5:00 PM Sydney – Australian market indexes tested the 2013 lows and the Australian dollar traded weak. On the domestic front, employers added 1,100 jobs in May, sharply higher than 10,000 job cuts expected by many economists.
Caution in Sydney trading prevailed for the third week in a row and market indexes tested lows for 2013.
Investors overlooked better than expected domestic jobs report and focused on the weakening backdrop for commodities prices.
World investors are focused on the possible early withdrawal of the monetary stimulus in the U.S. that could have ripple effect on the Chinese economic growth and the demand for commodities.
The ASX 200 index dropped 28.70 to close at 4,695.80 and the broader All Ordinaries slumped 31.20 to 4,684.90.
Australian dollar closed at 94.77 U.S. cents and in stock trading turnover climbed to 940 million worth $5.2 billion.
The Australian Bureau of Statistics said employers added 1,100 jobs in May and unemployment rate remained at 5.5% in the month of May. Economists had anticipated a decline of 10,000.
Stocks in Review
Rio Tinto slipped $1.26 to $51.57 and BHP dropped 85 cent to $32.12. Woodside Petroleum Limited fell 18 cents to $34.49.
David Jones Limited slid 4 cents to $2.34 and Breville Group gained 3 cents to $7.21.
Woolworths declined 35 cents to $31.58.
Mirvac Group lowered 2 cents to $1.56. Lend Lease rose 2 cents to $9.05.
Westpac climbed 71 cents to $28.18, Commonwealth jumped 1% to $65.77 and National Australia Bank gained 1.1% to $28.37 and ANZ increased 1.7% to $27.01.
Avanco Resources Limited surged 22.2% to 0.7 cents after the mineral explorer secured $58 million debt facility from Banco Votorantim to develop its Antas North copper mine in Brazil.
Clough Limited closed unchanged at $1.10 and engineering and construction contractor lifted underlying profit expects for the year to $90 million on revenue of $1.5 billion and for fiscal 2014 revenues at $1.35 billion.
Rio Tinto slipped 2.4% to $51.57 agreed to sell its Eagle project to Lundin Mining Corporation for $325 million in cash. The transaction is expected to close in the third quarter of this year.
Suncorp Group Limited slipped 21 cents to $11.65 after the insurance and lender sold a non-performing loan portfolio to Goldman Sachs for 60% of the book value or for approx $960 million.
The U.S. investment bank is buying a $1.6 billion book of Suncorp loans.