Aussie Dollar at 5-year Low, Skilled Group Rejects Takeover Offer

Marcus Jacob
22 Jan, 2015
New York City

Australian dollar traded near its five-year low and energy and mining companies led the advance in Sydney. Skilled Group rejected a takeover offer. Amcor Limited said chief executive will retire after leading the consumer packaging company for a decade.

[R]5:30 PM Sydney – Australian dollar traded near its five-year low and energy and mining companies led the advance in Sydney. Skilled Group rejected a takeover offer. Amcor Limited said chief executive will retire after leading the consumer packaging company for a decade.[/R]

Australian market indexes increased and the Aussie dollar declined ahead of closely watched decision from the European Central Bank later this evening.

Global investors have raised expectations that the European Central Bank will follow through its signal three months ago to offer a large monetary stimulus of as much as 50 billion euros a month for the next two years to ward anchoring deflationary forces in the euro zone.

The Housing Industry Association reported new homes sales in November jumped 2.2%, following a 3% rise in October. Apartment sales climbed to its highest level since 2003.

Separately, a survey from the Melbourne Institute announced inflationary expectations in January fell 0.2 percentage points to 3.2%.

Australian dollar closed at 80.65 U.S. cents and in stock-trading turnover jumped to 849 million shares worth $4.89 billion.

ASX 200 Index gained 26.50 or 0.5% to 5,419.90 and broader All Ordinaries Index rose 23.10 to 5,390.50.

In commodities trading, gold fell US$5 at US$1,293 an ounce and light crude oil added US$1.31 to US$47.78 a barrel. Brent crude increased 44 cents to close at US$49.47 a barrel.

Australian Stock Movers

Retail Food Group Limited fell 0.2% to $5.86 after the multi-brand food franchisor signed an agreement with China-based Tian Jin Sen Yong Tai Co Limited, a subsidiary of GouBuLi to launch its newly acquired Gloria Jean’s business in China.

Skilled Group Ltd declined 5% to $1.43 after the workforce solution provider rejected a takeover proposal of about $640 million from rival Programmed Maintenance Services Ltd.

The company said in a statement to the Australian Securities Exchange “proposal undervalues the company and it is not clear that a merged business would be better strategically positioned than Skilled is at present.""

Stockland Corporation Ltd closed unchanged at $4.23 after the office and residential construction company agreed to acquire a $67 million site in Queensland and plans to develop a new waterfront lots and bay-side 1,500 new homes with retail value of $590 million.

Virgin Australia Holdings Ltd jumped 2.2% to 47 cents after the discount airline plans to remove fuel surcharges on flights to the U.S. and reduce fees on the trans-Pacific route for as much as $50 following the decline in crude oil prices.