Australian Stocks Extend Losses, Consumer Confidence Falls

Marcus Jacob
09 Dec, 2015
New York City

Australian markets extended losses as overall commodity prices test new seven-year lows. Consumer confidence index fell 0.8% in December and the total number of home loans in October dropped 0.5%.

[R]5:30 PM Sydney, Australia – Australian markets extended losses as overall commodity prices test new seven-year lows. Consumer confidence index fell 0.8% in December and the total number of home loans in October dropped 0.5%.[/R]

The Australian market ended lower on the deepening gloom in the commodities market and falling government revenues and weakening growth profile for the domestic economy.

The overnight losses in Europe and the U.S. also weighed on the market sentiment after crude oil price dropped neared $37 a barrel in New York, a new seven-year low.

Consumer confidence declined in December, according to the latest survey from Westpac Bank. The index fell 0.8% to 100.8, still above the 100 benchmark for positivism.

The seasonally adjusted total number of home loans in October dropped 0.5% to 55,571, compared to an increase of 2% in previous month, the Australian Bureau of Statistics said.

The value of home loans in October gained 0.4% to $21.15 billion, following a 3% advance a month earlier. The value of the loans declined 2% to $32.643 billion.

The Australian dollar fell to 72.18 U.S. cents and trading turnover slid to 920 million shares worth $5.2 billion.

At the market close, the ASX 200 Index slipped 28.10 or 0.6% to 5,080.50, while the broader All Ordinaries Index decreased 28.10 to 5,129.90.

In commodities trading, gold added US$4 to US$1,077 an ounce and Brent crude future for immediate month delivery gained 50 cents to US$40.76 a barrel.

Australian Stock Movers

Cimic Group Ltd slumped 2.1% to $23.80 after the engineering and construction company lifted its offer to acquire remaining stake in the residential property developer Devine.

Cimic already owns 50.63% of Devine and previously offered 75 cents per share for the remaining 49.37%. Today, the offer was revised to cash 81 cents per share.

Mirvac Group rose 0.3% to $1.92 after the real estate developer, as co-owner of 275 Kent Street in Sydney, secured a twelve-year lease contract with Westpac Banking as majority tenant of the tower until 2030.

Starpharma Holdings Limited plunged 9.6% to 70.5 cents after the pharmaceutical products maker competed the placement of new shares at a price of 73 cents per share and raised $32 million.

SmartTrans Holdings Limited jumped 9.1% to $0.06 after the logistics and mobile software provider commenced a new billing partnership with China-based Chengdu Qinyu Technolog, the online content and application developer.

Through the partnership, SmartTrans will gain exposure to the commuter transport sector in China.

Transurban Group dropped 0.9% to $10.11 after the toll road operator said it will participate together with Swedish partner Skanska AB and bid for a highway project related to Interstate 66 in Northern Virginia.

The Virginia Department of Transportation will collecting proposals from the contractors by August 2016 and the winner will be selected in the fourth quarter of next year.