Stellar session: Aus shares close 0.6% higher, 140 pts off all time high

Market Reports

by Jessica Amir

It has been a stellar week and day of trade for the Australian share market. After opening in the black the local bourse continued to push higher, closing at a fresh new 11.5 year high with S&P/ASX 200 index adding 39 points higher to finish at 6,687 with most sectors closing in the black. Yesterday the ASX rose 1.2 per cent. So now the S&P/ASX 200 is now about 141 points from the all-time high of 6,829 (from 1 November 2007).

From the outset we had positive US leads after Wall Street closed higher on the Fed Reserve hinting it would cut rates in 2020. While eight of Federal Open Market Committee (FOMC) members are in favour of a rate cut this year.

Futures market

Dow futures are suggesting a rise of 92 points.
S&P 500 futures are eyeing a rise of 13 points.
The Nasdaq futures are eyeing a lift of 56 points.
And the ASX200 futures are eyeing a 3 point fall tomorrow morning.

Company news

GPT Group (ASX:GPT) received commitments to raise $800 million (at a price of $6.07) via an institutional placement (announced yesterday) to ramp up property purchases and support growth. The price was a 4.1 per cent discount to Tuesday’s close price. GPT plans to take its stake in Darling Park 1 and 2 office complex and Cockle Bay Wharf complex, Sydney, to 75 per cent, after it buys 25 per cent for $531 million. Citi Research says the group was tracking ahead of its planned EPS growth for FY19, however GPT has now reduced its guidance to 2.5 per cent (from 4 per cent). Citi maintained its sell position in the stock, however it bumped up its 12-month target price from $5.47 to $5.73. Shares in GPT Group (ASX:GPT) closed 1.58 per cent lower at $6.23.

Catlex (ASX:CTX) shares have lost about five years of gains, after cutting its profit guidance by about $156 million for the half year 30 June 2019 and its earnings by about $173 million. The EBIT drop takes the $40 million negative impact into consideration, from the repriced Woolworths fuel supply contract.

Rio Tinto (ASX:RIO) drops iron ore guidance by 13 million tonnes amid mine operational challenges, particularly in the Greater Brockman hub in the Pilbara. It’s now targeting between 320 million tonnes and 330 million tonnes. Down from 333 million tonnes and 343 million tonnes.

Sydney Airport (ASX:SYD) overseas passengers soared 6.3 per cent in May, boosted by US and Asian passengers with Malaysian passenger growth up 15.3 per cent.

Villa World (ASX:VLW) plans to recommend AVID's $293.5 million takeover offer. Villa World plans to provide an update on the revised offer ($2.3451 per share cash) by 30 June 2019.

Best and worst performers of the day

The best performing sector was Information Technology adding 2.2 per cent while the worst performing sector, and the only sector in the red, was Energy, shedding 0.2 per cent.

The best performing stock in the S&P/ASX 200 was Resolute Mining (ASX:RSG), rising 10.2 per cent to close at $1.19. Shares in St Barbara (ASX:SBM) and Northern Star Resources (ASX:NST) followed higher.

The worst performing stock in the S&P/ASX 200 was Caltex Australia (ASX:CTX), dropping 13.3 per cent to close at $23.40. Shares in Viva Energy Group (ASX:VEA) and Rio Tinto (ASX:RIO) followed lower.

Asian markets

Higher: Japan’s Nikkei has added 0.6 per cent, Hong Kong’s Hang Seng has added 0.9 per cent and the Shanghai Composite has gained 2.2 per cent.

Commodities and the dollar

Gold is trading at US$1,386 an ounce.
Iron ore price rose 1.6 per cent to US$114.08.
Light crude is US$0.27 up at US$54.38 a barrel.
One Australian dollar is buying 69.04 US cents.

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