Weak 1H profits see CIMIC shares plummet: ASX closes 0.4% lower

Market Reports

by Rachael Jones

It has been a negative day of trade for the Australian share market. After opening in the red the local bourse failed to gain momentum closing 0.4 per cent lower. Western Areas (ASX:WSA) shares saw a rise today after they reported a strong quarter cashflow and met all production and cost guidance metrics for FY19. Cash plus nickel sales receivables continued to build during the quarter, increasing to $157.1 million. CIMIC (ASX:CIM) and Eclipx (ASX: ECX) were down. Evolution (ASX:EVN) and Saracen (ASX:SAR) are up.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 24 points lower to finish at 6,649.

Futures market

Dow futures are suggesting a fall of 91 points.
S&P 500 futures are eyeing a dip of 8 points.
The Nasdaq futures are eyeing a fall of 42 points.
And the ASX200 futures are eyeing a 0.4 per cent fall tomorrow morning.

Economic news

The unemployment rate remained at a seasonally adjusted 5.2 per cent for June with an increase in people with full-time work offsetting a decrease in part-time work.

Company news

Ausnet (ASX:AST) released details of their AGM showing an increase in dividends by 5 per cent and recording total shareholder returns of 13.9 per cent. Australia’s energy sector continues to undergo disruption, driven by technology change, an accelerating shift to renewables and increasing customer engagement. AusNet Services is the largest diversified energy network business in Victoria, owning and operating $12.8 billion of assets. Shares in Ausnet (ASX:AST) closed flat at $1.83.

Lendlease (ASX:LLC) shares rose when they announced they had entered into an agreement with Google in the US to plan and develop three major areas in the San Francisco Bay Area in California. Google and Lendlease will work together for the next 10 to 15 years. 

Santos (ASX:STO) released their second quarter activities report showing the first half of 2019 had delivered record production volumes and sales revenues, along with strong free cash flow of over $600 million.

Byron Energy (ASX:BYE) has been advised that Metgasco has exercised the 10.0 million options it holds over unissued Byron shares, at $0.25 per security, with an expiry date of 21 July 2019, in accordance with the option terms.

Best and worst performers 

The best performing sector was Telco Services adding 0.3 per cent while the worst performing sector was Energy, shedding 2.3 per cent.

The best performing stock in the S&P/ASX 200 was Western Areas (ASX:WSA), rising 5.3 per cent to close at $2.37. Shares in Evolution (ASX:EVN) and Saracen (ASX:SAR)followed higher.

The worst performing stock in the S&P/ASX 200 was CIMIC Group (ASX:CIM),dropping 19 per cent to close at $37.09. Shares in Eclipx Group (ASX:ECX) and Beach Energy (ASX:BPT) followed lower.

Asian markets

Japan’s Nikkei has lost 2.2 per cent, Hong Kong’s Hang Seng has lost 0.6 per cent and the Shanghai Composite has lost 0.8 per cent.

Commodities and the dollar

Gold is trading at US$1,423 an ounce.
Iron ore price fell 0.7 per cent to US$121.27
Iron ore futures are pointing to a rise of 0.1 per cent.
Light crude is US$1.03 down at US$56.71 a barrel.
One Australian dollar is buying 70.37 US cents.