Australian Vehicle Sales Ease, Stocks Fall

Marcus Jacob
17 Nov, 2014
New York City

Australian market indexes traded lower despite the increase in iron ore and gold prices. Seasonally adjusted vehicle sales in October declined. Elders Ltd said annual net swung to profit. Pacific Brands is in talks to sell its brand collection division.

[R]5:30 PM Sydney – Australian market indexes traded lower despite the increase in iron ore and gold prices. Seasonally adjusted vehicle sales in October declined. Elders Ltd said annual net swung to profit. Pacific Brands is in talks to sell its brand collection division.[/R]

Australian market indexes opened lower and closed down despite the iron ore and gold prices advancing across Asia.

The Australian Bureau of Statistics reported seasonally adjusted total number of new motor vehicle sales in October declined 1.6% to 92,741 vehicles following 2.9% increase a month earlier.

On a yearly basis, new vehicle sales eased 0.5% after increasing 0.8% in September.

Sales of passenger, sports utility and other vehicles dropped 1%, 3% and 0.6% respectively.

Australian dollar closed at 87.88 U.S. cents and in stock-trading turnover rose to 561 million shares worth $3.33 billion.

ASX 200 Index dropped 41.80 or 0.8% to 5,412.50 and broader All Ordinaries Index slipped 37.20 to 5,396.60.

In commodities trading, gold jumped US$32 to US$1,190 an ounce and light crude oil increased $1.61 to US$75.82 a barrel.

Australian Stock Movers

Elders Ltd soared 5% to 21 cents after the agribusiness company reported net in the year ending in September swung to profit $2.98 million compared to a loss of $505 million in the previous year.

Net debt further reduced by 46% to $137.6 million.

Pacific Brands Limited jumped 2.1% to 49.5 cents after the clothes maker confirmed that it is discussions to sell its Brand Collective division, which owns and licensed brands Volley, Hush Puppies, Superdry and Mossimo.

Pacific Star Network Limited closed unchanged at 26 cents after the media company agreed to acquire publisher Morrison Media for about $10 million.