Another Decline in Aussie Dollar, Retailers Lead Gainers in Sydney

Marcus Jacob
20 Nov, 2015
New York City

ASX 200 Index remained flat in lackluster trading amid weak commodity prices and improving results of retail companies. Kathmandu Holdings sales in the first-quarter surged 8.5%. Myer Holdings quarterly same store sales jumped 3.9%.

[R]5:30 PM Sydney, Australia – ASX 200 Index remained flat in lackluster trading amid weak commodity prices and improving results of retail companies. Kathmandu Holdings sales in the first-quarter surged 8.5%. Myer Holdings quarterly same store sales jumped 3.9%.[/R]

Stock markets in Sydney were little changed as losses in energy stocks counterbalanced the strong quarterly reports of retailers.

Liquefied Natural Gas tumbled 11.6% and Santos plunged 4.4%. Woodside Petroleum slumped 1.6%, while Oil Search Limited increased 0.6%.

Kathmandu Holdings sales in the first-quarter surged 8.5% and sales in Myer Holdings jumped 3.4%. Primary Health Care forecasted operating profit for the fiscal 2016 to decline 5% from a year ago period.

The Australian dollar eased to 71.92 U.S. cents, while in stock trading turnover was 831 million shares worth $5.4 billion.

At the close, the ASX 200 Index gained 13.50 or 0.3% to 5,256.10 and the broader All Ordinaries Index rose 12.20 to 5,293.30.

For the week, ASX 200 soared 3.9%.

In commodities trading, gold increased US$8 to US$1,084 an ounce and Brent crude future for immediate month delivery edged up 14 cents to US$44.28 a barrel.

IPO

In its first day of trading, Xenith IP Group Limited opened at $3.30 and closed at $3.24, down 4.7%.

The IP services provider priced its stock at $2.72.

Australian Stock Movers

Leighton Contractors, the construction company of CIMIC Group Limited, signed a contract with Roads and Maritime Services for the design and construction of Sydney’s new motorway in a joint venture with Dragados and Samsung.

The motorway project is expected to generate revenues of approximately $1.5 billion for Leighton Contractors over four years.

CIMIC Group slid 0.2% to $26.12.

Kathmandu Holdings Ltd jumped 4.1% to $1.53 after the outdoor clothing and equipment retailer reported a strong start of its fiscal 2016. Sales for the first-quarter ending in November surged 8.5% from a year ago to $83.32 million or NZ$91.3 million.

Same store sales soared 6.5% in Australia, increased 2.1% in New Zealand, and declined 0.9% in the U.K.

Myer Holdings Ltd soared 4.6% to $1.03 after the department store operator reported sales in the first-quarter ending in September jumped 3.4% from a year ago to $714.8 million.

Same store sales in the quarter increased 3.9% due to the clearance in August.

The company expects operating profit for fiscal 2016 in the range of $64 million to $72 million.

Primary Health Care Limited plunged 7.5% to $3.33 after the diagnostic imaging services provider forecasted operating profit for the fiscal 2016 to decline 5% from a year ago period.

The pathological services provider closed 48 collection centers and expects to close more as revenues weaken.