Australian Market Struggle as Economic Slump Continues in China

Marcus Jacob
14 Sep, 2015
New York City

Australian market indexes struggled after the latest economic data from China showed weakening growth backdrop. Australian dollar edged higher. Oil Search rejected latest takeover overture from Woodside Petroleum.

[R]5:30 PM Sydney, Australia – Australian market indexes struggled after the latest economic data from China showed weakening growth backdrop. Australian dollar edged higher. Oil Search rejected latest takeover overture from Woodside Petroleum.[/R]

Australian stocks struggled after latest economic data from China disappointed traders.

China said factory output in August rose at less than expected 6.1% and the pace of fixed-asset investment growth declined to 11%, still healthy compared to most developed economies.

The latest economic data over the weekend offered yet another evidence that China may not be able to deliver on its annual economic growth target of 7%.

Australian dollar closed at 70.69 U.S. cents and in stock trading turnover added to 781 million shares worth $5.2 billion.

At close, the ASX 200 Index gained 25.40 or 0.5% to 5,096.50 and the broader All Ordinaries Index increased 24.20 to 5,120.50.

In commodities trading, gold slid US$3 to US$1,108 an ounce and Brent crude future for immediate month delivery fell 40 cents to US$47.74 a barrel.

Australian Stock Movers

AMA Group Ltd surged 16.2% to 84 cents after the vehicle protection products maker agreed to acquire the country’s largest accident repair group Gemini Accident Repair Centres Pty Ltd.

Under the terms, the company agreed to pay up to $100 million, in the next three-and-half years.

Macquarie Group Ltd jumped 2.3% to $77.57 after the financial services provider forecasted profit for the first-half to surge 40% helped by a weaker Australian dollar compared with the same period a year ago.

Oil Search Limited gained 0.5% to $7.49 after the oil and gas explorer rejected $11.6 billion offer from Woodside Petroleum and deemed the proposal inadequate.

Ten Network Holdings Limited soared 6.1% to 17.5 cents after the media company rejected the concerns of the Australian Competition and Consumer Commission that has held up 15% stake in the broadcaster to Foxtel.

The antitrust regulator said it requires more information regarding the $77 million deal.