5:00 PM Sydney – Australian market indexes extended losses in the week to 1% and the dollar dropped to the low of the year. Resource sector stocks led the decliners. BHP said it sold 15% stake in its iron ore mines in Western Australia to two Japanese conglomerates.
Australian stocks closed down today and for the week as resource prices in international markets remained weak.
After a week of volatile trading when world markets erased more than 4% after the U.S. Federal Reserve chairman laid out a probable timetable to unwind monetary stimulus of $85 billion a month.
The central bank has provided nearly $2 trillion in monetary support to the financial system largely by printing money.
Economists fear that inflation, thought subdued for now, may shoot out of control if the stimulus is not tapered after five years of sustained government bond buying by the Fed.
The ASX 200 index slipped 19.60 or 0.4% to close at 4,738.80 and the broader All Ordinaries fell 20.01 to 4,723.80. For the week, the ASX 200 slipped 1.1%.
Australian dollar closed at 92.47 U.S. cents and in stock trading turnover jumped to 1.2 billion shares worth $5.9 billion.
Stocks in Review
BHP gained 33 cent to $32.45 and after the mining company sold 15% stake in West Australian iron ore mine to two Japanese conglomerates Itochu and Mitsui invested for $1.5 billion.
Rio Tinto increased 6 cents to $52.66 and the company said it halted its first shipment of copper and gold from Oyu Tolgio mine after the government demand for a delay.
Woodside Petroleum Limited increased 37 cents to $35.50.
David Jones Limited rose 4 cents to $2.45 and Breville Group added 3 cents to $7.33. Woolworths slid 1 cent to $31.99.
Mirvac Group lowered 2 cents to $1.58. Lend Lease up 2 cents to $8.40.
Westpac dropped 44 cents to $27.72, Commonwealth down 0.3% to $66.06 and National Australia Bank slipped 0.8% to $28.98 and ANZ fell 0.9% to $27.41.
Australian Renewable Fuels Limited surged 33.3% after it began exporting and shipped its first shipment of 5.7 million liters bio-diesel to the U.S and the next shipment of 5 million liters is scheduled in August.
Arafura Resources Limited plunged 8.9% to 0.08 cents after the rare earths explorer terminated a land purchase deal in South Australia.
Seven Group Holdings Limited climbed 4% to $7.21 after the equipment rental and U.S. based Carlyle Group refused the sale of Coates Hire. The Seven Group and Carlyle each have stake of 46% in Coates Hire.