Australia Stocks Preview: BHP, Commonwealth Bank, Midwest, Rio

By Shani Raja

July 10 (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 dropped 1.3 percent to 4,929 at 6:58 a.m. in Sydney. The Bank of New York Australia ADR Index slumped 1.5 percent in New York.

The S&P/ASX 200 Index gained 79 points, or 1.6 percent, to 5,011.90.

Mining shares: A measure of six metals traded on the London Metal Exchange advanced 1.5 percent. Zinc rose 5.7 percent, copper 0.1 percent and nickel 4.1 percent.

American depositary receipts of BHP Billiton Ltd. (BHP AU), the world's largest mining company, lost 0.8 percent to the equivalent of A$39.10 a share in New York, 88 cents lower than the A$39.98 close in Sydney.

Rio Tinto Group (RIO AU) declined 30 cents, or 0.2 percent, to A$123.15.

Financial stocks: U.S. stocks tumbled, sending the Standard & Poor's 500 Index into its first bear market since 2002 on growing concern the biggest mortgage finance companies may not weather the housing slump. Fannie Mae and Freddie Mac led financial shares to their biggest decline in six years after Fannie's borrowing costs surged on concern it won't be able to fund its business. The S&P 500 lost 29.01 points, or 2.3 percent, to a two-year low of 1,244.69.

Separately, Reserve Bank of Australia Governor Glenn Stevens said the global shakeout from the credit squeeze has further to run as banks and securities firms report losses, cut workers and improve risk monitoring.

Commonwealth Bank of Australia (CBA AU), the nation's largest mortgage provider, rose 76 cents, or 1.9 percent, to A$41.49. National Australia Bank Ltd. (NAB AU), the nation's largest bank, gained A$1.25, or 4.7 percent, to A$27.60.

Metcash Ltd. (MTS AU): Australia's biggest grocery wholesaler, withdrew from bidding for a pharmaceuticals wholesaling unit of Primary Health Care Ltd. (PRY AU) after the antitrust regulator called for further submissions on the takeover. Metcash fell 2 cents, or 0.5 percent, to A$3.83. Primary Health Care slipped 32 cents, or 6.6 percent, to A$4.50.

Midwest Corp. (MIS AU): The iron ore producer intersected high-grade magnetite mineralization at its flagship Weld Range Project, it said in a statement yesterday. The discovery improves the chances of ``significant volumes'' of the material being present across a wider area, the company added. Midwest advanced 2 cents, or 0.3 percent, to A$6.40.

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