Australian Indexes Down on Suncorp Write-down

Marcus Jacob
27 May, 2014
New York City

Australian market indexes meandered in the session and trading turnover was near the low of the year so far. Suncorp announced a $500 million write-down and estimated difficult time for the industry. Donaco International plunged 10% on rising tensions in Vietnam.

[R]5:00 PM Sydney – Australian market indexes meandered in the session and trading turnover was near the low of the year so far. Suncorp announced a $500 million write-down and estimated difficult time for the industry. Donaco International plunged 10% on rising tensions in Vietnam.[/R]

Australian market indexes struggled in choppy trading and trading turnover in dollar terms continued to lag last year’s data.

Stocks were under pressure after Suncorp announced a $500 million write-down and OzForex reported first annual result as a public company that fell below expectations.

Australian dollar gained to 92.68 U.S. cents and stock market trading turnover rose to 599 million shares worth $3.2 billion.

ASX 200 index slid 1.10 to 5,511.70 and the broader All Ordinaries edged up 0.40 to 5,490.80.

Stocks in Review

Rio Tinto rose 26 cents to $61.21 after the mining company signed an agreement with government of Guinea to develop a project worth $20 billion of iron ore, port and rail to commence by the end of 2020.

BHP slid 2 cents to $37.89. Woodside Petroleum Limited gained 0.1% to $41.86.

Westpac Banking Corp added 16 cents to $34.32.

ALS Limited surged 8.9% to $7.96 after the testing and inspection services provider reported revenue in the year ending in March were nearly flat at $1.50 billion from a year ago.

Net profit in the year declined to $154.4 million compared to $227.3 million and diluted earnings per share dropped to 40.7 cents from 66.3 cents a year earlier.

The company added underlying profit in the year climbed 28% to $171.9 million.

Donaco International Limited plunged 10% to $1.03 and the operator of five-star resort and casino in Vietnam faces a sharp fall in tourists in the wake of rising tensions between China and the emerging economy.

Ozforex Group Ltd plunged 18.9% to $2.65 after the online international payment services provider reported revenue in the year ending in March climbed 40% to $78.25 million from $55.74 million a year ago period.

Net profit in the year declined 7% to $15.97 million compared to $17.14 million and diluted earnings per share slipped to 6.83 cents from 7.52 cents a year earlier.

Suncorp Group Ltd slumped 1.9% to $13.42 after the insurance and banking services provider wrote down about $500 million in its life insurance business with no impact on cash earnings and dividend.