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Market Update

Australian Indexes Drop 1.9%, Dollar Eases

Author: Marcus Jacob
Last Update: 9:48 AM ET July 01 2013

5:30 PM Sydney – Australian indexes dropped 2% in light volume and the dollar eased near the low for the year after manufacturing expanded at the slowest pace in four months in China. Australian home prices rose 3.8% in the fiscal year ending in June reversing 3.6% decline in the previous year.

Australian stocks and dollar plunged on the first day of fiscal year after the latest manufacturing survey in China showed the slowest growth rate in four months in June.

The ASX 200 index declined 92.30 or 1.9% to close at 4,710.30 and the broader All Ordinaries dropped 85.70 to 4,689.70.

Australian dollar closed at 91.96 U.S. cents and in stock trading turnover dropped to 647 million shares worth $4 billion.

Purchasing Managers’ Index, tracking manufacturing activities in China decreased 0.7 to 50.1, National Bureau of Statistics and China Federation of Logistics & Purchasing said in its latest survey for June.

The read above 50 indicates expansion.

Separately, the Australian Industry Group’s manufacturing index showed an increase of 5.8 to 49.6, barely touching the 50-level indicating expansion.

Home prices in capital cities across Australia increased 3.8% in the fiscal year ending in June 2013 after falling 3.6% in fiscal 2012, RP Data-Rismark index showed.

Stocks in Review

Rio Tinto slumped 64 cents to $51.73 and BHP dropped 43 cents to $30.94. Woodside Petroleum Limited slipped 26 cents to $34.75.

David Jones Limited slid 7 cents to $2.48 and Breville Group fell 6 cents to $7. Woolworths declined 61 cents to $32.20.

Mirvac Group lowered 4 cent to $1.57. Lend Lease down 20 cents to $8.15.

Westpac plummeted 91 cents to $27.97, Commonwealth decreased 2.4% to $67.53 and National Australia Bank fell 2.4% to $28.97 and ANZ declined 76 cents to $27.82.

Amcor Limited fell 0.3% to $10.11 after the packaging company agreed to acquire the flexible packaging operations of Jiangsu Shenda Group for $62.20 million.

Separately, the company also reached agreement to sell its property in Fairfield worth $120 million.

Boart Longyear Limited plummeted 7.4% to 62.5 cents after the mining services provider lowered its full-year earnings guidance on weak demand and difficult market conditions.

Origin Energy Limited slumped 3.1% to $12.18 after the energy company agreed to acquire power generator from the New South Wales state government for $659 million.

PrimeAg Australia Limited gained 1.2% to 84.5 cents after the rural properties investor plan to sell its remaining stake to Australian Food & Fibre valued at $76 million or 29 cents per share.

Tabcorp Holdings Limited slipped 1.9% to $2.99 after the casino operator agreed to buy Donaco International Limited, the TV wagering service provider for $863,000.

Wesfarmers Limited dropped 2.6% to $38.59 and its retail subsidiary Coles paid $61,200 in infringement notice for misleading country’s origin of fresh fruit advertised for three months to May.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc