Australian stocks: Shares drop for second day

SYDNEY - Australian shares lost 0.8 percent on Monday as globally-geared companies such as miner BHP Billiton and shopping mall owner Westfield fell on concerns that higher interest rates could crimp demand.
 
The benchmark Australian S&P/ASX 200 Index .AXJO shed 40.6 points to 5,192.3, based on the latest Reuters data. The index fell 0.11 percent on Friday, but is still up about 9 percent this year after having set successive record peaks last week.

"In the short term, interest rate concerns are going to weigh on sentiment," said Eric Betts, head of strategy with Nomura Australia Ltd.

A stronger-than-expected March jobs report in the United States revived interest rate concerns in the world's biggest economy.

"Rate-sensitive sectors like banks, property trusts and companies with large US exposure will be hit," Betts added.

Stocks to watch

* Automotive technology company Pacifica Group Ltd. jumped 20.7 percent to A$2.80 on saying that it was in talks with an unnamed party, which could lead to an offer being made for the company and potentially lead to change of control.

* Building products maker, Rinker Group Ltd., which gets about 80 percent of its profits from the US fell 0.5 percent to A$21.00 and Westfield Group, which has about 45 percent of its retail outlets in the United States, lost 1.5 percent to A$17.14.

* BHP Billiton Ltd./Plc. BLT.L, the world's top miner, dropped 0.6 percent to A$29.31 and the second-biggest miner, Rio Tinto Ltd./Plc.RIO.L shed 1.7 percent to A$82.25, after setting new peaks last week. US copper HGK6 and gold GCM6 futures ended lower on Friday as investors took profits after recent sharp gains, while oil CLc1 fell amid hopes for the restoration of supplies disrupted in Nigeria due to militant attacks on production facilities.

BHP is still up 29 percent this year, while Rio is up about 19 percent.

- REUTERS