ASX 200 in Sydney Extends Weekly Loss to 2.2%, Home Price Worries

Marcus Jacob
25 Sep, 2015
New York City

Australian markets extended weekly loss on Friday and resource stocks took another beating. Skilled Group shareholders approved merger with PMS Ltd. Myer, the department store retailer shot up 9% after broker comments.

[R]5:30 PM Sydney, Australia – Australian markets extended weekly loss on Friday and resource stocks took another beating. Skilled Group shareholders approved merger with PMS Ltd. Myer, the department store retailer shot up 9% after broker comments.[/R]

Australian market indexes closed lower and extended weekly losses after resource stocks led the decliners in Friday’s session.

Investors continued to speculate on the future direction of housing market as prices remain elevated and sales struggle on auction blocks.

Latest report from the Reserve Bank of Australia estimated population growth is expected to decline to 9-year low of 1.4% and underlying housing demand is near 174,000 units a year and rental rates are expected to weaken further with rental vacancy rates near a decade-high.

Australian dollar closed at 70.13 U.S. cents and in stock trading turnover jumped to 812.4 million shares worth $6.2 billion.

At close, the ASX 200 Index slipped 29.60 or 0.6% to 5,042.10 and the broader All Ordinaries Index decreased 25.60 to 5,076.70.

For the week, ASX 200 declined 2.2%.

In commodities trading, gold soared US$12 to US$1,147 an ounce and Brent crude future for immediate month delivery added 37 cents to US$48.54 a barrel.

Australian Stock Movers

Myer Holdings Ltd jumped 9% to 90.5 cents after a report from Citigroup suggested that the company may become a target of acquisition and set the stock target price of $1.10.

Prime Media Group Limited tumbled 13.9% to 52.5 cents after the broadcasting company said advertising revenues in the two months to August declined 6.9% and estimated similar level of decline in September.

Skilled Group Ltd increased 0.3% to $1.70 and the staffing services provider’s shareholders approved the merger with Programmed Maintenance Services Limited to form a company with $700 million in revenues.

Programmed Maintenance Services Limited stock jumped 3.5% to $2.68.

Vocation Ltd surged 37.8% to 13.5 cents after the education and training services provider agreed to repay $7.26 million to the Victorian Department of Education and Training department.

In 2014, Vocation was dropped from government funding of $20 million mainly due to providing substandard practices in two of its training businesses.

The firm is also facing three class action suits and reported a loss of $300 million in the year.