Lower and further away from 10-yr high: Aus shares close 0.2% lower

Market Reports

by Jessica Amir

The Australian share market closed with a loss of 11 points or 0.2 per cent, with the main index, the top 200 stocks plateauing from 6 September 2019. But importantly remembering we did hit a new 10 year high in late August.

We had negative leads from the outset with US equity markets closing in the red, despite the US Fed Reserve rising its benchmark interest rate a quarter point as expected, on the back of the US economy strengthening.

Tech stocks rose the most today, but among the major sectors, Telcos rose the most, 0.4 per cent after the sector has been a rise from July, broadly speaking.

Utilities losing the most, after the major players Spark (ASX:SPK) AGL (ASX:AGL) and APA Group (ASX:APA) lost about 1 per cent each.

At the closing bell the S&P/ASX 200 index closed 11 points lower, or 0.2 per cent lower, to finish at 6,181.

Futures market

Dow futures are suggesting a fall of 45 points.
S&P 500 futures are eyeing a dip of 2 points.
The Nasdaq futures are eyeing rise of 2 points.
And the ASX200 futures are eyeing an 11 point fall tomorrow.

Most traded stocks

The top three stocks by value were BHP Billiton Limited (ASX:BHP), CSL (ASX:CSL) and Westpac (ASX:WBC).

Economic news

A key leading indicator of the job market, job vacancies eased in August, according to the ABS. Job vacancies rose 3.4 per cent over the August quarter August to 240,900 (trend). Over the year, job vacancies rose by 19.3 per cent, with private sector vacancies rising the most, 20.3 per cent and public sector vacancies lifting by 9.5 per cent. The rates have come off May’s numbers, which were much higher, at multi-year highs.

Company news

Propertylink Group (ASX:PLG) deemed it ‘prudent’ to commission independent valuations for its portfolio after it receiving a $693 million takeover offer at $1.15 cash per share from ESR Real Estate. It also believes Propertylink taking over Centuria’s Industrial REIT (ASX:CIP) will benefit Centuria Industrial REIT (ASX:CIP) and Propertylink shareholders. Propertylink Group (ASX:PLG) shares closed 0.9 per cent lower at $1.11, while Centuria Capital Group (ASX:CNI) closed 0.7 per cent lower at $1.36.

Beach Energy (ASX:BPT) announced growth plans, its target for $2 billion free cash flow and plans to grow production in FY23.

Xero (ASX:XRO) is raising US$300 million via a convertible note issue. The net proceeds, US$242 million will be used for potential acquisitions and investments to drive shareholder value.

Syrah Resources (ASX:SYR) advised its binding mining agreement with the Government of Mozambique has now been sanctioned. The agreement consolidates all prior projects and approvals for its Balama project and provides the company with clarity around its mining rights and the governing laws.

Best and worst performers of the day

The best performing sector was Telco Services adding 0.4 per cent while the worst performing sector was Utilities, shedding 1 per cent.

The best performing stock in the S&P/ASX 200 was Beach Energy Limited (ASX:BPT), rising 7.5 per cent to close at $2.14. Shares in Speedcast International Limited (ASX:SDA) and Nanosonics Limited (ASX: NAN) followed higher.

The worst performing stock in the S&P/ASX 200 was Evolution Mining Limited (ASX:EVN), dropping 2.6 per cent to close at $2.64. Shares in Cromwell Property Group (ASX:CMW) and Northern Star Resources (ASX:NST) followed lower.

Asian markets

Lower. Japan’s Nikkei has lost 0.9 per cent, Hong Kong’s Hang Seng has lost 0.5 per cent and the Shanghai Composite has lost 0.7 per cent.

Commodities and the dollar

Gold is trading at US$1,196 an ounce.
Iron ore price fell 0.4 per cent to US$68.96. Its futures are pointing to a fall of 0.8 per cent.
Light crude is US$0.24 down at US$72.04 a barrel.
One Australian dollar is buying 72.3 US cents.


Bitcoin has gained 0.4 per cent to US$6,480, Ethereum has gained 1.2 per cent to US$216 and EOS has fallen 0.4 per cent to US$0.52, in the last 24 hours.

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.