Iron Ore & Financials drag: Aus shares close 0.78% lower

Market Reports

by Clive Tompkins

It has been a weak start to the trading for the Australian share market, with selling in the financials, utilities and materials lead by a fall in the Iron Ore price.

The local bourse fell at the open, reversing a gain tipped by the futures index. The ASX 200 managed to claw back some losses by midday and however selling resumed in the afternoon session before closing 0.78 per cent lower.

Financials were the biggest weight on the markets with Industrials and Health Care going the other way.

At the close the S&P/ASX 200 index was 45 points lower to at 5,707.

The value of trades was $4.9 billion on volume of 646 million shares at the close of trade. The top three stocks by value were Westpac Banking Corporation (ASX:WBC) Commonwealth Bank of Australia (ASX:CBA), and ANZ Banking Group Limited (ASX:ANZ).

On the futures market the SPI is 37points lower.

Asian markets

Taking a look at how Asian markets are tracking in afternoon trade. The Nikkei is 0.02 per cent lower, Hong Kong’s Hang Seng 0.17 higher and the Shanghai Composite is closed.

Company news

Godfrey’s Group Limited (ASX:GFY) says in light of the challenging trading conditions in the second half of 2017, it is downgrading its forecast EBITDA. Australia’s biggest Vaccum cleaning retailer now expects its EBITDA will be around the lower end of its underlying guidance of $14 million to $15 million. Godfrey’s also announced it has secured a new long term $30 million senior debt facility, to fund its ongoing working capital.
Shares in Godfreys Group Limited (ASX:GFY) closed 8.8 per cent higher at 68c.

Oil Search Limited (ASX:OSH) has entered into a purchase agreement with ExxonMobil to buy a 30% interest in five of its licenses in the Eastern Foldbelt of Papuan Gulf Basin.

Charter Hall Retail REIT (ASX:CQR) has inked a deal to buy the Salamander Bay Centre, NE of Newcastle for $174.5 million. The centre has Coles, Woolworths, Kmart, Aldi and Target Country, as tenants including a range of other retailers and specialty stores.

And finally, Afterpay Holdings Limited (ASX:AFY) has entered an exclusive deal with New Zealand’s number one, ecommerce site, Trade Me Group Limited (ASX:TME) to become its exclusive ‘buy now, pay later’ finance provider.

Best and worst performers

The best performing sector was Industrials adding 0.68 per cent higher to close at 5,806. The worst performing sector was Financials Excluding REITs, losing 1.41 per cent to close at 7,009 points.

The best performing stock in the S&P/ASX 200 was ALS Limited (ASX:ALQ), rising 4.24 per cent to close at $6.88. Shares in Estia Health (ASX:EHE) and Sydney Airport (ASX:SYD) were higher.

The worst performing stock was Aconex Limited (ASX:ACX), dropping 5.8 per cent lower to close at $4.22. Shares in Bega Cheese (ASX:BGA) and Domino Pizza Enterprises (ASX:DMP) also closed lower.

Commodities
Gold is trading at $US1,267 an ounce.
Light crude is $0.90 higher at $US49.80 a barrel.
The Australian dollar is buying $US0.7435.


 

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