5:30 PM Sydney, Australia – Australian political uncertainty reached a new high after Malcom Turnbull forced out Prime Minister Tony Abbott in a leadership challenge. Australia has struggled to implement policies for nearly eight years with the revolving-door-government.
Australian market indexes plunged following weak market conditions in Shanghai and in Asia.
Investors also turned cautious after Australia elected its fourth prime minister in two years. No prime minister has been able to govern the full term since 2007.
Malcom Turnbull was sworn in as Australia’s 29th prime minister and his three immediate predecessors were forced out after party members revolted.
Australian dollar closed at 71.11 U.S. cents and in stock trading turnover rose to 835 million shares worth $5 billion.
At close, the ASX 200 Index slumped 78.10 or 1.5% to 5,018.40 and the broader All Ordinaries Index dropped 73.90 to 5,046.60.
In commodities trading, gold edged up US$1 to US$1,109 an ounce and Brent crude future for immediate month delivery gained 41 cents to US$47.41 a barrel.
Ellerston Asian Investment Limited
closed at 99 cents after the investment company priced its stock at $1.
The stock opened at $1 and closed at 99 cents.
Australian Stock Movers
slipped 1.9% to $8.87 after the wealth management services provider agreed to acquire two U.K.-based market data vendor and retail trading provider Proquote Limited and Pulse Software Systems Limited for about £37.61 million in cash.
Both transactions are expected to close in the fourth-quarter of this year.
Kathmandu Holdings Ltd
soared 3.8% to $1.36 after the New Zealand-based outdoor clothing and equipment retailer again requested its shareholders to reject a takeover offer from Briscoe Group after the company refused to raise the offer price or extend the offer date beyond September 17.
Village Roadshow Ltd
declined 3.6% to $6.71 after the entertainment company completed US$480 million recapitalization, including new capital of US$325 million from a consortium of investors.