Australia Stocks: Commonwealth Bank, Iluka, OneSteel, Westpac

By Ian C. Sayson

Dec. 10 (Bloomberg) -- The S&P/ASX 200 Index fell 15.80 points, or 0.4 percent, to 3,588.50 as of 10:34 a.m. in Sydney. The broader All Ordinaries Index fell 11.30, or 0.3 percent, to 3,522.40 while the futures contract due in December lost 0.1 percent to 3,611.

Commonwealth Bank of Australia (CBA AU), the nation’s largest mortgage lender, dropped A$1.01, or 3.4 percent, to A$28.99 after it said it will sell up to A$750 million ($495 million) in stock to Merrill Lynch & Co. The stock price-target was also cut by Morgan Stanley to A$31.80 from A$33.50

Iluka Resources Ltd. (ILU AU), the world’s biggest zircon producer, gained for the sixth-day, adding 8 cents, or 1.7 percent, to A$4.78. The company raised its 2008 profit forecast 20 percent to about A$60 million because of the falling Australian currency.

Linc Energy Ltd. (LNC AU), an Australian energy company planning to convert coal into diesel, declined 4 cents, or 1.6 percent, to A$2.46. The company said it extended an option to sell fuel to BP Plc from its planned gas-to-liquids plant in southern Australia. The option allows BP to buy 14,000 barrels a day of diesel, or 70 percent of the planned daily output of 20,000 barrels.

OneSteel Ltd. (OST AU), the second-largest Australian producer of the alloy, sank 25 cents, or 11 percent, to A$2.10, set for its biggest loss since Nov. 20. The company said today that it doesn’t expect extraordinary profit in the first half.

Wesfarmers Ltd. (WES AU), which operates businesses ranging from groceries to coal mining, increased 34 cents, or 2.1 percent, to A$16.90. The company said production from its Curragh mine will meet its fiscal year forecast even after damage to one of the five draglines at the mine.

Westpac Banking Corp. (WBC AU), Australia’s second-largest bank, decreased A$1.63, or 9.1 percent, to A$16.25, set for its biggest drop since Nov. 13. The bank said it raised A$2.5 billion from the sale of shares at A$16 apiece yesterday. The price was 11 percent lower than the closing price on Dec. 8.

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