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Market Update

Australian Manufacturing Expands at 3-Year High Rate, PPI Rises 1.3%


Author: Marcus Jacob
ticker.com
Last Update: 9:14 AM ET November 01 2013

4:30 PM Sydney Australian market index closed lower as domestic manufacturing activity expanded at a 3-year high rate. Australian wholesale prices rose 1.3% in October largely on import price increase. Two separate surveys in China showed an expansion in manufacturing.

Australian stocks looked at international markets and closed lower.

At the opening, market indexes declined after weak closings in New York and in Europe and better than expected Chinese manufacturing data failed to spark new buying interests.

Australian central bank is expected to leave its reference rate unchanged this Tuesday and investors are facing a barrage of economic news next week.

The National Bureau of Statistics reported China\''s purchasing managers\'' index rose 0.3 points to 51.4 points in September.

A private survey index, the HSBC China Manufacturing Purchasing managers\'' index came in at 50.9 in October jumped 50.2 from the month before.

Australian manufacturing activity expanded to a 3-year high in last month.

In October, the Australian industry group\''s performance of manufacturing index increased 1.5 points, manufacturing activity expanded to a three-year high in September.

The Australian Bureau of Statistics reported Producer Price Index jumped 1.3% from the three month period as domestic prices rose 0.8% and import prices climbed 5.9%.

Australian dollar slipped to 94.80 U.S. cents. In stock trading, turnover declined to 571 million shares worth $3.3 billion.

The ASX 200 index slipped 14.40 or 0.3% to close at 5,411.10 and the broader All Ordinaries dropped 13.80 to 5,406.50.

For the week, ASX 200 rose 0.5%, for the October month the index climbed 3.9% and for the quarter surged 6.9%.

Stocks in Review

Rio Tinto fell 45 cents to $63.54.

BHP fell 13 cents to $37.53 after the diversified natural resources company signed an agreement to sell its coal mine in New Mexico to Navajo Nation for about $85 million.

Woodside Petroleum Limited rose 3 cents to $38.85.

Westpac jumped 30 cents to $34.90.

Downer EDI Limited fell 0.2% to $4.92 after the engineering construction company secured contract worth $400 million with Bechtel for two electrical and instrumentation packages for the downstream portion of the Chevron-operated Wheatstone Project in Western Australia and will commence onsite in late 2014.

David Jones Limited surged 6.6% to $2.90 after the department store operator said total sales in fiscal first-quarter rose 2.1% to $ 424.2 million from $415.6 million a year ago. Comparable sales in the quarter slid 0.3%

The retailer entered into a strategic partnership with German brand, HUGO Boss. David Jones will be the only Australian chain carrying HUGO Boss latest collection from February 2014.

Macquarie Group Ltd climbed 4.2% to $53.10 after the investment bank reported net profit in the first-half ending in September surged 39% to $501 million and earnings per share surged 42% to $1.50.

The company added net operating income in the period soared 20% to $3.68 billion.

Retail deposits jumped 7% to $33.1 billion from March 2013.

The bank plans to spin-off its stake in Sydney Airport to its shareholders after it reported earnings climbed 39% in the first-half of the fiscal year.

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