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Market Update

Australian Indexes at 7-Week Low, Virgin Australia Drops

Author: Marcus Jacob
Last Update: 10:33 AM ET February 05 2014

4:30 PM Sydney Australian indexes dropped to a 7-week low after investors adjusted to shift in central bank policy. Banks led the decline after a federal court ruling deemed at least of several fees charged by the court illegal. Virgin Australia plunged on loss expectations.

Australian stocks declined to a seven-week low as investors digested the latest comments from the Reserve Bank. The central bank appeared to have changed its focus to keeping the rates where they and supporting the current level of dollar.

Australian dollar rose to 88.94 U.S. cents and in stock market trading turnover declined to 791 million shares worth $5.1 billion.

The ASX 200 index slipped 26.80 or 0.5% to 5,070.30 and the broader All Ordinaries fell 25.40 to 5,088.70.

Stocks in Review

Rio Tinto gained 48 cents to $64.59. BHP fell 22 cents to $35.28. Woodside Petroleum Limited slid 9 cents to $36.97.

Westpac decreased 9 cents to $30.31.

Australia and New Zealand Banking Group fell 0.9% to $29.02 after the federal court ruled that credit card late fees charged by the bank are illegal. Approximately 38,000 customers had claimed for $57 million that were improperly charge. However, several other fees charged by the bank were deemed legal.

AGL Energy Ltd slid 0.9% to $14.92 after Marubeni Corporation and ERM Power Limited submitted its final offers of about $1.5 billion for Australian power company Macquarie Generation.

Virgin Australia Holdings plunged 2 cents to 31.5 cents and recovered from as low as 28 cents, a two-year low on a report in The Australian Financial Review suggesting that the carrier may report first-half loss of between $50 million and $80 million.

Worleyparsons Limited declined 3% to $15.38 after the professional service provider secured contract to build a green-field fractionation gas plant in Alberta, Canada and the project is estimated to generate revenue of $68.5 million.

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