Australian Indexes Rebound, New Home Sales Drop 2.3%

Marcus Jacob
30 Jun, 2015
New York City

Australian indexes rebounded on the last day of the week, month, quarter and half-year. The Aussie dollar struggled but resource stocks gained and banks led the advance. Kathmandu Holdings Ltd, the outdoor apparel retailer confirmed a takeover bid.

[R]5:30 PM Sydney – Australian indexes rebounded on the last day of the week, month, quarter and half-year. The Aussie dollar struggled but resource stocks gained and banks led the advance. Kathmandu Holdings Ltd, the outdoor apparel retailer confirmed a takeover bid.[/R]

Indexes in Australia and in Asia recovered on the overtures from Greece to sit down one more time with international lenders and strike an agreement to avert default as early as next week.

The seasonally adjusted total number of new home sales in May fell 2.3%, the first decline in 2015, compared to 0.6% increase in April, the Housing Industry Association said today.

During the month, new sales of multi-units climbed 7.6% reported a new record with sales volumes soared to 26.7% over the three-months to May.

Australian dollar closed at 76.93 U.S. cents and in stock trading turnover jumped to 988 million shares worth $5.9 billion.

At close, the ASX 200 Index increased 36.50 or 0.7% to 5,459 and the broader All Ordinaries Index gained 34.60 to 5,451.20.

For the month, ASX 200 declined 5.4% and for the quarter plunged 6.5% but for the six-month rose 0.9%.

In commodities trading, gold fell US$6 to US$1,178 an ounce and Brent crude edged down 0.01 to close at US$62 a barrel.

Australian Stock Movers

Kathmandu Holdings Ltd surged 25.6% to $1.57 after the New Zealand-based outdoor clothing and equipment retailer confirmed the receipt of a takeover offer from the rival domestic Briscoes Group.

Briscoes already holds 19.9% stake in the company.

Tassal Group Limited jumped 6.7% to $3.33 after the salmon farmer and retailer signed an agreement for salmon sea-food supply through its De Costi to supermarket operators Aldi for one year and to Woolworths Limited for additional three-years.

The supplies are scheduled to begin from October 1.

Woolworths Limited slid 0.1% to $26.96 after the supermarket operator plans to divest its 10-store gourmet food chain Thomas Dux, upscale grocery chain, despite the chain turning profitable in a less than a year.

Westpac Banking Corp rose 0.4% to $32.15 after the banking and financial services provider said its venture capital fund invested in unregulated virtual currency in the U.S.-based bitcoin start-up Coinbase for an undisclosed amount.