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Market Update

Australian Indexes Surge, Manufacturing Extends Decline to 26th Month

Author: Marcus Jacob
Last Update: 10:04 AM ET September 02 2013

4:30 PM Sydney Australian indexes gained 1% and building approvals jumped nearly 11% in July. However, manufacturing activity in August dropped for the 26th month in a row. Rio Tinto shipped iron ore form the newly expanded port.

Australian indexes surged after building approvals soared nearly 11% in July but the index of manufacturing activities in August declined for the 26th month in a row.

Australian dollar edged higher to 89.87 U.S. cents and in stock trading turnover declined to 758 million shares worth $4.09 billion.

The ASX 200 index climbed 53.30 or 1% to close at 5,188.30 and the broader All Ordinaries gained 52.70 to 5,178.

The Australian Industry Group reported manufacturing activity in August dropped to 46.4, declined for the 26th consecutive month, but gain 4.4 points from July.

The Australian Bureau of Statistics said building approvals in July jumped 10.8% to 14,304 from 12,778 approvals in June. Compared to year ago month, building approvals soared 28.3%.

Stocks in Review

Rio Tinto climbed 92 cents to $59.22 and shipped first iron ore consignments from its newly expanded port, rail and mine operations in Australia. Rio has estimated iron ore operation capacity to expand to 290 million tons a year.

The miner added additional infrastructure for the port, rail and power is expected to increase iron ore capacity to 360 million tons a year.

BHP slipped 13 cents to $35.62. Woodside Petroleum Limited jumped 36 cents to $38.54.

Westpac advanced 43 cents to $31.82.

Billabong International Limited surged 14.1% to 48.5 cents after the surfware retailer received a request from its fourth-largest shareholder Coastal Capital International on various resolutions seeking imposition of a new organization.

The company said it is reviewing the notice and considering a competing proposal from consortium of the Centerbridge and Oaktree.

DUET Group closed unchanged at $2.08 after the subsidiary of the energy utility provider DBP Development Group and Chevron Australia plans to build and operate gas pipeline for the Chevron operated Wheatstone Project.

Forge Group Limited climbed 8.3% to $5.72 after the engineering company secured $1.47 billion construction contract at Roy Hill iron ore mine project in Western Australia.

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