Australian Indexes Ease, Rio Tinto to Invest $2.5 B in India

Marcus Jacob
13 Jan, 2015
New York City

Australian market indexes fell following weak crude oil prices. China reported better-than-expected December month trade surplus of $49.5 billion. Rio Tinto announced $2.5 billion investment in India and also plans to begin uranium shipments to India in two years.

[R]5:30 PM Sydney – Australian market indexes fell following weak crude oil prices. China reported better-than-expected December month trade surplus of $49.5 billion. Rio Tinto announced $2.5 billion investment in India and also plans to begin uranium shipments to India in two years.[/R]

Australian market indexes decreased and investors digested the latest trade surplus report release from China.

China’s exports in December increased 9.9% and imports gained 2.3% from a year ago month. The trade surplus in the month increased to US$49.5 billion.

Australian dollar closed at 81.69 U.S. cents and in stock-trading turnover jumped to 636 million shares worth $3.51 billion.

ASX 200 Index fell 18 or 0.3% to 5,404.70 and broader All Ordinaries Index slid 17.40 to 5,382.10.

In commodities trading, gold gained $9 to US$1,235 an ounce and light crude oil declined $2.23 to US$46.76 a barrel. Brent Crude declined 47 cents to close at US$60.11 a barrel.

Australian Stock Movers

Australian Careers Network increased 1 cent to close at $1.34 and the company agreed to acquire Phoenix Institute of Australia for an initial price of $2.25 million and additional payment of the same amount over three years based on certain milestones.

Capitol Health Ltd slipped 2.4% to 81 cents after the medical diagnostic imaging service provider signed an agreement to acquire Imaging @ Olympic Park for $25 million on a cash-free and debt-free basis.

Mirrabooka Investments dropped 2.7% to $2.53 after the investment company said total revenues in the first-half ending in December jumped 2.3% to $4.88 million from $4.77 million a year ago period.

Profit for the period declined 16.1% to $3.70 million compared to $4.41 million and earnings per share slumped to 2.63 cents from 3.18 cents in the same period a year ago.

Rio Tinto Limited fell 1.8% to $57.46 and the mining company plans to begin exporting Australian uranium to India in the next two years.

The company also plans to invest $500 million in diamond project at the Bunder site in the state of Madhya Pradesh and $2 billion in iron ore project in the state of Odisha, East India.