Australian Building Approval Fall 4.7%, Trade Deficit Widens

Marcus Jacob
02 Oct, 2013
New York City

Stocks advanced in Sydney in light volume and new building approvals declined 4.7% in August from July but gained 7% from a year ago. Australian dollar edged higher and commodities prices fell. Mongolian government signaled additional approvals for the delayed Oyu Tolgoi copper and gold mine.

[R]4:45 PM Sydney – Stocks advanced in Sydney in light volume and new building approvals declined 4.7% in August from July but gained 7% from a year ago. Australian dollar edged higher and commodities prices fell. Mongolian government signaled additional approvals for the delayed Oyu Tolgoi copper and gold mine.[/R]

The ASX 200 index gained 8.8 points or 0.2% to close at 5,215.60 and the broader All Ordinaries Index added 8.6 points to 5,214.90.

New building approvals declined 4.7% to 13,687 in August, the Australian Bureau of Statistics said today in a report. The approvals rose 7% from a year ago month.

Australian Trade Deficit widened to $815 million in August as shoppers looked for bargains online from international vendors.

The Australian dollar gained to 93.56 U.S. cents and commodities prices ease. Gold dropped to $1,292 an ounce and light crude declined 29 cents to $102.40.

Stocks in Review

Weak commodities prices dragged miners and resource stocks.

BHP Billiton decreased 18 cents to $35.31, Rio Tinto declined 78 cents to $60.29 and Newcrest fell 45 cents to $10.95.

Paladin Energy increased 5 cents to 53 cents and the uranium miner announced plans to cut spending and lower salaries of executives.

Linc Energy plunged 14.75 cents or 10.5% to $1.25 after the company announced plans to delist from exchanges in Australia and Singapore.

Warnambool Cheese & Factory Co gained 1% after the company revised its fiscal 2014 operating earnings between $47 million and $52 million.