Australian Indexes Drop 1%

Marcus Jacob
09 Jul, 2014
New York City

Australian stocks dropped 1% following weak international markets. Resolute Mining Limited said gold production in financial year was 342,773 ounces, less than estimated. Aurizon Holdings and Baosteel inched closer to acquire Aquila Resources.

[R]5:00 PM Sydney – Australian stocks dropped 1% following weak international markets. Resolute Mining Limited said gold production in financial year was 342,773 ounces, less than estimated. Aurizon Holdings and Baosteel inched closer to acquire Aquila Resources.[/R]

Australian market indexes declined 1% following weak close in New York. Investors were also cautious after the latest domestic confidence index increased less than expected.

In thin and small cap focused trading, stocks opened lower and continued downward drift led by a weakness in resource stocks.

Australian dollar rose to 94.03 U.S. cents and stock trading turnover increased to 656 million shares worth $4.07 billion.

ASX 200 index dropped 58.40 or 1.1% to 5,452.50 and the broader All Ordinaries slumped 56.30 to 5,442.20.

Stocks in Review

Aurizon Holdings Limited slipped 1.4% to $4.98 and China-based steel producer Baosteel Resources lifted their stake above 90% in Aquila Resources and set the companies on course to complete the acquisition.

Baosteel is expected to develop Aquila''s $7 billion iron ore mine of West Pilbara and rail and port project with Aurizon.

Crown Resorts Limited decreased 1.9% to $15.48 after the casino operator obtained a restricted gambling license for more than $1 billion for proposed hotel resort development at Barangaroo on Sydney’s harbour.

The New South Wales government granted the 99 year license to operate a casino at the site with limited on-site gambling.

Yellow Brick Road Holdings Limited gained 0.7% to 73.5 cents after the financial service provider plans to acquire Resi Mortgage Corporation for $36 million.

The company secured firm commitments to raise $42 million through private placements.