Flat finish: Aus shares close 0.12% lower

Market Reports

by Carolyn Herbert

It has been a lack-lustre end to Monday session for the Australian share market, after a disappointing start to the trading day. However, the local bourse managed to erase some of its earlier losses and finish the day 0.12 per cent lower. The Materials space proved to be the biggest drag on the index this session followed by losses in Telcos. On the other hand, gains in the Energy sector, Utilities and REITS managed to offset some of those losses coming from heavyweight mining stocks BHP (ASX:BHP) and Rio Tinto (ASX:RIO).

At the closing bell the S&P/ASX 200 index closed 7 points down to finish at 5,747.

The value of trades was $4.7 billion on volume of 832 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia (ASX:CBA), BHP Billiton Limited (ASX:BHP) and Westpac Banking Corporation (ASX:WBC).

On the futures market the SPI is 14 points down.

Company news

Mesoblast Limited (ASX:MSB) has announced that it has completed a fully underwritten institutional placement of 26.25 million new shares to raise around US$40 million. The placement price of $2.00 per share represents a 4.8 per cent discount to the 15 day VWAP of $2.10. The proceeds will be used for Mesoblast’s ongoing Phase 3 clinical programs including programs for chronic heart failure. Shares in Mesoblast closed 6.69 per cent down at $2.23.

Suncorp Bank Limited (ASX:SUN) announced it intends to issue Capital Notes to raise $250 million.

OrotonGroup (ASX:ORL) has invested $4.5 million in a fast growing online lifestyle accessory business, as part of a strategic partnership.

Medusa Mining Limited (ASX:MML) has announced a contract miner has died at its underground mine in the Philippines.

Best and worst performers

The best performing sector was Energy adding 0.85 per cent to close at 8,984. The worst performing sector was Materials, losing 1.5 per cent to close at 9,650 points.

The best performing stock in the S&P/ASX 200 was Myer (ASX:MYR), rising 18.31 per cent to close at $1.26. Shares in Evolution Mining (ASX:EVN) and Mayne Pharma (ASX:MYX) also closed higher.

The worst performing stock was Western Areas (ASX:WSA), dropping 4.58 per cent to close at $2.29. Shares in Fortescue Metals (ASX:FMG) and Galaxy Resources (ASX:GXY) also closed lower.

Commodities and the dollar

Gold is trading at $US1,257 an ounce.
Light crude is $0.44 up at $US48.14 a barrel.
The Australian dollar is buying $US0.7631.


Carolyn Herbert

Finance News Network
Carolyn joined FNN in August 2015 as the Head of News and also presented the Market at Midday and the Market Wrap. With more than five years of broadcast journalism experience, Carolyn has worked as a finance anchor on the Sky News Business channel and as an anchor and reporter for ABC News. She is also a qualified corporate lawyer specialising in IPOs, takeovers and mergers and acquisitions.