Australian Markets Decline on Weak Emerging Market

Marcus Jacob
28 Jan, 2014
New York City

Australian stocks extended losses in the week after investors turned cautious on weaker than expected Chinese manufacturing data. The Aussie dollar eased and miners and banks closed down. ACCC supported a shift in supermarket discount strategy.

[R]4:30 PM Sydney – Australian stocks extended losses in the week after investors turned cautious on weaker than expected Chinese manufacturing data. The Aussie dollar eased and miners and banks closed down. ACCC supported a shift in supermarket discount strategy.[/R]

Australian market indexes extended losses and the dollar eased against international currencies.

Australian dollar dropped to 87.83 U.S. cents and in stock market trading turnover jumped to 820 million shares worth $5.3 billion.

The ASX 200 index dropped 65.80 or 1.3% to close at 5,175.10 and the broader All Ordinaries declined 66.30 to 5,188.

Stocks in Review

Rio Tinto dropped 85 cents to $64.31, BHP declined 73 cents to $36.31. Woodside Petroleum Limited slumped 16 cents to $37.97.

Westpac decreased 34 cents to $30.78 and Commonwealth Bank eased 0.8% to $74.13.

Woolworths declined 1.4% to $33.52 and Wesfarmers dropped 1.3% to $42.39 and Australian Competition Commission offered positive comments after retailers dropped cross-subsidy between food products and petrol.

The ACCC chairman Rod Sims said consumer benefit when retailers compete with each other for food prices or petrol prices but not necessarily when cross subsidies are used to lure customers.

Boral Limited fell 0.4% to $4.70 after the construction materials maker forecasted net profit before significant items in the first-half ending in December of around $90 million compared to $52 million a year earlier.

JB Hi-Fi Limited climbed 4.9% to $19.19 after the consumer products retailer expects total sales in the first-half ending in December jumped 6.8% to $1.94 billion from $1.82 billion a year earlier.

Net profit-after-tax for the period surged 10% to $90.3 million compared to $82.1 million a year ago period.

Oil Search Limited gained 1.5% to $8.26 after the oil and gas explorer reported total revenue for the year climbed 6% to $766.3 million from $724.6 million a year ago and revenue for the quarter ending in December dropped $210 million from $218.2 million a year earlier.

Oil Search added production in December slipped 1.77 million barrels of oil equivalent compared to from the 1.79 million barrels.

The company said its full-year production jumped 6% to 6.74 million barrels of oil equivalent, slightly above the guidance.

The company lifted 2014 production outlook between 12 million barrels and 15 million barrels of oil equivalent and the company reaffirmed that is on track to start liquefied natural-gas project in Papua New Guinea with Exxon Mobil Corporation.