Australian Stocks Fall on Weak Manufacturing

123jump.com Staff
02 Mar, 2009
New York City

Australian wages and salaries increase 0.2% in the December quarter and new home sales advance 8% in January. Australian manufacturing index drops in February. Stocks in Australia fell on a weakness in metal prices and worries that industrial activities will slowdown in the rest of the year.

[R]3:00AM New York, 7:00PM Sydney- Australian wages and salaries increase 0.2% in the December quarter and new home sales advance 8% in January. Australian manufacturing index drops in February.[/R]

Stocks in Australia dropped as more economic data suggested widening of recession.

A government report showed today seasonally adjusted gross operating profit for companies in the December quarter fell 6.5%. Also a private report indicated a measure of performance in the manufacturing industry dropped markedly to 31.7.

Market Sentiment

In Sydney trading ASX 200 fell 2.8% or 94.4 to 3,250.10.

Of the ASX 200 index stocks, 39 increased, 148 declined, and 13 were unchanged. Macquarie Media led advancers in the index shares with a rise of 26.6% followed by Sino Gold rising 9.5%.

Wages and Salaries Rise 0.2% in December Quarter

Australian Bureau of Statistics reported today that the seasonally adjusted estimate for wages and salaries advanced 0.2% in the three months to December from the previous quarter and increased 6.5% from the same period a year ago.

The gross operating profit for companies in the period dropped 6.5% in the December quarter from a quarter earlier, but rose 19.7% from the comparable year-ago period.

According to the statistics bureau, the seasonally adjusted estimate for investors plunged 1.9% in the review period from the quarter ended September and rose 1.4% from a year.

Sales of goods and services in the manufacturing sector fell 2.3% from the previous quarter and dropped 1.7% from a year ago in December, while the wholesale trade sales in goods and service shed 4% in the three months to December from the September quarter and plummeted 2.8% from a year earlier.

Australia New Home Sales Rise 8% in January

Australia’s Housing Industry Association announced today that new home sales increased more than 8% in January driven by best affordability conditions and a boost to the First Home Owners Grant.

Detached home sales soared 9.8% in the review period and edged up 3% in the quarter ended January.

However, pre-contract sales of apartments and home units declined for the fourth consecutive month.

In the month, new home sales rose 24.2% in South Australia, 19.3% in Victoria, 10.9 % in Queensland, and 0.9% in Western Australia.

In addition, sales fell by 5.8% in New South Wales.

HIA chief economist Dr Harley Dale said, """"The unlocking of many of the private dwelling projects caught up in the credit crunch will go a long way to ensuring a broad-based private sector housing recovery. A rapid start to the Federal Government’s public housing stimulus plan announced in early February is a vital cog in transitioning the industry to recovery.""""

Manufacturing Performance Index Falls

Australian Industry Group reported today that the Australian Industry Group and PricewaterhouseCoopers’ performance of manufacturing index slipped 4.9 points to 31.7 in February.

A reading below 50 shows contraction, while a measure above 50 shows expansion.

Gainers & Losers

Macquarie Media led advancers in the ASX 200 index shares with a rise of 26.6% followed by increases in Sino Gold of 9.5%, in Newscrest Mining of 8.1%, in Downer EDI Ltd. of 7.5%, and Lihir Gold of 6.4%.

Commodity-related stocks increased. Platinum Australia jumped 5.9%, Avoca Resources increased 4.9% and OZ Minerals climbed 3.2%.

Pacific Brands led decliners in the ASX 200 index shares with a decline of 22.2% followed by losses in Babcock & Brown of 20%, in Boart Longyear Group of 20%, in Hastings Diversified Fund of 15.4%, and GPT Group of 14.9%.