller'' retailers increased by 20.1% from November.

Sales across all industries increased in the review period, with sales in food retailing rising 1.4%, at department stores 8.3%, clothing and soft good retailing 5.8%, household good retailing 9.9%, other retailing 2.6% and cafes, restaurants and takeaway food services 1.7%.

Also sales in all states gained. New South Wales rose 4.9%, Victoria 3.9%, Queensland 3.2%, South Australia 2.4%, Western Australia 2.8%, and Tasmania 4.2%.

Australian Building Approvals Fall 2.9%

Separately, the statistics bureau reported that the seasonally adjusted estimate for total dwelling units approved declined 2.9% from a month earlier and 32.9% from a year ago to 9,536 in December.

The estimate for private sector houses approved fell 2.3% from November and 24% a year ago to 6,813 in December, while estimate for private sector other dwellings approved slipped 2.8% from a month ago and 49.4% a year earlier to 2,448.

In addition, the seasonally adjusted estimate for the value of total building approved fell 10.9% in December and the estimate for the value of new residential building approved shed 4.2% in the review period.

The ABS noted the value of alterations and additions lost 2.7% and the value of non-residential building fell 20.3%.

Gainers & Losers

Tishman Speyer led advancers in the ASX 200 index shares with a rise of 11.1% followed by increases in PanAust Ltd. of 7.7%, in Atlas Iron of 5.5%, in West Australia Newspaper of 4.9%, and Fortescue Metals of 4.7%.

ING Office led decliners in the ASX 200 index shares with a decline of 17.9% followed by losses in Macquarie Countrywide of 14.3%, in Macquarie Office of 13.9%, in HFA Holdings of 13.9%, and Babcock & Brown of 13.3%.

BHP Profit Falls 57% to $2.6 billion in H1

BHP Billiton reported today that the company''s attributable profit in the half-year ending December 31 declined 57% to $2.6 billion from $6 billion in the comparable period a year earlier on impairment of assets, increased rehabilitation provisioning for Newcastle steelworks and indefinite suspension of Ravensthorpe.

However, operating earnings gained 23.7% to $11.9 billion from a year ago as new oil and gas operations contributed $649 million in revenues.

The company declared an interim dividend of 41 cents per share.

“Whilst the global economy faces significant challenges, our long term outlook remains unchanged.Weex pect emerging economies'' long term growth to be robust as they continue on the path to urbanization and industrialisation,” said BHP.