Australian Home Loan Approval Rise 1.1%, Telstra Sells Directories Business

Marcus Jacob
13 Jan, 2014
New York City

Australian market indexes dropped in weak trading volume and miners closed lower. Home loan approvals in November increased 1.1% to 52,912. Telstra sold its Sensis directories business at a significantly lower than expected price. Saputo extended its offer one more time.

[R]4:30 PM Sydney – Australian market indexes dropped in weak trading volume and miners closed lower. Home loan approvals in November increased 1.1% to 52,912. Telstra sold its Sensis directories business at a significantly lower than expected price. Saputo extended its offer one more time.[/R]

Australian market indexes opened lower and closed at the low of the session on a weakness in iron and nickel miners.

Iron ore miners traded lower after analysts grew cautious on the rising inventories and growing ocean transportation and seasonal weakness in the demand.

The Australian Bureau of Statistics reported home loans approval in November grew 1.1% to 52,912 and total housing finance by value jumped 1.7% to $26.93 billion.

Australian dollar gained to 90.32 U.S. cents and in stock market trading turnover dropped to 482 million shares worth $2.6 billion.

The ASX 200 index slipped 20.30 or 0.4% to close at 5,292.10 and the broader All Ordinaries fell 19.50 to 5,296.80.

Stocks in Review

Rio Tinto fell 14 cents to $63.51. BHP rose 12 cents to $36.56. Woodside Petroleum Limited slipped 33 cents to $37.57.

Westpac decreased 21 cents to $32.01 and the bank expected to price its first dollar bond after market close on Monday to make early entry in the debt market.

Sealink Travel Group Ltd climbed 4.6% to $1.60 after the Australia-based cruise and tour operator acquired another vessel to increase its Sydney Harbour operations to meet the new contract requirements.

Telstra Corporation Ltd slid 1 cent to $5.25 after the telecommunications company agreed to sell 70% stake of its Sensis directories business for $454 million to U.S.-based private-equity firm Platinum Equity.

Western Areas Ltd surged 8.9% to $2.56 after Indonesia banned the export of raw ores that will increase nickel prices in international markets.

Warrnambool Cheese & Butter Factory Co increased 0.3% to $9.24 after the company said Canada based Saputo Inc increased its stake to 26.445% from 21.392% and extended its takeover offer to January 22. Saputo confirmed its $9 a share offer or $504 million.