Australia Stocks: Alumina, BHP, Minara, Rio, Telstra, Woodside

By Shani Raja

Jan. 20 (Bloomberg) -- The S&P/ASX 200 Index fell 127.60 points, or 3.6 percent, to 3,461 at 12:43 p.m. in Sydney, the lowest since Nov. 24.

Financial stocks: Banks fell after Royal Bank of Scotland Group Plc slumped the most in two decades in London trading on concern the government may have to take control of the bank after forecasting the biggest loss ever by a U.K. company.

Australia & New Zealand Banking Group Ltd. (ANZ AU), Australia’s fourth-biggest bank, slumped 67 cents, or 4.6 percent, to A$13.76, the lowest since Dec. 17. National Australia Bank Ltd. (NAB AU), the country’s biggest lender by assets, dropped A$1.06, or 5.5 percent, to A$18.38, the lowest since May 21, 1997.

Mining shares: Mining stocks dropped after aluminum fell to a five-year low in London as cheaper oil prices reduced production costs, spurring speculation that supply will expand. Aluminum fell 2.8 percent to $1,424 a metric ton at 5:10 p.m. on the London Metal Exchange.

Alumina Ltd. (AWC AU), partner in the world’s biggest producer of the material used to make aluminum, declined 7 cents, or 5.3 percent, to A$1.24, the lowest since Dec. 24. Separately, Alumina may turn to a loss this year and cut its dividend because of forecasts of lower prices of the metal, according to by Amro Holding NV.

BHP Billiton Ltd. (BHP AU), the world’s largest mining company, fell A$1.49, or 4.9 percent, to A$28.89. Rio Tinto Group (RIO AU), the third biggest, plunged A$2, or 4.9 percent, to A$38.55, the most since Jan. 15.

Oil companies: Energy stocks fell after crude oil futures fell below $34 a barrel in New York on forecasts faltering global economic growth will drive down fuel consumption for a second year.

Woodside Petroleum Ltd. (WPL AU) fell A$1.14, or 3.3 percent, to A$33.15, the lowest since Dec. 24, as crude fell as low as $33.89 a barrel in electronic trading. Santos Ltd. (STO AU) slipped 74 cents, or 5 percent, to A$13.99.

Minara Resources Ltd. (MRE AU), the Australian nickel producer controlled by Glencore International AG, gained 1 cent, or 3.2 percent, to 32 cents, the most since Jan. 7.

Minara said its share of fourth-quarter production from the Murrin Murrin operation increased 30 percent as performance at its plant improved. The Perth-based company’s 60 percent share of output rose to 4,702 metric tons, from 3,612 tons a year earlier, the company said.

Qantas Airways Ltd. (QAN AU) dropped 11 cents, or 4.3 percent, to A$2.47, rolling back yesterday’s 4.5 percent advance.

Premium air travel slumped in November as global trade slowed and business confidence waned, adding to carrier woes, the International Air Transport Association said. The number of passengers with first- and business-class tickets fell 11.5 percent in November compared with a year earlier, IATA said.

Telstra Corp. (TLS AU), Australia’s biggest telephone company, declined 4 cents, or 1.1 percent, to A$3.50, the lowest since Aug. 28, 2006. The company was downgraded to “underperform” at Macquarie Group Ltd., which cited uncertainty over the government’s plans for a national broadband network.

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