Australia Stocks: Commonwealth Bank, BHP, Pacific Brands, Sino

By Ian C. Sayson

Dec. 9 (Bloomberg) -- The S&P/ASX 200 Index fell 28.40 points, or 0.8 percent, to 3,603.20 as of 12:07 p.m. in Sydney, after climbing earlier as much as 0.7 percent. The broader All Ordinaries Index fell 20.80, or 0.6 percent, to 3,533 while the futures contract due in December lost 1.2 percent to 3,599.

Banks: Commonwealth Bank of Australia (CBA AU), the nation’s biggest provider of mortgages, fell A$2.42, or 7.4 percent, to A$30.38 on prospects more share sales will follow after rival Westpac Banking Corp. said it plans to raise A$2.5 billion ($1.7 billion) through a share sale. National Australia Bank Ltd. (NAB AU), the largest by assets, decreased 56 cents, or 2.7 percent, A$20.40.

Westpac, which was been halted today from trading, said it will use the proceeds from the share sale to boost its capital.

Gold producers: Sino Gold Mining Ltd. (SGX AU), operator of China’s second-largest bullion producer, climbed 37 cents, or 12 percent, to A$3.45 after the precious metal ended a three-day slump. Newcrest Mining Ltd. (NCM AU), Australia’s largest gold producer, climbed A$1.07, or 4.1 percent, to A$27.74, heading for its highest close since Oct. 13.

Gold rose 2.1 percent to $772.70 an ounce on the New York Mercantile Exchange yesterday, following a three-day, 3.3 percent loss.

Mining shares: BHP Billiton Ltd. (BHP AU), the world’s largest mining company, increased A$1.24, or 4.6 percent, to A$28.45, set for its biggest gain this month after copper advanced for the first time in eight days. Rio Tinto Group (RIO AU), the world’s third-biggest mining company, added 90 cents, or 2.8 percent, to A$32.98.

Copper surged 8.7 percent yesterday in London, ending a seven-day, 19 percent slump as commodities and equities jumped after President-elect Barack Obama pledged to boost the U.S. economy with the biggest package of public-works spending since the 1950s.

Brambles Ltd. (BXB AU), the world’s biggest supplier of pallets used to move and store goods, decreased 12 cents, or 1.6 percent, to A$7.39, snapping a four-day, 14 percent advance. Citigroup Inc. downgraded the stock to “sell” from “hold” and cut its 12-month share price target for the stock to A$6.80 from A$7.20.

Harvey Norman Holdings Ltd. (HVN AU), Australia’s biggest furniture and electronics retailer, fell 7 cents, or 2.9 percent, to A$2.36, set for its biggest loss since Nov. 27. The company said its “retail margins continue to be under pressure.”

Fairfax Media Ltd. (FXJ AU), Australia’s second-largest newspaper publisher, gained 4 cents, or 2.8 percent, to A$1.49. Endemol NV has offered Fairfax A$160 million ($107 million) for its Southern Star television production and distribution division, the Australian Financial Review reported. Fairfax separately said discussions are still on-going and no agreement on price has been reached yet.

Oil Search Ltd. (OSH AU), Papua New Guinea’s biggest oil producer, gained 5 cents, or 1.2 percent, to A$4.31, extending yesterday’s 6.5 percent climb. Crude oil for January delivery rose $2.90, or 7.1 percent, to settle at $43.71 a barrel on the New York Mercantile Exchange yesterday. That is its biggest gain since Nov. 26.

Pacific Brands Ltd. (PBG AU), Australia’s largest clothing maker, fell for the sixth day, losing 2 cents, or 3.4 percent, to 56.5 Australian cents. The Melbourne-based underwear maker today cut its forecast first-half dividend to 3 cents as it seeks to conserve cash and comply with lending covenants.

Retail Food Group Ltd. (RFG AU), a Queensland state-based food brand manufacturer and franchiser, jumped 7 cents, or 6.2 percent, to A$1.20. The company said it reached an agreement with Allied Mills Ltd. for the sale of its central manufacturing facility that will raise about A$9.5 million, leaving Retail Food to focus on the development of franchise systems.

To contact the reporter on this story: Ian C. Sayson in Manila at isayson@bloomberg.net.