Oil companies brace for Tropical Storm Barry: ASX closed 0.4% higher

Market Reports

by Rachael Jones

It has been a positive day of trade for the Australian share market. After the local bourse managed to gain momentum closing 0.4 per cent higher. BHP (ASX:BHP) has joined other oil companies in shutting down their Gulf of Mexico operations in anticipation of tropical Storm Barry. We reported earlier that Byron Energy (ASX:BYE) have already commenced evacuations. All sectors closed higher with Information Technology continuing to lead the charge.

At the closing bell the S&P/ASX 200 index closed 26 points higher to finish at 6,716.

Futures market

Dow futures are suggesting a rise of 58 points.
S&P 500 futures are eyeing a rise of 7 points.
The Nasdaq futures are eyeing a lift of 28 points.
And the ASX200 futures are eyeing a 31 point rise tomorrow.

Economic news

The value of new lending commitments to households fell 1.3 per cent in May 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) figures on new lending to households and businesses.

The fall in new lending to households in May follows a 0.6 per cent rise in April 2019.

Broker moves

WiseTech Global (ASX:WTC) had its ‘buy’ rating reiterated by Citi Research, with the international bank upping its price target for the tech major to $32.77, up from $21.31. Citi says there is increased conviction for WiseTech and its customers are increasingly validating its business, saying WTC offers fasters processing speeds and lower errors in its logistics software. Shares in WiseTech Global (ASX:WTC) closed 3.5 per cent higher at $30.45.

Company news

Alliance Mineral Assets (ASX:A40) has seen another strong quarter from its Bald Hill lithium-tantalum mine near Kalgoorlie in Western Australia. They have seen a slight increase in tonnage in high grade lithium concentrate about a 3 per cent increase in Lithia from the March 2019 quarter. Shares in Alliance Mineral Assets (ASX:A40) closed flat at $0.13

Whitehaven Coal (ASX:WHC) saw a strong finish to the year with coal production up 25 per cent on the previous corresponding period. They received better than expected prices for its thermal coal in the three months to June 30. They achieved a price of US$84 per tonne for thermal coal sales, 5 per cent higher than the average price for the period. Shares in Whitehaven Coal (ASX:WHC) closed 4.9 per cent higher at $3.83.

The Australian Prudential Regulation Authority (APRA) are applying additional capital requirements to National Australia Bank (ASX:NAB), Westpac (ASX:WBC) and ANZ (ASX:ANZ) in response to risk governance self-assessments. They will require each bank to hold additional $500 million of operational risk capital.

Jeweller Michael Hill International (ASX:MHJ) is set to do a full remediation program after a review of retail employment contracts showed many staff were underpaid in the range of $10 million to $25 million.

The Commerce Commission has granted clearance for Infratil (ASX:IFT) to buy a 50 per cent stake in Vodafone New Zealand. The enterprise value is NZ$3.4 billion.

Best and worst performers of the day

The best performing sector was Info tech added the most at 1.4 per cent whilst Utilities added the least at 0.04 per cent.

The best performing stock in the S&P/ASX 200 was Resolute Mining (ASX:RSG), rising 9.8 per cent to close at $1.52. Shares in Cooper Energy (ASX:COE) and Whitehaven Coal (ASX:WHC) followed higher.

The worst performing stock in the S&P/ASX 200 was Sims Metal Management (ASX:SGM), dropping 3.9 per cent to close at $10.22. Shares in Platinum Asset Management (ASX:PTM) and Emeco Holdings (ASX:EHL) followed lower.

Asian markets

Japan’s Nikkei has added 0.5 per cent, Hong Kong’s Hang Seng has added 0.9 per cent and the Shanghai Composite has gained 0.1 per cent.

Commodities and the dollar

Gold is trading at US$1,421 an ounce.
Iron ore price fell 0.5 per cent to US$120.96
Iron ore futures are pointing to a fall of 0.2 per cent.
Light crude is US$2.17 up at US$59.88 a barrel.
One Australian dollar is buying 69.71 US cents.

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