Australian Indexes Rebound, Dollar and Oil Drops

Marcus Jacob
26 Nov, 2014
New York City

Australian market indexes rebounded in thin trading and the Aussie dollar declined. Crude oil dropped 2% and fell near $74 a barrel in Asia and Sydney trading.

[R]5:30 PM Sydney – Australian market indexes rebounded in thin trading and the Aussie dollar declined. Crude oil dropped 2% and fell near $74 a barrel in Asia and Sydney trading.[/R]

Australian market indexes rebounded in thin trading and stocks in resource and banking sectors led the gainers.

The Aussie dollar remained under pressure as the crude oil prices edged lower and analysts lowered the price range to as low as $60 a barrel as early as next year.

The Australian Bureau of Statistics reported seasonally adjusted construction in the third quarter ending in September dropped 2.2% from the previous quarter, higher than the estimated 1.9% decline in the September quarter.

Australian dollar slipped to 85.36 U.S. cents and in stock-trading turnover declined to 628 million shares worth $3.95 billion.

ASX 200 Index jumped 61.40 or 1.1% to 5,396.20 and broader All Ordinaries Index increased 59.40 to 5,380.30.

In commodities trading, gold gained US$2 to US$1,199 an ounce and light crude oil dropped $1.69 to US$74.09 a barrel.

Australian Stock Movers

Ausdrill Limited plunged 10.9% to 45 cents after the mining and energy service provider forecasted revenues may decline to US$3.5 million per month for the next eight months mainly due to cutback at the Stage 2 operation at the Syama sulphide open pit.

GWA Group Ltd climbed 5.6% to $2.85 after the construction material supplier agreed to sell its subsidiary Dux Manufacturing Limited and its related assets to Japan-based Noritz Corporation for $46 million on a debt and cash free basis.

Rio Tinto Limited rose 1.6% to $58.39 after the mining company became the target of speculation that the company may receive fresh merger overtures from U.K. based Glencore Plc.

Santos Ltd gained 1.3% to $11.98 after the oil and gas producer said it has pre-sold thirteen liquefied natural gas cargo that is likely to be produced at the start-up of Gladstone LNG project in the second-half of next year.

Woodside Petroleum Limited increased 0.5% to $39.56 after the oil and gas explorer entered into a contract for Reconnaissance License for 12 months with the national oil company in Morocco.

To contracts are subject to Ministerial approval with the National Oil Company of the Kingdom of Morocco.