5:30 PM Sydney – Market indexes in Australia dropped more than 1% after the U.S. Federal Reserve statement suggested rates are likely to rise later in the year. Banks led the decliners. Ten Network dropped 12%. Woolworths declined for the second day in a row.
Market indexes in Australia declined more than 1% after the U.S. Fed said rates will rise later in the year but in a gradual fashion.
Traders focused on the fact that the rates will begin rising and ignored the gradual pace comments and sold off banks and other interest rate sensitive stocks.
Australian dollar closed at 77.24 U.S. cents and in stock trading turnover climbed to 910 billion shares worth $6.2 billion.
At close, the ASX 200 Index jumped 59.60 or 1.1% to 5,595.40 and the broader All Ordinaries Index gained 55.10 to 5,590.30.
In commodities trading, gold slid US$5 to US$1,180 an ounce and Brent crude slid 0.17 cents to close at US$63.70 a barrel.
Australian Stock Movers
Erin Resources Ltd
surged 21.1% to 0.023 cents after the exploration company said MGC Pharmaceuticals Pty Limited secured first wholesale cannabinoids offtake multi-year contract from U.K.-focused medical and cosmetic cannabis company for about $60 million or €40 million.
declined 3.1% to 79 cents despite the information technology secured two managed services contracts for 5-years in two days worth about $10 million and $15 million from InterOil Corporation Limited.
closed unchanged at 10.5 cents after the infrastructure technology developer lowered its revenue forecast for the year between $15 million to $16 million from earlier estimated range between $18 million to $20 million.
The technology company estimated that it secure purchase orders worth about $5 million to $6 million by the end of June.
fell 0.7% to $26.60 after the super markets operator lowered its net profit guidance for the year between $2.15 billion and $2.45 billion on lower sales and profits in Australian Food & Liquor businesses.
The company said there were significant declines in same-store sales results in the past few months.