Fidelity sells down Independence Group, IFL to buy Bendigo’s FP book: ASX ends higher for 3rd day

Market Reports

by Jessica Amir

The Australian share market closed marginally higher today, ending in the black for the third straight session. The local bourse started the day in the red on negative Wall Street leads as US investors await earnings season kick off, however, it clawed back from early selling dipping in and out of the red on the back of mixed company news that came out throughout the day. 

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 2 points higher (0.03 per cent higher) at 6,224 points. 

Futures market

Dow futures are suggesting a rise of 20 points.
S&P 500 futures are eyeing a rise of 5 points.
The Nasdaq futures are eyeing al lift of 12 points.
And the ASX200 futures are eyeing a 3 point rise tomorrow morning.

Company news

Fidelity International Company reduced its holding position in Independence Group (ASX:IGO) from 9.92 per cent to 7.72 per cent. Year-to-date its shares have gained 27 per cent. Shares in Independence Group (ASX:IGO) closed 4.1 per cent lower at $4.87.

Seven West Media (ASX:SWM) completed the $20.75 million cash sale of its 50 per cent stake in Yahoo7. It comes just a week after Seven West Media launched, which already has a larger online daily news audience than Yahoo7. Year-to-date its shares have lost over 6 per cent.

Casino giant Wynn Resorts scrapped all talks and the potential $10 billion takeover offer of Crown Resorts (ASX:CWN), after Crown yesterday confirmed yesterday it was in confidential talks with the giant. Crown shares ended 9.1 per cent lower staying in the range they last traded at in October last yesterday. Yesterday its shares gained 20 per cent on the news yesterday. Year-to-date its shares have gained over 7 per cent.

Metal and electronics recycling company, Sims Metal Management (ASX:SGM) unveiled a plan to install and operate seven plants in 10 years that covert waste-to-energy. The business also announced it plans to buy or build a minimum of 50 megawatts of sites within the next six years, growing its 250 facilities across the world. Year-to-date its shares are up 5.1 per cent.

IOOF Holdings’ (ASX:IFL) Bridges Financial Services Group (Bridges), inked a deal to buy Bendigo’s (Bendigo and Adelaide Bank (ASX:BEN)) financial planning book for $3 million, plus a further payment on the anniversary of completion (subject client retention). It increases Bridge’s funds under advice by $1 billion. Year-to-date BEN shares are 9 per cent lower. While Year to date, IFL shares have gained 24 per cent.

Best and worst performers of the day

The best performing sector was the Info Tech sector adding 0.5 per cent, followed by Industrials, Property, Financials and Staples, while the worst performing sector was Energy, shedding 0.7 per cent followed by Consumer Discretionary and Unites.

The best performing stock in the S&P/ASX 200 Seven West Media (ASX:SWM), rising 6.2 per cent to close at $0.52. Shares in Estia Health (ASX EHE) and GWA Group (ASX:GWA) followed higher.

The worst performing stock in the S&P/ASX 200 was Crown Resorts (ASX:CWN), dropping 9.1 per cent to close at $12.77. Shares in Independence Group (ASX:IGO) and Sims Metals Management (ASX:SGM) followed lower.

Asian markets

Japan’s Nikkei has lost 0.6 per cent, Hong Kong’s Hang Seng has lost 0.4 per cent and the Shanghai Composite has lost 0.2 per cent.

Commodities and the dollar

Gold is trading at US$1,304 an ounce.
Iron ore price fell 0.5 per cent to U$94.85
Iron ore futures are pointing to a fall of 0.3 per cent.
Light crude is US$0.18 lower at US$64.22 barrel.
One Australian dollar is buying 71.49 US cents.

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