Australian Stocks Trade in Tight Range

Marcus Jacob
08 Jul, 2014
New York City

Australian market indexes closed down after trading in a narrow range. Trading volume was weak even though banks and resource stocks dominated the session. Aristocrat Technologies raised $375 million for its $1.4 billion bid to acqure Video Gaming Technologies.

[R]5:00 PM Sydney – Australian market indexes closed down after trading in a narrow range. Trading volume was weak even though banks and resource stocks dominated the session. Aristocrat Technologies raised $375 million for its $1.4 billion bid to acqure Video Gaming Technologies.[/R]

Australian market indexes traded in a narrow range and at closed declined but trading volume was weak. The traditional market leaders, banks and resource stocks, dominated trading.

Australian dollar jumped to 93.92 U.S. cents and stock trading turnover climbed to 612 million shares worth $3.3 billion.

ASX 200 index slid 8 to 5,510.90 and the broader All Ordinaries fell 7.80 to 5,498.50.

Stocks in Review

Altona Mining Ltd surged 26.5% to 21.5 cents after the copper producer sold its Finland-based assets for $101 million and plans to make a cash payment of 15 cents per share to shareholders.

Aristocrat Technologies Limited slipped 1.7% to $5.30 after the gaming devices maker raised $375 million to finance $1.4 billion acquisition of the U.S.-based Video Gaming Technologies.

The purchase price of VGT is equivalent to 8.3 times $157 million earnings of Aristocrat in 2013.

Calibre Group Limited climbed 4.9% to 43 cents after the engineering construction company’s subsidiary G&S Engineering Services Pty agreed to acquire Perth-based Ark Maintenance for about $3.3 million in cash and shares.

Country Road Limited closed unchanged at $16.36 and apparel retailer lifted profit forecast for the year between $87 million to $95 million from $55.9 million a year ago.

G8 Education Limited gained 0.9% to $4.64 after the educational and child care services provider agreed to acquire more centers for $25.7 million.

NewSat Limited declined 3.5% to 28 cents and the satellite communication provider secured US$11.7 million contract for three year to supply Jabiru-2 satellite transmission capacity to Australia, Papua New Guinea, Timor Leste and the Solomon Islands.