Australian Trade Deficit Narrows, Aussie Dollar Gains

Marcus Jacob
04 Nov, 2015
New York City

Australian market indexes closed nearly changed in a quiet trading after trade deficit in September narrowed. Exports rose 3% and imports increased 2% in the month. Aussie dollar closed higher and traded above 72 U.S. cents.

[R]5:30 PM Sydney, Australia – Australian market indexes closed nearly changed in a quiet trading after trade deficit in September narrowed. Exports rose 3% and imports increased 2% in the month. Aussie dollar closed higher and traded above 72 U.S. cents.[/R]

Australian market indexes closed nearly unchanged after index rose at the open and lost momentum in the afternoon trading.

Resource stocks were in focus after positive comments from Chinese premier on the economic growth outlook.

The trade deficit in September narrowed to $2.317 billion compared to $2.711 billion deficit in August, the Australian Bureau of Statistics reported.

Exports in the month jumped 3% to $27.43 billion while imports increased 2% to $29.48 billion.

Separately, the department said the seasonally adjusted total value of retail sales in September increased 0.4% to $24.50 billion and unchanged from the previous month.

Retail sales in the third-quarter rose 0.6% to $71.67 billion but decrease from 0.8% in the second-quarter.

Australian dollar ease to 72.07 U.S. cents and in stock trading turnover gained to 793 million shares worth $5.4 billion.

At close, the ASX 200 Index edged up 3.10 to 5,242.30 and the broader All Ordinaries Index added 3.60 to 5,294.80.

In commodities trading, gold declined US$16 to US$1,122 an ounce and Brent crude future for immediate month delivery slid 23 cents to US$50.31 a barrel.

Australian Stock Movers

CSR Limited soared 4.1% to $3.03 after the building products maker reported revenues in the year ending in September surged 14% from a year ago to $1.14 billion.

Net profit in the year jumped 13.4% to $77.6 million compared to $68.4 million and diluted earnings per share rose to 15.4 cents from 13.6 cents in the same period a year ago.

CSR forecasted net profit for the fiscal 2016 between $128 million and $162 million, an increase of 25% from fiscal 2015.

Downer EDI Limited gained 0.8% to $3.65 after the engineering construction group forecasted net profit in the fiscal 2016 of about $190 million and the company signed a 10 year, $1 billion locomotive maintenance contract with Pacific National.

Echo Entertainment Group Ltd plunged 6.3% to $4.80 after the casino, night club, restaurants and bars operator said revenues in the year ending in September jumped 19% from a year ago to $2.26 billion.

Net profit in the year surged 59% to $169 million compared to $106 million and diluted earnings per share increased to 20.5 cents from 12.9 cents in the same period a year ago.

Stockland Corporation Ltd fell 0.5% to $4.01 after the property developer confirmed that it will redevelop and expand Green Hills Shopping Centre in the New South Wales at a cost of $377 million.

The company said the expansion work is scheduled to start in January 2016.