Australia Stocks Preview: BHP, Foster's, Herald, Rio, Woodside

By Shani Raja

July 9 (Bloomberg) -- The following is a list of companies whose shares may rise or fall in Australia. This preview includes news announced after markets closed yesterday. Prices are from yesterday's close unless otherwise stated.

The S&P/ASX 200 Index futures contract due in September gained 0.8 percent to 4,999 at 6:59 a.m. in Sydney. The Bank of New York Australia ADR Index dropped 0.9 percent in New York.

The S&P/ASX 200 Index lost 69.60 points, or 1.4 percent, to 4,932.90.

Mining shares: A measure of six metals traded on the London Metal Exchange slipped 3.1 percent. Zinc dropped 3.1 percent, copper 2.5 percent and nickel 1.6 percent.

American depositary receipts of BHP Billiton Ltd. (BHP AU), the world's largest mining company, lost 1.4 percent to the equivalent of A$39.50 a share in New York, the same as the close in Sydney.

Rio Tinto Group (RIO AU) advanced 20 cents, or 0.2 percent, to A$123.45.

Oil companies: Crude oil fell more than $5 a barrel, the biggest decline in three months, as signs that the global economy may slow prompted investors to sell commodities. Crude oil for August delivery fell $5.33, or 3.8 percent, to settle at $136.04 a barrel in New York.

Woodside Petroleum Ltd. (WPL AU), Australia's second-largest oil and gas producer, lost A$1.43, or 2.4 percent, to A$58.67.

Financial stocks: U.S. financial shares had their best gain in more than three months after JPMorgan's Jamie Dimon said buyers are returning to some types of mortgage products. Fannie Mae and Freddie Mac rebounded from their lowest levels in more than 13 years after a regulator said the mortgage-finance companies shouldn't have to raise more capital. The Standard & Poor's 500 Index jumped 21.39 points, or 1.7 percent, to 1,273.7.

National Australia Bank Ltd. (NAB AU), the nation's largest bank, dropped 72 cents, or 2.7 percent, to A$26.35.

Foster's Group Ltd. (FGL AU): Coca-Cola Amatil Ltd. said it won't bid for Foster's A$10 billion ($9.5 billion) beer business, ending speculation of a joint venture with SABMiller Plc, the Australian Financial Review reported. Foster's beer business ``was not in good shape,'' and did not represent ``compelling value,'' the newspaper cited Coca-Cola Amatil Chief Executive Officer Terry Davis as saying. Foster's fell 10 cents, or 2.1 percent, to A$4.65.

Herald Resources Ltd. (HER AU): Shenzhen Zhongjin Lingnan Nonfemet Co., China's fourth-biggest zinc producer by output, said it is extending its offer for the Australian mining company to July 15 from July 8. In a statement to the Shenzhen stock exchange today, the company also urged Herald shareholders to ``temporarily'' reject the A$2.85 ($2.72) per share rival offer from PT Bumi Resources, Indonesia's biggest coal producer. Herald rose 1 cent, or 0.3 percent, to A$2.92.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.