Retail Sales, Building Permits Fall in Australia

123jump.com Staff
31 Mar, 2010
New York City

Australia

[R]3:00 AM New York, 7:00PM- Australia’s retail sales fall 1.4% to A$19.8 billion in February and building approvals decline 3.3% in the month. Macarthur Coal rejects Peabody Energy’s A$3.3 billion bid. Ten Network Holdings Ltd posted first-half profit amid improving conditions.[/R]

The benchmark stock index fell 0.8% in Australia after retail sales and building approvals declined in February, according to government reports.

Commodity stocks were also mixed as gold prices gained 0.1% to $1,107 per ounce and crude oil prices slipped 0.2% to $82.20 per barrel.

In Sydney trading ASX 200 Index decreased 0.8% or 41.3 to 4,875.50.

Of the ASX 200 index stocks, 57 gained, 122 fell, and 21 were unchanged. Macarthur Coal led advancers in the index shares with a rise of 16.2% after the company rejected A$3.3 billion bid from Peabody Energy based in the U.S.

Other commodity stocks rose as well. Sundance Resources edged up 3.3% and Centennial Coal jumped 2.7% to A$4.26.

The Australian dollar fell 0.5% to 91.44 U.S. cents.

Retail Sales Fall 1.4% in February

Australian Bureau of Statistics reported today that the country’s retail sales fell 1.4% to A$19.8 billion in February from the previous month.

Sales decreased in department stores 3.9%; clothing, footwear and other personal accessory retailing 3.9%; food retailing 1.7%; household goods retailing 1.3% and other retailing 0.8%.

Sales, however, rose in cafes, restaurants & takeaway food services by 1.8%.

According to the bureau, NSW recorded the biggest decline in sales falling 2.5% followed by South Australia 1.7%, Western Australia 1.4%, Victoria 0.9%, the Australian Capital Territory 0.9% and Queensland 0.8%.

Tasmania gained 1.5% and the Northern Territory advanced 0.8% in the period.

Building Approvals Fall 3.3%

The ABS reported in a separate report that total dwelling approvals fell 3.3% to 13,929 units in February from the previous month, but rose 34.2% from a year ago month.

The number of approvals for private sector homes fell 0.9% from the previous month and rose 33.3% from a year ago to 9,711 units.

Also private sector other dwellings approvals decreased 10.9% on the month and fell 4.9% on the year to 2,698 units.

Number of dwellings approved fell in New South Wales 14.6%, Victoria 1.9% and South Australia 23.3%.

The value of total building approved fell 4.5% in February, while the value of total residential building approvals rose 1.2% and non-residential building approvals fell 13.0%.

Macarthur Coal Rejects A$3.3 billion Peabody Bid

Macarthur Coal announced today that it has received an indicative, non-binding “and highly conditional” proposal from Peabody Energy Corporation to acquire all the shares in the company for a cash consideration of A$13 a share.

Peabody’s offer represents a 7.5% premium to Macarthur’s yesterday closing price of A$12 per share.

The offer was conditional upon the appropriate support being received from Macarthur''s three major shareholders, CITIC Resources Holdings Limited, ArcelorMittal SA and POSCO collectively holding 47.4% stake.

It is also conditional on the Gloucester offer not proceeding.

However, the company indicated that the offer was not in the best interests of shareholders “in the current form.”

The report notes that Macarthur intends to proceed with the shareholder meeting scheduled on April 12 to consider the proposed issue of Macarthur Coal shares to Noble Group Limited under the takeover of 100% of Gloucester Coal Ltd and the acquisition of Noble’s interest in the Middlemount Coal joint venture.

In addition, Peabody had indicated that disclosure of the Indicative Proposal without its consent could diminish Peabody’s interest in pursuing a transaction.

ASX Movers

Sigma Pharmaceuticals Limited led decliners in the S&P ASX 200 index with a loss of 48.3% followed by losses in Gunns Limited of 4.0%, in Carsales.com Ltd of 3.9%, in Wotif.com Holdings Limited 3.3% and in ASX Limited 3.1%.

Macarthur Coal Limited led gainers in the S&P ASX 200 index with a rise of 16.2% followed by gains in Carnarvon Petroleum Limited 7.7%, in Energy World Corporation Limited of 5.6% and in Western Areas NL of 5.6%.

Other Movers

ASX Limited the stock-exchange operator decreased 3.1% to A$33.94.

BT Investment Management Limited added 1.7% to A$2.89 but CFS Retail Property Trust dropped 1.0% to A$1.88.

Goodman Group the company engaged in investment in directly and indirectly held industrial property rose 0.7% to A$0.65.

Macarthur Coal Limited surged 16.2% to A$14.05 after the company received a bid for A$13 a share.

National Australia Bank Limited fell 0.6% to A$27.52 after the company announced that it has agreed binding terms with the French parent company AXA, and AXA Asia Pacific Holdings Limited to purchase the Australian and New Zealand businesses of AXA APH for $4.6 billion as part of a proposal to acquire all of the shares in AXA APH.

Sigma Pharmaceuticals Ltd the drug manufacturer and distributor said 2009 revenues rose 4.5% to A$3.22 billion from A$3.08 billion a year ago. Net loss for the year was A$389.0 million or 40.7 cents per diluted share compared to net profit of A$80.1 million or 9.2 cents per share a year ago.

Ten Network Holdings Limited advanced 2.4% to A$1.90 after the broadcaster said first half revenues rose 1.4% to A$474 million from A$467.6 million a year ago. Net profit for the first half was A$58.7 million compared to net loss of A$79.7 million a year ago.