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Market Update

Australian Rates on Hold, Telstra to List Autohome in New York

Author: Marcus Jacob
Last Update: 9:35 AM ET November 05 2013

4:30 PM Sydney – Australian market indexes retained early advance in the day after Reserve Bank left its reference rate on hold at 2.5%. The dollar slid after RBA Governor Stevens comments the dollar was uncomfortably high.

Australian markets indexes gained 0.8% in thin trading and Reserve Bank left its key lending rate unchanged.

The widely expected central bank’s move was quickly discounted by traders and shifted focus to domestic earnings.

The Reserve Bank of Australia kept its official cash rate on hold at record low of 2.5% and Governor Glenn Stevens commented that the recent increase in dollar are dragging the productivity improvement in the economy.

Stevens said in his prepared remarks that the Australian dollar is “uncomfortably high” and is dragging the productivity gains in the economy and hurting manufacturers.

Australian dollar fell to 94.75 U.S. cents. In stock trading, turnover plunged to 519 million shares worth $2.8 billion.

The ASX 200 index increased 41.50 or 0.8% to close at 5,432 and the broader All Ordinaries gained 41.50 to 5,425.70.

Stocks in Review

Rio Tinto jumped 98 cents to $64.70 and BHP gained 33 cents to $37.85. Woodside Petroleum Limited climbed 55 cents to $39.35.

Westpac increased 19 cents to $34.35.

Chorus Limited plunged 7.8% to $2.12 after the telecom provider will apply new pricing of $10.92 from next month, a 50% reduction from the current $21.46 monthly charge. The company estimated that annualized EBITDA will impact nearly $142 million.

Linc Energy Limited rose 0.4% to $1.36 after the oil and gas explorer plans to shut down its underground coal gasification research and development facility in south-west Queensland and move overseas, at a cost of several million dollars

ERM Power Limited climbed 4.6 to $2.93 after the electricity supplier was short listed of possible buyers for two NSW power stations valued at $2.1 billion.

Telstra Corporation Limited closed unchanged at $5.14 after the telecommunications network services provider planned to list Chinese online-car-sales website Autohome on the New York Stock Exchange.

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