Australian Stocks Struggle on Energy Sector Weakness

Marcus Jacob
07 Jan, 2015
New York City

Australian market indexes opened higher but at close fell in choppy session with moderate volume. Real estate companies were in favor and investors sold energy related stocks after crude oil extended losses and fell to a new five-year low.

[R]5:30 PM Sydney – Australian market indexes opened higher but at close fell in choppy session with moderate volume. Real estate companies were in favor and investors sold energy related stocks after crude oil extended losses and fell to a new five-year low.[/R]

Australian stocks opened higher but after a day of volatile trading in moderate volume closed down.

Australian dollar closed at 80.78 U.S. cents and in stock-trading turnover slipped to 657 million shares worth $3.77 billion.

ASX 200 Index fell 11.20 or 0.2% to 5,353.60 and broader All Ordinaries Index slid 11.70 to 5,334.50.

In commodities trading, gold jumped $6 to US$1,213 an ounce and light crude oil declined $2.11 to US$47.93 a barrel. Brent Crude declined 47 cents to close at US$60.11 a barrel.

IPO

Appen Limited climbed 5% after the linguistic service provider priced its initial public offering at 50 cents per share.

The stock opened at 50 cents and closed at 52.5 cents.

Australian Stock Movers

Desane Group Holdings Limited closed unchanged at 88 cents after the real estate developer announced the sale of 26 of the 29 Rozelle residential apartments in the Sydney suburb for about $23.6 million.

The company is estimating total sale of $27 million after completion of the project.

Integrated Research Limited closed unchanged at 93 cents after the information technology company lifted profit forecast for the first-half ending in December between $7 million and $8 million compared to $4.5 million a year ago period.

Macquarie Group Ltd gained 0.6% to $57.42 after the infrastructure investor agreed to acquire 49.9% stake of offshore wind farm for $857 million or €720 million from Germany-based energy transmission company EnBW Energie Baden-Wuerttemberg AG.