Australia Stocks: Babcock, JB Hi-Fi, Minara, OneSteel, Primary

By Shani Raja

Aug. 19 (Bloomberg) -- The S&P/ASX 200 Index fell 61.20 points, or 1.2 percent, to 4,923.80 at 10:20 a.m. in Sydney. The broader All Ordinaries Index lost 57.20 points, or 1.1 percent, to 4,986.30, while the futures index expiring in September slipped 2.4 percent to 4,888.

Financial stocks: Commonwealth Bank of Australia (CBA AU), the nation's biggest mortgage provider, declined 94 cents, or 2.2 percent, to A$41.20, the lowest since Aug. 4. Australia & New Zealand Banking Group Ltd. (ANZ AU) dropped 38 cents, or 2.3 percent, to A$16.39.

U.S. stocks declined the most in more than a week, led by banking and real estate shares, as growing speculation the government will bail out Fannie Mae and Freddie Mac rattled the mortgage market. The Standard & Poor's 500 Index lost 19.60 points, or 1.5 percent, to 1,278.60.

Babcock & Brown Ltd. (BNB AU) plunged 38 cents, or 8.4 percent, to a record low A$4.13. Executive Chairman Jim Babcock has brought forward plans to step down and Chief Executive Officer Phil Green is considering his role amid a board overhaul, the Australian Financial Review reported, without saying where the information came from.

JB Hi-Fi Ltd. (JBH AU), the best-performing retailer in Australia's benchmark stock index this year, rose 32 cents, or 2.6 percent, to A$12.70, the index's third-best performer. JB Hi- Fi increased second-half profit 70 percent on sales of video- games and flat-panel televisions.

Minara Resources Ltd. (MRE AU), Australia's second-largest nickel producer, fell 4 cents, or 3.9 percent, to A$1.12, the lowest in five years. Nickel dropped for the third day, losing 3.5 percent on the London Metal Exchange.

Newcrest Mining Ltd. (NCM AU), Australia's biggest gold producer, advanced 54 cents, or 2.2 percent, to A$25.12, the index's ninth-biggest gainer. Newcrest Mining reported a fourfold increase in second-half profit on higher bullion prices and increased output.

OneSteel Ltd. (OST AU), Australia's second-largest steelmaker, gained 41 cents, or 7.1 percent, to A$6.20, the benchmark's second-biggest gainer. OneSteel Ltd. posted a 57 percent gain in second-half profit, driven by higher steel prices and iron ore sales.

Orica Ltd. (ORI AU), the world's largest explosives maker, slipped 78 cents, or 3.1 percent, to A$24.14, the most since Aug. 5. Orica said the strength of the Australian currency will reduce earnings before interest and tax this fiscal year.

Primary Health Care Ltd. (PRY AU) jumped 20 cents, or 3.9 percent, to A$5.37, the highest since June 26, after agreeing to sell a pharmaceuticals wholesaling unit to Switzerland's Zuellig Pharma for A$505 million ($438 million).

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