Flat start for 2018 FY: Aus shares 0.03% higher at noon

Market Reports

by Jessica Amir

On the first trading day of the 2018 financial year, the Australian share market opened in the black, following Wall Street’s mostly stronger leads.

However, in first two hours of trade the ASX200 selling continued from 30 June 2017, dragging the local bourse into red territory. But gains in the energy space of over 1 per cent, pulled the market higher with the ASX200 now trading flat, or 0.03 per cent higher at noon.

The sectors so far are mixed, with Utilites and Healthcare lagging, while Consumer Staples and Materials are following Energy higher.

The S&P/ASX 200 index is 1.8 points higher at 5,723. On the futures market the SPI is 28 points higher.

Asian markets

Asian markets are mixed, Japan’s Nikkei has added 0.2 per cent, Hong Kong’s Hang Seng has lost 0.11 per cent and the Shanghai Composite has shed 0.11 per cent.

Local economic

CoreLogic reported home prices rose 1.8 per cent in capital cities in June, erasing May’s 1.1 per cent fall

The ABS reported trend dwelling approvals fell 1.9 per cent in May, marking the third monthly drop. In trend terms, dwellings fell by 700 over the past three months. Meanwhile the value of total buildings approved rose 0.8 per cent in May (trend terms), rising for the 5th month.

Company news

Adelaide Brighton Limited (ASX:ABC) has renewed its $330 million bank debt facility, which was due to expire in January 2018. The new bank facility will expire in January 2021. Adelaide Brighton says its new $330 million facility provides it with an extended maturity at attractive lending margins. In total, the cement manufacturer has $540 million in bank debt facilities, spread across three of Australia’s major banks. Shares in Adelaide Brighton Limited (ASX:ABC) are trading 0.89 per cent lower to $5.58.

Hansen Technologies (ASX:HSN) has announced it is acquiring a customer information system and meter data management business in Europe for $96 million. At the same time the software data management company also revealed it will undertake a $50 million capital raising. Hansen Technologies’ purchase of the company, Enoro Holdings, which operates in the Nordic energy market, will expand its European telecommunications footprint into a number of countries. The company’s purchase of Enoro is expected to be completed within the next two weeks and will be effective 1 July 2017. Shares in Hansen Technologies (ASX:HSN) last traded at $4.04.

The best and worst performers

The best performing sector is Energy, gaining 0.79 per cent to 8,781. Shares in Beach Energy Limited (ASX:BPT) have risen 3.91 per cent and trading at $0.60. Shares in Origin Energy Limited (ASX:ORG) and Woodside Petroleum Limited (ASX:WPL) are also stronger.

The worst performing sector is Utilities, falling 1.35 per cent to 8,568. Shares in AGL Energy Limited (ASX:AGL) have fallen 1.96 per cent, trading at $25. Shares in Ausnet Services Limited (ASX:AST) and Spark Infrastructure Group (ASX:SKI) are also lower.


Commodities and the dollar

Gold is trading at $US1,238 an ounce and
One Australian dollar is buying 76.83 US cents.

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.