Woolworths, Danks Surge; Weak Australian Trading

123jump.com Staff
25 Aug, 2009
New York City

Australian stocks declined after surging on Monday. Suncorp-Metway and Foster

[R]8:00 PM Sydney – Australian stocks declined after surging on Monday. Suncorp-Metway and Foster’s earnings reports dominated weak trading sentiment. Danks Holdings surged after Woolworths’ plan to move into the home hardware retail market.[/R]

The ASX 200 index in Australia decreased 20.30 or 0.46% to 4,405.80 and the broader All Ordinaries index decreased 0.4% to 4,417.50.

Gainers & Losers

Woolworths increased 2.2% to $28.63 after it plans to expand into home hardware market. Woolworths’ acquisition of Danks Holdings is expected to pave its entry into profitable niche that is currently dominated by Bunnings controlled by Wesfarmers.

Wesfarmers declined 5.7% to $24.80 and Danks Holdings surged 71% to $14.

Rio Tinto declined 1% to $58.50 after the Mongolian Parliament approved the wind fall tax provision to collect 68% that will expire in 2011. Ivanhoe Mines and Rio are expected to benefit from the provision and will start investing in copper and gold project.

Mongolia is estimated to have copper reserves of 79 billion pounds and 45 million ounces of gold. The tax provision change may have altered the revenue share and stake holding in the Oyu Tolgoi project. Rio acquired 10% stake in Ivanhoe Mines in 2006 that controls the Mongolian project.

Foster’s Group closed nearly unchanged at $5.42 after it reported annual profit increase of 292% to $438.3 million.

Suncorp-Metway decreased 3% to $7.58 after it reported a profit decline of 40%.

Earnings Review

Aristocrat Leisure Limited, the maker of slot machines said first-half sales fell 5.3% to $441.7 million from $466.3 million a year ago. Net loss for the first-half was $33.1 million or 7 cents per diluted share compared to net profit of $71.4 million or 15.2 cents per share a year ago.

Foster’s Group Limited, the brewer said full-year revenues rose 2.7% to $4.49 billion from $4.37 billion a year ago. Net profit for the full-year rose 292% to $438.3 million or 22.8 cents per diluted share compared to net profit of $111.7 million or 5.8 cents per share a year ago.

Mirvac Group, the real estate investment trust said full-year revenues fell 0.8% to $388.6 million from $391.7 million a year ago. Net loss for the full-year was $541.6 million or 32.36 cents per diluted share compared to net profit of $396.0 million or 33.71 cents per share a year ago.

Oil Search Limited, the oil producer said first-half revenues fell 60.3% to $185.1 million from $466.7 million a year ago. Net profit for the first-half fell 87% to $35.6 million or 3.14 cents per diluted compared to net profit of $264.4 million or 23.40 cents per share a year ago.

Suncorp-Metway Ltd, the car and home insurer said full-year net interest income rose 6.8% to $1.1 billion from $1.03 billion a year ago. Net profit for the full-year fell 40% to $348 million or 22.8 cents per diluted share compared to net profit of $583 million a year ago.

ASX 200 Index Movers

Mincor Resources NL led the decliners in the ASX 200 index of 6.9% followed by losses in AWB Limited of 6.8%, in Independence Group NL of 5.7%, in Wesfarmers Limited of 5.7% and in Virgin Blue Holdings Limited Ltd of 5.1%.

SEEK Limited led gainers in the ASX 200 index with a rise of 15.3% followed by gains in ING Industrial Fund of 10.0%, in Emeco Holdings Ltd of 9.8% and Extract Resources Limited of 8.2%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 83.69 or 0.79% to 10,497.36, Hang Seng index in Hong Kong decreased 100.70 or 0.49% to 20,435.24 and CSI 300 index in China lower 119.77 or 3.71% to 3,109.83. ASX 200 index in Australia decreased 20.30 or 0.46% to 4,405.80. The FTSE Bursa KL Composite index in Malaysia closed lower 3.40 or 0.29% to 1,171.09.

The Kospi Index in South Korea decreased 10.84 or 0.67% to close at 1,601.38. SET index in Thailand closed higher 2.26 or 0.35% to 655.46 and JSE Index in Indonesia increased 4.65 or 0.20% to 2,380.52. The Sensex index in India increased 59.72 or 0.38% to 15,688.47.