Australian Markets Drop on Oil and Iron Ore Weakness

Marcus Jacob
09 Dec, 2014
New York City

Australian market indexes plunged following a sharp decline in oil and gold prices. Australia

[R]5:30 PM Sydney – Australian market indexes plunged following a sharp decline in oil and gold prices. Australia’s largest export, iron ore, also declined on the worries that steelmakers are delaying orders in the hopes of cheaper prices in the next year.[/R]

Australian market indexes plunged following weak oil and gold prices and on the rising worries that the slowdown in China will further depress the price of iron ore and commodities.

On the economic front, National Australia Bank’s business survey showed, business confidence in November dropped to +1 from +5, the lowest level since federal elections of 2013 and business conditions declined to +5 from +13.

Australian dollar closed at 82.41 U.S. cents and in stock-trading turnover jumped to 940 million shares worth $5.66 billion.

ASX 200 Index declined 90 or 1.7% to 5,282.70 and broader All Ordinaries Index dropped 90.60 to 5,258.30.

In commodities trading, gold climbed US$7 to US$1,201 an ounce and light crude oil declined $2.79 to US$63.05 a barrel.

Australian Stock Movers

BHP Billiton Limited plunged 4.1% to $28.88 and the mining company said the new company that it intends to create from proposed demerger will be called as South32.

Bendigo and Adelaide Bank Ltd dropped 2.5% to $12.68 after the financial service provider successfully priced its Torrens Series 2014-2 Trust worth $600 million in five tranches with maturities between three to seven years.

Finbar Group Limited closed unchanged at $1.26 after the apartment developer received a 21 storey building development approval in South Perth from the Metro Central Joint Development Assessment Panel with an estimated retail value at $120 million.

Origin Energy Ltd declined 4.8% to $10.80 after despite an announcement from the electricity and gas retailer discovered a potential commercial quantity of gas off the Victorian coast.