Following on from yesterday’s losses and a weaker lead from Wall Street, the Australian share market fell into the red at the open. Despite struggling for direction up until around 11am, we saw a bounce back with a spurt of buying raising the index to practically flat or 0.06 per cent higher. While it is a sea of red across most sectors, REITs and Consumer Staples are proving to be the biggest drag on the market. Energy and Telcos are bucking the trend, with the likes of Vocus Group
(ASX:VOC) up more than 20 per cent following a pleasantly surprising takeover offer.
The S&P/ASX 200 index is 4 points up at 5,671. On the futures market the SPI is 2 points higher.
Asian marketsChecking in with how Asian markets are tracking now, Japan’s Nikkei has lost 0.2 per cent, Hong Kong’s Hang Seng is flat and the Shanghai Composite has gained 0.4 per cent.
Economic newsLatest figures from the Australian Bureau of Statistics shows the Australian economy slowed in the March quarter to 0.3 per cent, seasonally adjusted. However through the year, GDP grew 1.7 per cent. The strongest growth was observed in service industries including Finance and Insurance Services, Wholesale Trade, and Health Care.
Company newsCleanaway Waste Management Limited
(ASX:CWY) has been awarded a resource recovery contract by the Brisbane City Council. Under the agreement, the waste removal company will provide operations and management of 4 resource recovery centres, as well as the haulage of waste from these facilities. The agreement is expected to generate revenue of $330 million over the initial ten year period. Shares in Cleanaway are trading up 2.77 per cent at $1.39.
Rural Funds Group Limited
(ASX:RFF) will undertake a $78.6 million capital raising. The funds from the Entitlement Offer will be used to initially reduce gearing from 42.7 per cent to 29.5 per cent. The agricultural REIT has acquired $60.5 million worth of strategic assets since December 2016. Shares in Rural Funds are trading flat at $1.77.
Best and worst performersThe best performing sector is Energy, gaining 0.65 per cent to 9,205. Shares in Whitehaven Coal
(ASX:WHC) have risen 5.62 per cent and trading at $2.73. Shares in Oil Search
(ASX:OSH) and Origin Energy
(ASX:ORG) are also stronger.
The worst performing sector is Consumer Staples, falling 1.2 per cent to 9,123. Shares in Blackmores
(ASX:BKL) have fallen 2.97 per cent, trading at $89.62. Shares in Wesfarmers
(ASX:WES) and Bellamy’s
(ASX:BAL) are also lower.
Gold and the dollarGold is trading at $US1,293 an ounce and the Australian dollar is buying $US0.7539.
