Telstra tolls on market: Aus shares close 0.10% lower

Market Reports

by Clive Tompkins

The local bourse opened in positive territory following positive offshore leads however was quickly on the back foot after Telstra opened 10 per cent lower following a change to its dividend policy which will see its dividend cut. Its FY17 results were also lower due to one off gains recorded 12 months earlier.

Materials and Healthcare sectors rose and despite better than expected economic news, the market fell.

At the closing bell the S&P/ASX 200 index closed 6 points down or 0.10 per cent lower, to finish at 5,779.

The value of trades was $6.9 billion on volume of 974 million shares at the close of trade. The top three stocks by value were Telstra (ASX:TLS), QBE (ASX:QBE) and Commonwealth Bank (ASX:CBA).

On the futures market the SPI is 13 points lower.

Asian markets 

Japan’s Nikkei has lost 0.1 per cent, Hong Kong’s Hang Seng has lost 0.3 per cent and the Shanghai Composite has gained 0.4 per cent.

Economic news

The ABS reported overall jobs data in July beat expectations, with total employment rising by 26,000 people in July, smashing through the 20,000 expected.

It comes as the monthly full-time trend employment charged ahead for the 10th straight month to July. .

The trend unemployment in Australia remained unchanged at 5.6 per cent in July 2017, also as expected.

Company news

360 Capital Group (ASX:TGP) has reported a 164 per cent rise in its profit attributable to shareholders to $63.6 million for the financial year end 30 June 2017. The fund manager’s revenue from ordinary activities also charged ahead, rising over 76 per cent compared to the 2016 financial year to $113.7 million. Shares in 360 Capital Group (ASX:TGP) closed flat at $0.98.

Telstra (ASX:TLS) has reported its profit after tax attributable to equity holders and Telstra fell 33 per cent to $3.9 billion for the year ended 30 June 2017, compared to the prior corresponding period.

Vocus Group (ASX:VOC) booked a $1.5 billion post-tax impairment for its 2017 financial year results after reviewed its assets and goodwill.

Blackmores (ASX:BKL) has appointed Richard Henfrey as its new CEO, following the resignation of Christine Holgate.

Best and worst performers

The best performing sector was Materials adding 1.25 per cent to close at 10,325. The worst performing sector was Telcos, losing 9.57 per cent to close at 1,373 points.

The best performing stock in the S&P/ASX 200 was Cochlear (ASX:COH), rising 7.17 per cent to close at $153.02. Shares in Orocobre (ASX:ORE) and Breville Group (ASX:BRG) also closed higher.

The worst performing stock in the S&P/ASX 200 was Telstra (ASX:TLS), dropping 10.62 per cent to close at $3.87. Shares in QBE Insurance Group (ASX:QBE) and IRESS (ASX:IRE) also closed lower.

Commodities

Gold is trading at $US1,287 an ounce. Light crude is $0.88 down at $US46.94 barrel. One Australian dollar is buying 79.36 US cents.