Australian New Home Sales Surge 7.5%, Stocks Extend Losses

Marcus Jacob
10 Jan, 2014
New York City

Australian new home sales surged 7.5% on a 30% surge in multi-unit sales. Market indexes extended losses on growing worries about China

[R]4:30 PM Sydney – Australian new home sales surged 7.5% on a 30% surge in multi-unit sales. Market indexes extended losses on growing worries about China’s economic expansion and lower than expected trade deficit.[/R]

Australian indexes extended losses and closed down for the week on growing anxieties linked to China’s demand for iron ore and less than expected trade surplus in the second largest economy in the world.

Australian dollar slid to 89.07 U.S. cents and in stock market trading turnover fell to 586 million shares worth $3.1 billion.

The ASX 200 index fell 12 to close at 5,312.40 and the broader All Ordinaries slid 11.20 to 5,316.30. For the week, ASX 200 index slipped 0.7%.

New home sales in Australia increased 7.5% in November on 30.5% surge in multi-unit housing and 3.6% rise in single family homes, The Housing Industry Association reported today.

Stocks in Review

Rio Tinto dropped $1.65 to $63.65. BHP fell 53 cents to $36.44. Woodside Petroleum Limited slid 10 cents to $37.90.

Westpac slipped 10 cents to $31.94.

Alumina Limited slumped 2.2% to $1.12 after the metals company said pre-tax charge for 2013 is expected to be $17 million.

After its partner U.S.-based Alcoa Inc posted a steep quarterly loss of $1.7 billion impairment charge and said its venture with Alumina will pay $400 million to resolve bribery charges in Bahrain.

As Alcoa pleaded guilty to a criminal charge and agreed to pay $384 million in penalties to end investigations by the Department of Justice and the Securities and Exchange Commission regading bribery allegations made by a Bahraini for certain legacy alumina contracts with Aluminium Bahrain (Alba).

Integrated Research Limited surged 10.4% to $1.16 after the Australia-based software technology lifted its half-year profit guidance in the range of $4.4 million to $4.8 million from a year earlier.

Twenty-First Century Fox Inc declined 4.7% to $36.31 after the media and entertainment company said it would be de-list from the ASX and move to the NASDAQ stock market to increase its liquidity.

The company put the proposal with the shareholder in March or April and expects to de-list from the Australian Securities Exchange the following month.

Telstra Corporation Limited closed unchanged at $5.26 and the company paid largest fine of $510,000 for taking longer than usual to reconnect land line services after natural disaster last year.

The telecom carrier said it will continue to make investments in its network and learn from the experience in how to speed its recovery efforts after natural disasters.