5:00 PM Sydney, Australia – Australian markets extended losses for the sixth session. Indexes on Friday declined 1.3% and in the six-day period lost 3.6% on rising geopolitical worries. Reserve Bank of Australia lowered its GDP growth and inflation estimate.
Australian markets dropped 1.3% in Friday’s trading after geopolitical worries overshadowed domestic earnings and Reserve Bank lowered its outlook of economic growth and inflation.
Markets in Australia and Asia declined after the U.S. President Barack Obama ordered air strikes in Iraq on “humanitarian” grounds and prevent rebels from gaining more territory.
Market indexes in Australia declined for six days in a row and Friday’s drop extended the loss in the period to 3.6%. The current decline matched the largest slide in eight months ago but iron ore prices gained for five sessions in a row.
However, iron ore futures prices in Shanghai trading suggested that week’s gain in iron prices are likely to be wiped off on Monday’s trading.
The Reserve Bank of Australia lowered gross domestic product growth in fiscal 2015 between 2% and 3% and core inflation in the year to the end of June 2015 in the range of 1.75% to 2.75%.
The Australian Bureau of Statistics reported home loans approved in June rose 0.2% to 52,153 and total housing finance by value jumped 1% to $27.7 billion.
Australian dollar closed at 92.54 U.S. cents and stock trading turnover jumped to 849 million shares worth $5.5 billion.
ASX 200 index dropped 73.70 or 1.3% to 5,435.30 and the broader All Ordinaries slumped 71.10 or 1.3% to 5,429.60.
Stocks in Review
Crown Resorts Ltd
dropped 2.8% to $14.75 after the subsidiary Melco Crown reported annual revenues declined 7% to US$1.2 billion from a year ago.
Net income in the year declined to US$143.6 million compared to US$181 million and earnings per share slumped to 26 cents from 33 cents a year ago period.
The company added net revenue for the quarter at City of Dreams was largely unchanged at US$967.5 million, compared to US$967m in the second quarter of 2013.
declined 2.6% to $17.90 after the diversified media and information services provider said revenue in the year ending in June declined 3.6% to $8.57 billion from $8.89 billion a year ago period.
Net income in the year tumbled 53.2% to $237 million compared to $506 million and diluted earnings per share dropped to 41 cents from 87 cents in the prior year.
REA Group Limited
plunged 8.6% to $42.78 after the online real estate listing company reported revenue in the year ending in June soared 30% to $437.5 million from $336.5 million a year ago period.
Profit in the year surged 36.6% to $149.9 million compared to $109.7 million and diluted earnings per share jumped to $1.14 from 83.3 cents a year earlier.