5:00 PM Sydney, Australia – Australian stocks extended five-week long losses and the Aussie dollar dropped to a four-year low. BHP Billiton said it plans to cut iron ore mining costs at Western Australia division by 25% and increase capacity by 65 million tons a year.
Australian stocks took another dip and extended five-week long decline after the dollar dropped to a four-year low and iron ore prices hovered at five-year lows.
Resource sector stocks led the decline for the third week as the prospect of recovery in iron prices look bleak and international traders stepped up unwinding of the yield trade and sell Aussie dollar.
The Aussie dollar is expected to trade as low as 80 U.S. cents in the next six months and the iron ore prices may fall as low as $65 a ton.
Australian dollar traded at 86.95 U.S. cents and in stock trading turnover declined to 390 million shares worth $2.08 billion.
ASX 200 index slid 25.30 or 0.5% to 5,292.90 and the broader All Ordinaries index fell 22.80 to 5,292.60.
Stocks in Review
BHP Billiton Limited
declined 2.2% to $32.70 after the diversified natural resources company said it plans to reduce unit costs of iron ore mining at its Western Australia mines by 25% and increase capacity by 65 million tons per year.
Sunland Group Limited
closed unchanged at $1.74 after the property developer agreed to acquire 41.9 hectare residential site on the Gold Coast for $61 million.
) closed unchanged at $7.79 after the toll road operator signed an agreement with Victoria government to widen the CityLink Tulla in Melbourne for $850 million.
gained 0.2% to $5.40 after the communications and information service provider completed its share buyback program for $1 billion.