Australian Markets Advance Despite Asia-Wide Declne

Marcus Jacob
27 Jul, 2015
New York City

Australian market indexes in thin trading rebounded as metal prices hover near new multi-year lows and market indexes in Shanghai plunge 8%. Atlas Iron Limited plunged 70% after a 16-week trading halt.

[R]5:30 PM Sydney – Australian market indexes in thin trading rebounded as metal prices hover near new multi-year lows and market indexes in Shanghai plunge 8%. Atlas Iron Limited plunged 70% after a 16-week trading halt.[/R]

Australian market indexes extended weeklong losses in the morning session on a regional market weakness driven by a sharp plunge in Shanghai indexes.

Shanghai benchmark index plunged 8%, the largest one-day decline in eight years as the local index returns to volatility after a period of one week of relative calm.

In thin trading, ASX 200 index rebounded as commodities continue to test new multi-year lows.

Australian dollar closed at 72.93 U.S. cents and in stock trading turnover fell to 533 million shares worth $3.6 billion.

At close, the ASX 200 Index gained 23.80 or 0.4% to 5,589.90 and the broader All Ordinaries Index increased 22.40 to 5,579.20.

In commodities trading, gold gained US$14 to US$1,110 an ounce and Brent crude rose 0.17 cents to close at US$54.79 a barrel.

Australian Stock Movers

Atlas Iron Limited tumbled 70% to 0.036 cents after a 16-week trading halt and in the period iron ore miner has raised $87 million, far below its target of $180 million.

Alkane Resources Limited plunged 12% to 22 cents after the gold producer said total revenues in the year ending in June was $101.9 million through the sale of 70,734 ounces.

Finbar Group Limited jumped 2.4% to $1.27 after the residential property developer forecasted net profit for the year ending in June of about $25.5 million.

The company added pre-sale contracts in the year soared 68.2% to $402 million compared to $239 million in a year ago.

Navitas Limited declined 6.4% to $4.27 after the educational services provider reported group revenues in the year ending in June soared 12% to $980.3 million from $878.2 million in a year ago period.

Net income in the year surged 39% from a year ago period to $71.8 million compared to $51.6 million and diluted earnings per share jumped to 19.1 cents from 13.7 cents.

Westpac Banking Corp rose 0.4% to $34.36 after the financial services provider intends to offer perpetual hybrid securities worth about $750 million with an issue price of $100 each.

The margin is expected in the range of 4% to 4.20% per year with the scheduled date to convert into ordinary shares on March 22, 2023.