ASX Suffers 4.8% Weekly Loss, Nine Entertainment Lowers Outlook

Marcus Jacob
05 Jun, 2015
New York City

Australian market indexes extended weekly losses and the ASX 200 index plunged 4.8% in the week. Nine Entertainment lowered its outlook for the current year. National Australia Bank completed final phase of its $5.5 billion capital raising.

[R]5:30 PM Sydney – Australian market indexes extended weekly losses and the ASX 200 index plunged 4.8% in the week. Nine Entertainment lowered its outlook for the current year. National Australia Bank completed final phase of its $5.5 billion capital raising.[/R]

Australian market indexes traded lower in active trading and the Aussie dollar held firm in choppy trading as investors digested latest read on construction industry activities.

Construction industry activities expanded in May and the index edged up to 47.8 from 47 in April, the Australian Industry Group and the Housing Industry Association.

Australian dollar closed at 77 U.S. cents and in stock trading turnover fell to 725 billion shares worth $4.8 billion.

At close, the ASX 200 Index slid 5.80 to 5,498.50 and the broader All Ordinaries Index decreased 4.80 to 5,506.50.

For the week, ASX 200 plunged 4.8%.

In commodities trading, gold fell US$6 to US$1,178 an ounce and Brent crude edged up 0.04 cents to close at US$62.07 a barrel.

Australian Stock Movers

McPherson''s Ltd tumbled 19.8% to 75 cents after the kitchen and bathroom products maker lowered its pre-tax profit forecast for the year to decline to $15.5 million from $20.7 million reported in 2014.

Mesoblast limited gained 1.3% to $3.95 after the bio-therapeutics developer received $5.8 million from the Australian Government for Research & Development activities conducted during the 2014 financial year.

Nine Entertainment Co Holdings Ltd closed unchanged at $1.99 after the media and entertainment company forecasted operating profit for the year between $285 million and $290 million, compared to $311 million reported in the previous year.

National Australia Bank Ltd slipped 1.4% to $31.85 after the bank completed its capital raising program worth about $5.5 billion with the final offering of more than 28 million shares at the offer price of 28.50 plus $3.10 per entitlement.

The shares will be allotted on June 11 and can be traded on the Australian Stock Exchange from June 12.

In May, the bank raised $2.7 billion from institutional shareholders through 2-for-25 rights offer at $28.50 per share.

Recall Holdings Limited decreased 1.1% to $7.02 after the data protection services provider plans to renegotiate the terms of $2.2 billion takeover offer from U.S.-based Iron Mountain Inc and seek price higher than $8.50 a share.