Australian Indexes in 6-day Rally, Breville Plunges 18%

Marcus Jacob
21 Aug, 2014
New York City

Australian market indexes extended gains for the sixth session in a row but gains were trimmed in the afternoon after a private survey in China showed a marked decline in growth in manufacturing. Breville plunged 18% after CEO Jack Lord resigned. AMP net declined 3%.

[R]5:00 PM Sydney, Australia – Australian market indexes extended gains for the sixth session in a row but gains were trimmed in the afternoon after a private survey in China showed a marked decline in growth in manufacturing. Breville plunged 18% after CEO Jack Lord resigned. AMP net declined 3%.[/R]

Australian market indexes advanced for the sixth day in a row but momentum in trading had slowed considerable. Better than expected earnings from domestic companies supported market sentiment.

Stocks opened higher and trimmed most of the session’s gain after a private survey in China showed a marked decline in growth rate.

The latest private survey conducted by Markit and HSBC indicated purchasing manager’s index declined more than expected to 50.3 in August from 51.7 in July.

Australian dollar closed at 92.58 U.S. cents and on the stock market turnover jumped to 891 million shares worth $6 billion.

ASX 200 index edged up 4.30 to 5,638.90 and the broader All Ordinaries rose 4.80 to 5,634.

Stocks in Review

AMP Limited climbed 4.2% to $5.75 after the wealth management company reported revenue in the first-half ending in June climbed 8.4% to $647 million from $597 million a year ago period.

Net profit in the period dropped 3% to $382 million compared to $393 million and diluted earnings per share a year earlier slipped 13.1 cents from 13.6 cents a year earlier.

Underlying profit in the period jumped 16% to $510 million from $440 million a year ago.

The board increased interim dividend 9% to 12.5 cents per share compared to 11.5 cents per share for the 2013 interim dividend.

ASX Ltd gained 1.6% to $37.19 after the trading exchange operator stated revenue in the year ending in June jumped 3.1% to $808.5 million from $783.9 million a year ago period.

Net profit in the year soared 10% to $383.2 million compared to $348.2 million and diluted earnings per share increased to $1.99 from $1.96 a year earlier.

Breville Group Ltd plunged 18.6% to $7.10 after the consumer electrical appliances maker reported revenue in the year ending in June climbed 11.3% to $541.6 million from $486.5 million a year ago period.

Net profit in the year dropped 1.9% to $48.8 million compared to $49.7 million and diluted earnings per share slipped to 37.48 cents from 38.23 cents a year earlier.

The company said it will pay a final dividend of 13 cents up from 12 cents a year ago.

The household appliance maker said bad debts are written off when incurred, in year ending in June of $158 million compared to none a year earlier and doubtful debt charges declined $37 million from $124 million a year ago.

Mirvac Group slipped 0.8% to $1.89 after the real estate developer said revenue in the year ending in June soared 26.1% to $1.98 billion from $1.57 billion a year ago period.

Net income in the year surged 219.7% to $447.3 million compared to $139.9 million and diluted earnings per share climbed to 12.17 cents from 4.05 cents a year earlier.

Origin Energy Limited soared 4.2% to $14.78 after the energy, oil and gas producer reported revenue in the year ending in June dropped 1.6% to $14.52 billion from $14.75 billion a year ago period.

Net profit in the year surged 40% to $638 million compared to $461 million and diluted earnings per share jumped to 47.8 cents from 34.4 cents a year earlier.