Australian New Home Sales Flat, IAG and NAB in Focus

Marcus Jacob
30 Oct, 2014
New York City

Australian market indexes gained despite the international terms of trade worsening in September. New home sales in the month were nearly unchanged from August. Echo Entertainment soared on positive outlook.

[R]5:30 PM Sydney – Australian market indexes gained despite the international terms of trade worsening in September. New home sales in the month were nearly unchanged from August. Echo Entertainment soared on positive outlook.[/R]

Australian market indexes increased and banks led the gainers and the Aussie dollar advanced.

Australian dollar dropped to 87.58 U.S. cents and in stock-trading turnover jumped to 881 million shares worth $5.1 billion.

ASX 200 Index increased 28.50 or 0.5% to 5,476.20 and broader All Ordinaries Index gained 26 to 5,457.10.

In commodities trading, gold fell US$20 to US$1,210 an ounce and light crude oil increased 78 cents to US$82.20 a barrel.

The Housing Industry Association reported new home sales in September were nearly flat compared to the previous month, after a 3.3% jump in August.

The Australian Bureau of Statistics said country''s terms of trade slumped 3.1% in the September quarter.

The department added export price index in September quarter declined 3.9% and through the year export price index plunged 9.5%.

Import price index in September dropped 0.8% and through the year import price index slipped 1.1%.

Australian Stock Movers

Coca-Cola Amatil Ltd jumped 4.5% to $9.07 after the alcohol-free beverage maker agreed to acquire 29.4% stake in the Indonesian business at $541 million and valued the Indonesian business at $1.7 billion.

Echo Entertainment Group Ltd climbed 6.2% to $3.76 after the leisure and casino gambling service provider estimated first-half ending in December to rise as much as 31% and earnings before interest, tax, depreciation and amortisation between $245 million and $260 million.

Normalised international VIP Rebate revenues soared 78% to $231 million.

Insurance Australia Group Ltd jumped 2.5% to $6.45 after the insurance company said gross written premium in the in the year jumped 3% to $9.78 billion and net profit in the year surged 59% to $1.23 billion from a year ago period

National Australia Bank Ltd gained 0.8% to $34.64 after the financial service provider reported net interest income in the year ending on September 14 jumped 2.9% to $13.74 billion from $13.35 billion a year ago period.

Net income in the year fell 1.1% to $5.30 billion compared to $5.36 billion and diluted earnings per share jumped to 218.30 cents from 224 cents in the same period a year ago.

The country''s fourth biggest lender unveiled plans to exit from its troubled U.K. businesses that including of Yorkshire and Clydesdale branches which responsible for annual profit declines and charged for bad and doubtful debt.

The bank’s chief executive Andrew Thorburn said “it is disappointing to record a full-year result that includes $1.5 billion or £800 million after tax in UK conduct provisions.”