Three day run, reporting season kicks off: Aus shares close 0.3% higher

Market Reports

by Jessica Amir

The Australian share market notched its third-day of gains today, with most of the sectors rising and with the smaller Tech sector hustling ahead and Industrials leading the large pack higher.

Selling in CSL as well, as in Financials capped gains today. We saw some mixed news out of the financial sector on the back of earnings season which came into full swing, while we also saw some profit taking after the Financial sector saw its biggest gain in 10 years yesterday, rising 4.5 per cent yesterday.

At the closing bell the S&P/ASX 200 index we finished with a 20 point profit, or a 0.3 per cent gain, finishing at 6,026.

Last night, all US indices rose ahead of Trump’s State of Union address, with the Nasdaq and Dow Jones up the most, about 0.7 per cent.


Dow futures are suggesting a gain of 1 point.
S&P 500 futures are eyeing a rise of 1 point.
The Nasdaq futures are eyeing a gain of 7 points.
And the ASX200 futures are eyeing a 30 point rise tomorrow morning

Company news 

The real estate investment trust (REIT) which leases to Bunnings, (which is owned by Wesfarmers (ASX:WES)), BWP Trust (ASX:BWP) has reported its half-year profit (for the six months to 31 December) fell from $103.3, down to $78.9 million, while its total revenue rose $2.1 million, from about from $76.9 million (in the same time last year) to $79 million. Shares in BWP Trust (ASX:BWP) closed 1.6 per cent lower at $3.65. Year on year its shares are up 27 per cent.

Coles Group (ASX:COL) and Viva Energy (ASX:VEA) have entered into a new alliance agreement until 2029. Viva Energy will pay $137 million to renew its fuel partnership with Coles. Year on year, Viva Energy shares are 13 per cent lower, while Coles years are 2.7 per cent lower over the same period.

CBA (ASX:CBA) reported its first half 2019 results, with a 2 per cent EPS miss according to UBS, while its cash earnings results were 1 per cent ahead of Citi’s expectations. Its cash net profit after tax came in at $4.7 billion, less than $4.8 billion expected by consensus. Meantime, revenue from ordinary activities fell 4 per cent to $12.3 billion. Year on year its shares are down 6 per cent.

Construction and engineering firm, CIMIC Group (ASX:CIM) has reported its net profit after tax (NPAT) rose about 11 per cent on 2017 to $781 million for the 2018 full year. The result is at the top end of the company's guidance. Its revenue strengthened over 2018, rising 9 per cent on last year to $14.7 billion. Year on year its shares are up 4.4 per cent.

Best and worst performers of the day

The best performing sector was Industrials adding 2.1 per cent (with Sydney Airports (ASX:SYD) up 4.3 per cent and Virgin Australia (ASX:VAH) up 4.1 per cent). The worst performing sector was Health Care, shedding 0.9 per cent with selling in (CSL (ASX:CSL) after its shares fell 2.1 per cent).

The best-performing stock in the S&P/ASX 200 was Viva Energy Group (ASX:VEA), rising 13.8 per cent to close at $2.19. Shares in Bellamy's Australia (ASX:BAL) and Bravura Solutions (ASX:BVS) followed higher.

The worst performing stock in the S&P/ASX 200 was Ooh!Media (ASX:OML), dropping 4.6 per cent to close at $3.57. Shares in Northern Star Resources (ASX:NST) and Costa Group Holdings (ASX:CGC) followed lower.

Asian markets

Japan’s Nikkei has added 0.2 per cent, Hong Kong’s Hang Seng has added 0.2 per cent and the Shanghai Composite has gained 1.3 per cent.

Commodities and the dollar

Gold is trading at US$1,314 an ounce.
Iron ore price is steady at to US$85.53
Iron ore futures are pointing to a rise of 6.3 per cent.
Light crude is $0.84 lower at US$53.72 barrel.
One Australian dollar is buying 71.53 US cents.

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