Australian Indexes Trend Lower, Banks and REITs Lead Gainers

Marcus Jacob
18 Jun, 2013
New York City

Australian market indexes trended lower and the dollar remained under pressure. The rate setting committee at the central bank showed willingness to lower reference rates despite the recent weakness in the dollar. Lynas decided to drop a defamation case against a Malaysian activist group.

[R]5:00 PM Sydney – Australian market indexes trended lower and the dollar remained under pressure. The rate setting committee at the central bank showed willingness to lower reference rates despite the recent weakness in the dollar.[/R]

Australian stocks rebounded from the lows of the day in the late afternoon trading but still closed down at the close.

In the latest minutes of meeting, monetary policy committee showed willingness to lower cash rate despite the recent weakness in the Australian dollar. The Reserve Bank of Australia noted the weak dollar has been a drag on the economy outside the mining sector.

The ASX 200 index fell 12.50 to close at 4,813.40 and the broader All Ordinaries slid 10.40 to 4,794.60.

Australian dollar closed at 95.11 U.S. cents and in stock trading turnover was advanced to 809 million worth $4.3 billion.

Stocks in Review

Rio Tinto fell 10 cents to $53.55 and BHP down 11 cent to $32.69. Woodside Petroleum Limited lowered 8 cents to $34.83.

David Jones Limited slid 3 cents to $2.39 and Breville Group slipped 7 cents to $7.40.

Woolworths Limited slipped 1% to $32.03 after the food and liquor retailer released final results of tender offer for allotment of its outstanding series of notes and accepted for purchase all $244.89 million of the notes.

Mirvac Group gained 5 cents to $1.65. Lend Lease slumped 20 cents to $8.45.

Westpac decreased 2 cents to $29.45, Commonwealth rose 0.03% to $68.49 and National Australia Bank fell 0.6% to $29.74 and ANZ slid 0.3% to $28.38.

AJ Lucas Group Limited slid 0.8% to $1.24 after the energy infrastructure developer secured $85.5 million contract with Queensland Gas Company for works for gas and water trunk-lines in the northern region for the Queensland Curtis LNG project.

Elders Limited tumbled 21.2% to 7 cents said it rejected the bid for Rural Services business and reached into final negotiations for the sale of Futuris Automotive.

Lend Lease Group declined 2.3% to $8.45 after the real estate developer reiterated that its full-year earnings guidance will meet market expectations. The company also launched the Jem Partners Fund to buy Lend Lease’s 25% equity interest in suburban retail and office asset in Singapore.

Lynas Corporation Limited dropped 2.3% to 43 cents after the chief executive Eric Noyrez of rare earth producer said the company is likely to drop legal action against activist group.

The company has dropped defamation action against Malaysian green group Save Malaysia Stop Lynas.

The company added production will be lower due to softening market conditions in Europe, Australia and Asia.