Hosuing Markets Risks Rise in Australia

Marcus Jacob
25 Mar, 2015
New York City

Australian market indexes bounced around looking for a direction after Reserve Bank highlighted rising risks in the housing market. Aussie dollar gained and stocks closed higher in active trading.

[R]5:30 PM Sydney – Australian market indexes bounced around looking for a direction after Reserve Bank highlighted rising risks in the housing market. Aussie dollar gained and stocks closed higher in active trading.[/R]

Australian market indexes lacked direction and bounced around searching for a direction after market indexes in New York closed down.

Reserve Bank of Australia highlighted in its Financial Stability report growing risks in housing market. The central bank said the speculative capital is flowing in the property market on the back of “easy money” monetary policy in larger economies.

Australian dollar closed at 78.76 U.S. cents and in stock trading turnover increased to 759 million shares worth $4.8 billion.

ASX 200 Index edged up 4.2 to 5,973.30 and broader All Ordinaries Index rose 2.60 to 5,937.10.

In commodities trading, gold added US$3 to US$1,190 an ounce and Brent crude rose 0.20 cents to close at US$54.91 a barrel.

Australian Stock Movers

Fonterra Shareholders’ Fund Limited plunged 8.4% to $5.40 after the New Zealand-based dairy cooperative said revenues in the first-half ending in January declined 13.7% to NZD$9.75 billion from NZD$11.30 billion in a year ago period.

Net profit in the period tumbled 15.7% to NZD$183 million compared to NZD$217 million and diluted earnings per share fell to NZD$0.10 from NZD$0.13 in the same period a year ago.

Nufarm Limited dropped 2.6% to $6.76 after the crop protection group reported revenues in the first-half ending in January jumped 4% to $1.18 billion from $1.14 billion in a year ago period.

Net profit in the period soared 23% to $23.2 million compared to $18.8 million and diluted earnings per share increased to 6.4 cents from 4.7 cents in the same period a year ago.

As of January, net debt dropped to $890 million from $1.02 billion from a year ago period.

UGL Limited fell 0.9% to $1.60 after the engineering services provider secured three-year contract worth about $120 million to provide plant services at GLNG liquefied natural gas project of Santos Limited in Queensland.