Australian Markets Faltered Despite China Growth Data

Marcus Jacob
19 Oct, 2015
New York City

Australian market indexes traded volatile and the Aussie dollar held near its recent high. Iron ore prices firmed up after China reported better-than-expected 6.9% economic growth. Treasury Wine Estate completed capital raising to pay for the wine unit of Diego in the U.S. and U.K.

[R]5:30 PM Sydney, Australia – Australian market indexes traded volatile and the Aussie dollar held near its recent high. Iron ore prices firmed up after China reported better-than-expected 6.9% economic growth. Treasury Wine Estate completed capital raising to pay for the wine unit of Diego in the U.S. and U.K.[/R]

Australian market indexes closed higher after a day of volatile trading.

Stocks opened weak and struggled but gained some traction after China reported better-than-expected third-quarter economic growth.

Second-largest economy expanded at 6.9%, more than what many economists were looking for the growth rate of 6.8%.

The growth rate was good for Australian resource exporters and supported a minor rally in the sector in Sydney trading.

Australian dollar closed at 72.70 U.S. cents and in stock trading turnover slid to 639 billion shares worth $4.1 billion.

At close, the ASX 200 Index edged up 1.50 to 5,269.70 and the broader All Ordinaries Index added 0.90 to 5,304.60.

In commodities trading, gold slipped US$5 to US$1,173 an ounce and Brent crude future for immediate month delivery fell 70 cents to US$49.76 a barrel.

IPO

Donfang Modern Agriculture Holding Group Limited surged 25% to $1.25 after the agriculture products maker priced its stock at $1.

The stock opened at $1.06 and closed at $1.25.

Australian Stock Movers

Arrium Ltd surged 14.3% to 12 cents after the struggling iron ore miner and steelmaker reported iron ore production in third-quarter declined 20% to 2.19 million tons and average price per ton declined to US$40 to US$48.

The miner already declared that it will reduce the costs at its Whyalla Steelworks in South Australia for about $100 million in a year.

Cardno Limited increased 7.8% to $3.04 after the infrastructure and environmental services provider said that Crescent Capital agreed to lift its offer price for 30 cents to $3.45 per share.

IOOF Holdings Limited was halted at $8.94 after the smaller rival financial services provider Hub24 Ltd rejected the non-binding proposal of $2.74 per share as the offer was “inadequate and its too low.”

Reckon Limited jumped 10.9% to $2.14 after the software developer retained Macquarie and evaluate its financial and strategic options.

Treasury Wine Estates Ltd soared 16.3% to $7.40 after the wine maker completed $368 million capital raising through a stock offering to acquire Diageo''s U.S. and U.K. operations.