Australian Markets Rebound but Dollar Extends Weakness

Marcus Jacob
21 Jan, 2014
New York City

Australian market indexes closed higher led by stronger financial stocks. Australian dollar eased further for the second week in a row. Nucoal Resources Limited plunged to a record low after New South Wales canceled its mining license on corruption charges.

[R]4:30 PM Sydney – Australian market indexes closed higher led by stronger financial stocks. Australian dollar eased further for the second week in a row. Nucoal Resources Limited plunged to a record low after New South Wales canceled its mining license on corruption charges.[/R]

Australian stocks closed higher on the back of weak resource stocks and stronger financial stocks.

Iron ore prices came under pressure after China reported better-than-expected economic data but the GDP increase dropped to a 14-year low.

Australian dollar eased to 88.20 U.S. cents and dropped to a three and a half year low and in stock trading turnover slid to 551 million shares worth $3.1 billion.

The ASX 200 index jumped 36.50 or 0.7% to close at 5,331.50 and the broader All Ordinaries gained 34.40 to 5,342.

Stocks in Review

Rio Tinto fell 69 to $65.80. BHP eased 5 cents to $37.95. Woodside Petroleum Limited slipped 43 cents to $38.37.

Westpac gained 26 cents to $31.79.

GUD Holdings Limited rose 0.3% to $5.74 and cleaning products maker said revenue for the first-half period ending in December declined 4.3% to $298.4 million from $311.8 million a year ago.

Net profit tumbled 73.7% to $4.78 million compared to $18.2 million and diluted earnings per share plunged to 6.6 cents from 25.5 cents a year earlier.

Norilsk Nickel OJSC, the Russia-based nickel and palladium producer sold its Thunderbox gold mine and processing facility in Western Australia to Saracen Metals Pty Ltd. for $40 million. The deal is expected to close in the first-half of 2014.

Watpac Limited slid 1% to 99.5 cents after it secured $83 million contract from the Australian Nuclear Science and Technology Organisation to design and construct the Nuclear Medicine facility in Lucas Heights, New South Wales.

Warrnambool Cheese & Butter Factory Co fell 0.6% to $9.31 after the Canadian dairy products maker Saputo Inc is likely to secure a majority stake before the takeover offer deadline by tomorrow evening.

At the close of the day, the company had acquired 47.85% voting control.