Decline in Crude Oil and Iron Ore Hover Australian Stocks

Marcus Jacob
27 Nov, 2014
New York City

Australian market indexes wiped out most of the gains in the session and the Aussie dollar retained its downward bias. Price of crude oil and iron ore edged lower. Lend Lease agreed with the Sydney development authority to develop two sites at a cost of $1.9 billion.

[R]5:30 PM Sydney – Australian market indexes wiped out most of the gains in the session and the Aussie dollar retained its downward bias. Price of crude oil and iron ore edged lower. Lend Lease agreed with the Sydney development authority to develop two sites at a cost of $1.9 billion.[/R]

Stocks in Sydney opened higher but market gains in indexes eroded as the trading progressed.

At the close, indexes managed to close up on the strength in healthcare stocks and Woolworths reaffirmed its fiscal 2015 earnings outlook.

Australian dollar increased to 85.91 U.S. cents and in stock-trading turnover slid to 617 million shares worth $4.21 billion.

ASX 200 Index rose 4.70 to 5,400.90 and broader All Ordinaries Index gained 1.10 to 5,381.40.

In commodities trading, gold declined US$9 to US$1,190 an ounce and light crude oil fell 40 cents to US$73.69 a barrel.

Iron ore price declined 1.6% to US$68.49 a ton on the growing worries in the slowdown in Chinese construction industry.

Australian Stock Movers

Dick Smith Holdings Ltd increased 0.9% to $2.26 after the consumer electronics retailer forecasted sales for the second-half ending in December to climb about 10.1%.

The company said sales increase was driven by the strength in Apple products, while online sales were growing ""exceptionally well.""

The retailer plans to open 20 stores in Australia and New Zealand within the next three years and has targeted to open 450 stores by 2017.

Lend Lease Group gained 0.5% to $15.47 after the property and infrastructure developer reached a redevelopment agreement with Infrastructure NSW and Sydney Harbour Foreshore Authority

The company agreed to develop two sites at a cost of $1.9 billion.

Woolworths Limited jumped 2.2% to $31.75 after the food and liquor retailer said full-year estimated net profit growth between 4% and 7% despite softer-than-expected sales in the first-quarter.