Australia Stocks: Atlas, BHP, Fortescue, Rio, Santos, Woodside

By Shani Raja

Nov. 26 (Bloomberg) -- The S&P/ASX 200 Index slipped 10.90 points, or 0.3 percent, to 3,612.50 at 11:20 a.m. in Sydney, the most since Nov. 20. The broader All Ordinaries Index lost 29.20 points, or 0.8 percent, to 3,546.20, while the futures index expiring in December advanced 0.3 percent to 3,628.

Oil companies: Woodside Petroleum Ltd. (WPL AU) fell 56 cents, or 1.7 percent, to A$32.94, the most since Nov. 21. Santos Ltd. (STO AU) fell 39 cents, or 2.7 percent, to A$14.17, the most since Nov. 20.

Crude oil fell on speculation that a U.S. Energy Department report will show that inventories climbed for a ninth week as demand declined. Crude for January delivery declined 6.8 percent to settle at $50.77 a barrel at 2:42 p.m. in New York.

Separately, Woodside may need to sell stock next year to cover spending plans should oil prices remain around current levels and credit markets fail to ease, JPMorgan Chase & Co. said.

Iron-ore producers: Atlas Iron Ltd. (AGO AU) surged 5 cents, or 7.9 percent, to 69 cents, the highest since Nov. 10. Mt. Gibson Iron Ltd. (MGX AU) rallied 2 cents, or 7.6 percent, to 28 cents, the benchmark’s eighth-best performer.

Spot iron ore prices that have declined at least 65 percent from a record this year may not fall much further as producers cut output on slowing global growth, Macquarie Bank Group Ltd. said.

Ausenco Ltd. (AAX AU), an engineering company, tumbled 70 cents, or a record 24 percent, to A$2.25, the lowest since Sept. 6, 2006. The company said OZ Minerals Ltd. confirmed it had deferred spending on projects for which Ausenco provided engineering services.

BHP Billiton Ltd. (BHP AU) rallied A$2.05, or 7.8 percent, to A$28.27, the highest since Nov. 12. The world’s largest mining company yesterday abandoned its yearlong pursuit of Rio Tinto Group (RIO AU), blaming the rout in commodities prices and the credit-market squeeze for derailing the biggest hostile takeover. Rio plunged A$22.31, or 35 percent, to A$41.59, the most since Oct. 23, 1987.

ConnectEast Group (CEU AU), the company building the Eastlink tollway in Melbourne, slumped 11.6 cents, or 18 percent, 52.5 cents, the index’s fourth-biggest loser. ABN Amro Holding NV downgraded the company’s rating to “hold” from “buy.”

Fortescue Metals Group Ltd. (FMG AU), Australia’s third- largest iron ore exporter, plunged 13 cents, or 6.6 percent, to A$1.92, the most since Nov. 19.

Fortescue suspended work on an iron ore railroad in Western Australia, the contractor building the line said. NRW Holdings Ltd. (NWH AU) received instructions from Fortescue to stop work on the line connecting the Cloudbreak mine to the Christmas Creek project, Perth-based NRW said in a statement to the Australian stock exchange. NRW Holdings Ltd. tumbled 19 cents, or a record 42 percent, to 26 cents, an all-time low.

Gunns Ltd. (GNS AU), which is planning a A$2 billion ($1.3 billion) wood pulp mill in Australia’s Tasmania state, rose 6 cents, or 9.7 percent, to 73 cents, the most since Oct. 4, 2007. The move takes its two-day gain to 14 percent after the company agreed to sell some timber assets to repay debt.

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