Australian Resource Stocks Plunge in 2014

Marcus Jacob
31 Dec, 2014
New York City

Australian market indexes gained more than 1% but resource stocks plunged after coal and oil prices suffered worst decline since 2008. For the year, oil declined nearly 50%, and Santos Limited plunged 40%. BHP Billiton lost 22% and Rio Tinto declined 14%.

[R]5:30 PM Sydney – Australian market indexes gained more than 1% but resource stocks plunged after coal and oil prices suffered worst decline since 2008. For the year, oil declined nearly 50%, and Santos Limited plunged 40%. BHP Billiton lost 22% and Rio Tinto declined 14%.[/R]

Australian markets closed down on the final trading day of the year as investors took losses in the resource sector stocks.

Australian index, heavily weighted in mining stocks and banks advanced more than 1% but miners took a solid hit for the first time since 2008.

In 2014, Santos Limited declined 40%, BHP Billiton Limited dropped 22% and Rio Tinto Limited declined 14%.

However, banks continued to gain in 2014 and the largest bank Commonwealth Bank of Australia gained nearly 11% and Westpac Banking advanced 3%.

Qantas Airways Limited soared 120% in 2014 after the company took $2.84 billion in restructuring related losses and the carrier benefitted from the sharp plunge in oil prices.

Australian dollar closed at 82.07 U.S. cents and in stock-trading turnover slipped to 264 million shares worth $1.29 billion.

ASX 200 Index fell 5.60 to 5,411 and broader All Ordinaries Index slid 3.70 to 5,388.60.

For the week, ASX 200 increased 1.4% and for the month climbed 4% and for the quarter gained 1.4%.

For the six-month ASX 200 edged up 0.6% for the year rose 1.6%.

In commodities trading, gold jumped $13 to US$1,202 an ounce and light crude oil rose 51 cents to US$54.12 a barrel. Brent Crude declined 47 cents to close at US$60.11 a barrel.

Australian Stock Movers

Blackgold International Holdings Limited closed unchanged at 0.07 cents after the China-based coal miner and trader sold its Hong Kong subsidiary to Matex International Limited listed on Singapore stock exchange for $475 million.

The coal miner said revenues in the year ending in October surged 24.3% to $336.08 million from $270.3 million from the year ago period.

Net profit in the year declined 39% to $38.9 million compared to $63.7 million and diluted earnings per share dropped to 2.61 cents from 5.64 cents in the same period a year ago.

Range Resources Limited closed unchanged at 0.01 cents after the oil and gas explorer agreed to sell its Trinidad-based drilling services company for about $8.8 million.

VDM Group Ltd closed unchanged at 0.009 and the engineering construction company received a letter of demand for $2.72 million from BHP Billiton Limited for the Central Reg Camp Bulk Earthworks contract.

Qantas Airways Limited declined one cent to close at $2.40 and for the year the airline’s stock soared 120%.