3:00AM New York, 7:00PM Sydney - ASX 200 index lost 1.4% as financial stocks weakened. Qantas appoints new directors. ACCC commences proceedings against ABC. QGC increase its coal seam gas estimate by 80%.
Market Sentiments
ASX 200 index lost 1.4% or 76.6 to close at 5,366.60. The preliminary market turnover was 1.99 billion, worth $7.03 billion, with 557 stocks up, 683 stocks down and 377 unchanged. The most traded stock was Telstra with 63.2 million shares worth $287 million.
Market Driver
Australian stocks declined after the global credit market worried resurfaced. Overnight in New York, Morgan Stanley reported a profit decline of 61% and hedge fund manager Paul Johnson in a industry gathering suggested that total credit market related asset write down may reach $1.3 trillion. So far the world wide banks have reported losses of $392 billion.
Of Australia''s top five retail banks, St George''s share led the decliners with a loss of 4.6% followed by losses at ANZ of 4.3%, at Westpac of 4.2%, at National Australia Bank of 3.9% and at Commonwealth Bank of Australia of 1.8%.
Gainers and losers
Of the ASX 200 index stocks, Centro Retail led the gainers with a rise of 14.5% followed by increases in FKP Property Group of 7%, in ABB Grain Ltd of 6.6%, in Sino Gold Mining of 6.6% and in Felix Resources of 6.4%.
Of the ASX 200 index stocks, Babcock & Brown Power led the decliners with a fall of 20% followed by losses in Asciano group of 9.5%, in ABC Learning of 9.5%, in Macquarie Infrastructure of 8.2% and in Duet Group of 8.2%.
Woodside aims to be a global leader in LNG production
Don Voelte, chief executive of Australia''s second-largest oil and gas producer, Woodside today indicated that the oil producer is aiming to be a global leader in LNG production.
He told a UBS conference in Sydney that they were already “up there with the super-majors” in terms of operated capacity. He said its NWS fields have over 20 trillion cubic feet of gas reserves after 24 years of production. Woodside gas reservoirs could recover up to 90% gas.
Mr Voelte said the liquefied natural gas market expected to remain short until 2015, a factor that was likely to keep during demand up and delays in supply projects.
Woodside has already approved the development of Pluto LNG project worth $12 billion. The project is one of three LNG projects to be approved worldwide in the last three years.
Woodside share gained 2.8%, fellow oil miner Oil Search Ltd was up 2% and Santos gained 2.6%.
Queensland Gas increases coal seam gas reserve estimate by 80%
Queensland Gas Company today said that it will increase its estimate of reserves of coal seam gas by 80% from 1,317 petajoules (PJ) to more than 2,370 PJ, of which QGC''s share would be more than 1,895 PJ.
The upgrade, expected by 30 June after final confirmation by independent certifiers Netherland Sewell & Associates, would represent an increase in the key reserves by 80% across the Surat Basin acreage.
QGC has owned 80% of the reserves since completing a key transaction with BG Group on 11 April. BG Group, which is partnering QGC in the Queensland Curtis LNG project to export liquefied natural gas from Gladstone, owns the balance of 20% of the reserves.
The Queensland Curtis LNG Project is designed to supply 3 to 4 million tons of LNG a year to export markets from a plant to be developed at Curtis Island, near Gladstone. QGC has targeted a gas reserve base of 7,000 PJ to supply the project. |
