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Market Update

GM Pulls Plug on Holden in Australia, Stocks in 5-Day Losses


Author: Marcus Jacob
ticker.com
Last Update: 9:30 AM ET December 11 2013

4:30 PM Sydney – Australian stocks declined for the fifth day in a row and gold miners gained on the back of a rebound in precious metal prices. General Motors plans to exit manufacturing from Australia and Toyota is likely to exit from Australian manufacturing as well.

Australian stocks declined for the fifth day in a row and gold miners closed higher on the back of higher gold prices.

Australian dollar gained to 91.34 U.S. cents. Stock trading turnover declined to 727 million shares worth $4 billion.

The ASX 200 index dropped 39.40 or 0.8% to close at 5,104.20 and the broader All Ordinaries slipped 36.70 to 5,109.50.

Stocks in Review

Rio Tinto fell 40 cents to $65.77.

BHP dropped 64 cents to $36.18 and oil and gas producer plans to invest about $5.5 billion annually to increase its U.S. onshore oil and gas production to 500,000 barrels of oil equivalent per day by fiscal 2017.

Woodside Petroleum Limited slid 6 cents to $37.51.

Westpac decreased 31 cents to $30.88.

Dexus Property Group closed unchanged at $1.01 and the Canada Pension Plan Investment Board and the company raised their bid for GPT Group for Commonwealth Property Office Fund to $3 billion.

In a regulatory filing, Dexus and the Canadian fund said they raised their cash-and-stock offer to $1.268 a share for the fund managed by Commonwealth Bank of Australia. On November 19, GPT Group offered $1.235 per share.

Qantas Airways Limited jumped 2.6% to 99 cents and the subsidiary Jetstar will continue at Avalon Airport for next 18 months after a deal negotiated by the Victorian government.

After the media reports, government will invest about $5.5 million and Jetstar and Linfox each will contribute $2.75 million. Aviation Industry Minister Gordon Rich-Phillips said the deal secures five flights a day by Jetstar.

Qantas Airways and US Airways will join oneworld® alliance from March, following their exit from the Star Alliance. Today two air lines frequent flyer program completed merger with alliance member of American Airlines.

Toyota Motor Corp, the automaker plans to close its production in Australia following announcement from General Motors that it would exit from vehicle and engine manufacturing in the Australia by the end of 2017, an Australian labor union official said today.

Toyota said in a statement it will work with the government and the suppliers on scope of its next steps, whether to continue the operation after General Motors leaves.

WDS Limited climbed 6.2% to 85 cents after the mining services provider won contract worth $142.8 million for work on Aquila Resources and Vale’s Eagle Downs hard coking coal mines in the Bowen Basin of Queensland.

Yancoal Australia Limited surged 9.9% to 72 cents after the Australian Treasurer Joe Hockey said Yanzhou Coal Mining Co does not have to meet December-end deadline to reduce the stake in the coal miner.

Treasurer also relaxed investment conditions that restricted Chinese state controlled company activities.

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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