Aussie Dollar at New Yearly High Against Euro, Iron Ore at 2-month Low

Marcus Jacob
25 Aug, 2014
New York City

Australian indexes turned lower from six-year highs and the Aussie dollar closed at a new yearly high against the euro. Resource stocks were lower after iron ore prices declined to a two-month low and Moody

[R]5:00 PM Sydney, Australia – Australian indexes turned lower from six-year highs and the Aussie dollar closed at a new yearly high against the euro. Resource stocks were lower after iron ore prices declined to a two-month low and Moody’s lowered its view on Western Australian debt.[/R]

Australian market indexes traded lower and investors focused on domestic earnings and the Aussie dollar closed at a new yearly high against the euro.

The market indexes retreated from six-year highs after iron ore prices declined to a two-month low and oil prices also remained near the low of the month.

Iron ore price declined 2% to $90.10 a ton in the U.S. dollar, the lowest since June 18.

Resource stocks were hit hard after Moody’s lowered its view on the Western Australia’s debt to Aa1 from Aaa.

Australian dollar closed at 93.18 U.S. cents and on the stock market turnover slumped to 643 million shares worth $4.22 billion.

ASX 200 index slipped 10.70 or 0.2% to 5,634.90 and the broader All Ordinaries fell 7.70 to 5,632.80.

Stocks in Review

BlueScope Steel Limited plummeted 12.8% to $5.32 after the steel producer reported revenue in the year ending in June climbed 10% to $8.01 billion from $7.29 billion a year ago period.

Net loss in the year narrowed to $82.4 million compared to $107.1 million and diluted earnings per share dropped to 14.8 cents from 19.1 cents a year earlier.

Caltex Australia Ltd surged 7.4% to $27.45 after the oil refiner said revenue in the first-half ending in June soared 11% to $12.77 billion from $11.49 billion a year ago period.

Net profit in the period declined 15.7% to $164.8 million compared to $195.5 million and diluted earnings per share slipped to 60.2 cents from 72.2 cents a year earlier.

The refiner also announced 350 job cuts and announced interim dividend of 20 cents per share.

M2 Group Ltd increased 0.7% to $6.83 after the communication service provider stated revenue in the year ending in June surged 50% to $1.02 billion from $0.68 billion a year ago period.

Profit in the year jumped 53.2% to $67.1 million compared to $43.8 million and diluted earnings per share climbed to 37 cents from 27.02 cents a year earlier.

UGL Limited rose 0.3% to $6.81 after the diversified services provider reported revenue in the year ending in June dropped 4.2% to $1.82 billion from $1.90 billion a year ago period.

Profit in the year climbed 30.6% to $111.7 million compared to $28.1 million and diluted earnings per share surged to 16.5 cents from 6 cents a year earlier.

The utility services provider also announced plan to sell its property arm DTZ and did not declare final dividend.