Australian Index Drop 0.8%, Aussie Dollar Keeps Downward Bias

Marcus Jacob
08 Oct, 2014
New York City

Australian market indexes plunged and the weak commodities prices dragged resource stocks lower. Australian Bureau of Statistics withdrew July and August jobless rate estimate. Aldi, discount supermarket chain plans to invest $700 million in Western and South Australia.

[R]5:00 PM Sydney, Australia – Australian market indexes plunged and the weak commodities prices dragged resource stocks lower. Australian Bureau of Statistics withdrew July and August jobless rate estimate. Aldi, discount supermarket chain plans to invest $700 million in Western and South Australia.[/R]

Stocks in Sydney fell after the International Monetary Fund lowered its outlook on global growth.

The Australian Bureau of Statistics intends to revise the jobless rate data after problems in July and August employment data. The sudden jump in estimated jobless rate is expected to be revised down after economists questioned the data.

The department will revise the figures and replace the reported seasonally adjusted figures with the unadjusted figures.

Australian dollar traded at 87.58 U.S. cents and in stock trading turnover declined to 648.5 million shares worth $4.3 billion.

ASX 200 index slipped 42.90 or 0.8% to 5,241.30 and the broader All Ordinaries index slid 43.20 to 5,241.60.

Stocks in Review

Aldi, the Germany-based discount supermarket chain plans to invest $700 million building two distribution centres and as many as 130 stores in Western Australia and South Australia.

The first store is expected to open in 2016.

CSL Limited slid 0.3% to $73.08 after the biopharmaceutical company plans to invest $210 million in its Melbourne operations to double its production of albumin; the protein is in strong demand that used in emergency surgery.

Centuria Capital Ltd slipped 1.1% to 87 cents after the investment company divested St Kilda Road, Melbourne office for $82.1 million and prepared to launch $200 million Metro Diversified Fund.