Australian Markets Trim Weekly Loss of 2%, Home Prices Advance

Marcus Jacob
01 May, 2015
New York City

Australian market indexes traded higher and trimmed weekly losses to 2% as home prices in capital cities across the nation continue to rise. Atlas Iron plans to reopen two of the three recently closed iron ore mines.

[R]5:30 PM Sydney – Australian market indexes traded higher and trimmed weekly losses to 2% as home prices in capital cities across the nation continue to rise. Atlas Iron plans to reopen two of the three recently closed iron ore mines.[/R]

Australian market indexes closed higher in moderate trading and home prices in capital cities rose and China said manufacturing index held steady last month.

Home prices in capital cities across Australia gained, led by the increase in Sydney. Prices failed to rise in Canberra.

Australian dollar closed at 79.73 U.S. cents and in stock trading turnover dropped to 674 million shares worth $4.6 billion.

At close, the ASX 200 Index increased 24.40 or 0.4% to 5,814.40 and the broader All Ordinaries Index gained 25.10 to 5,798.80.

For the week, the ASX 200 index declined 2%.

In commodities trading, gold tumbled US$22 to US$1,182 an ounce and Brent crude fell 0.51 cents to close at US$66.27 a barrel.

Australian Stock Movers

Atlas Iron Limited halted at 12 cents last month and the iron ore miner said it plans to reopen two of the recently closed mines in Pilbara region of Western Australia and the company expects to be cash-flow positive in May.

Macmahon Holdings Limited surged 16.3% to 0.05 cents after the contract mining services provider reached settlement with Cobar Management Pty Ltd to strengthen its restructuring program after securing a contract worth $19 million and the company said it will repay debt.

Mantra Group Ltd climbed 2.3% to $13.04 after the online accommodation services provider forecasted net profit for the year in the range of $35 million to $36.5 million from a year ago period.

Mantra Group plans to report its audited financial results on August 27.

Orora Limited fell 0.4% to $2.20 after the packaging company plans to raise US$250 million through bond offering in the U.S. private placement market for US$100 million bonds with an 8-year maturity and US$150 million bonds with a 10-year maturity.

Virgin Australia Holdings Ltd slipped 1.9% to 50 cents after the discount airline reported loss in the third-quarter ending in March narrowed to $28.3 million from $74.8 million in the same period a year ago.

The airline company said passenger’s revenue in the quarter increased 1.3% to $5.62 million from $5.55 million and load factor held at 77.1% compared to 77.3% in a year ago period.