Australian Index Gains 0.7% in First-Half, Bank Loans Rise 0.4% in May

Marcus Jacob
30 Jun, 2014
New York City

The ASX 200 dropped 1.8% and for the quarter gained 0.5% and for the first-half increased 0.7%. Total loans issued by banks increased 0.4% in May driven by 0.5% increase in loans to households and 0.2% rise in business loans. Woolworths offered its final offer for Country Road.

[R]5:00 PM Sydney – Australian stocks closed lower and for the month, the ASX 200 dropped 1.8% and for the quarter gained 0.5% and for the first-half increased 0.7%. Total loans issued by banks increased 0.4% in May driven by 0.5% increase in loans to households and 0.2% rise in business loans. Woolworths offered its final offer for Country Road.[/R]

Australian stocks declined ahead of earnings season in two weeks and awaited announcements from European Central Bank and additional economic data from China.

Investors have looked to overseas markets in the absence of domestic economic news and earnings season in two weeks.

The Reserve Bank of Australia reported total credit in May gained 0.4% with 0.5% increase in credits to household and 0.2% for businesses and personal spending slid 0.3%.

Australian dollar fell to 94.22 U.S. cents and stock trading turnover declined to 629 million shares worth $4.04 billion.

ASX 200 index slipped 49.40 or 0.9% to 5,395.70 and the broader All Ordinaries fell 47.10 to 5,382.

For the month, ASX 200 dropped 1.8% and for the quarter gained 0.5% and for the first-half increased 0.7%.

Stocks in Review

Country Road Limited closed unchanged at $16.80 after the Africa-based retailer Woolworths Holdings Limited today submitted its final takeover offer of $213 million for the company.

Last week, the retailer evaluates all cash offer of $17 per share.

Dick Smith Holdings Limited increased 1.5% to $1.96 after the consumer electronics retailer reported pro forma sales in the year ending on June 29 edged up to $1.23 billion compared to earlier estimate of $1.226 billion and net profit of $40 million on domestic sales improvement.

Henderson Group Plc gained 1.4% to $4.30 after the investment manager agreed to acquire North America-based Geneva Capital Management for about US$200 million.

Sydney Airport Limited slid 0.2% to $4.22 and the New South Wales government plans to invest approx $500 million to improve traffic around the airport.

Stockland Limited slipped 1.5% to $3.88 after the property developer acquired Brownes Dairy head office an industrial property in Balcatta, Perth for $53.5 million.