Australian Stock Market Report – Afternoon June 24, 2014
By Steven Daghlian, CommSec Market Analyst | June 24, 2014 6:24 PM EST
The Australian sharemarket erased around half of Monday's improvements, dragged lower by US weakness. The All Ordinaries Index (XAO) finished 0.3 per cent softer, with the major banks the worst performers. Improvements amongst the industrials and property trusts were short lived today and all sectors ended in the red.
Westfield Retail Trust (WRT) rose by 0.92 per cent and the larger Westfield Group (WDC) slipped 0.37 per cent. Tomorrow the recently voted on restructure of the shopping mall owners becomes a reality on the market. Scentre Group is scheduled to make its market debut under deferred settlement until 3rd July. This means that funds will not exchange hands until the start of July. Scentre will hold its Australian and New Zealand assets. Westfield Corp will be its other business and will hold its better performing foreign assets in the U.S., the UK and Europe. WDC is up 8 per cent this calendar year and WRT is up 11 per cent.
The retailers demanded significant attention today, with most of the big movers found within the sector. South Africa's Woolworths confirmed its $213m, $17/shares takeover bid for Country Road (CTY). Woolworths already owns 87 per cent of the business. One of the conditions of the offer is that its acquisition of upmarket department store owner David Jones (DJS) also goes ahead. CTY surged by 17 per cent, while DJS rose 3.96 per cent. Adventure retailer Kathmandu (KMD) slumped 12.05 per cent following a 10-15 per cent reduction in its annual profit forecasts.
The major banks finished firmly lower this afternoon, wiping out 9.2pts from the All Ordinaries Index (XAO). ANZ Banking Group (ANZ) was one of the biggest movers, slumping by 1.06 per cent. Mining stocks finished mixed, with Australia's largest iron ore miner, Rio Tinto (RIO) slipping by 0.78 per cent, while Fortescue (FMG) lost 0.68 per cent. Gold miners such as Newcrest Mining (NCM) were helped by a stronger gold price.
The Australian dollar remains close to a seven month high against the greenback, currently buying US94.1c. Better than expected signs for China's manufacturing sector helped lift shares and currencies on Monday.
By the close of trade, 1.86 billion shares changed hands worth $4.06 billion. 470 stocks finished higher, 572 lost ground and 434 were unchanged.
Looking ahead, much of the focus will be centred on U.S. data tonight and continued unrest in Iraq. Figures on home prices, home sales and consumer confidence will be most important.
Tomorrow, the Reserve Bank's Deputy Governor Philip Lowe moderates a panel on G20 challenges. The quarterly Resources and Energy report will also garner some attention. This report contains updated forecasts for the mining sector.
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- 2014 MTV Video Music Awards: Full List Of Winners, Miley Cyrus ‘Wrecking Ball’ Bags Video Of The Year [PHOTOS]
- Kate Middleton First Official Solo Trip: Details For Malta Tour Revealed [PHOTOS]
- Manny Pacquiao Vs. Chris Algieri World Tour Kick Off Press Conference In Macau [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
Join the Conversation
- Australian Stock Market Report – Midday August 26, 2014
- Survey Says Many Investors Unaware of True State of Stock Market
- Australian Stock Market Report – Morning August 27, 2014
- Australian Stock Market Report – Morning August 26, 2014
- 3 Keys to Real Estate Selling Success, According to Aussie Superstar Agent
- Apple on iPhone 6 Release Date One Week After September 9 Despite Display Shortage Starting $800
- James Foley Video Had A Change Of Actor – Expert Points Out
- Canada Concerned About Russia’s Military Expansion in Arctic
- Hundreds of Men Rape Teen for Three Years
- Nexus 6 Release Date Will Intro Android 5.0 aka Lemon Meringue Pie with Killer Specs & Features
- Nokia X2 vs. Nokia Lumia 530 - Specifications, Features And Price Showdown
- Why Moto X is Not the Best Smartphone to Purchase Now?