Out of steam ahead of Fed move and US tech earnings: Aus shares lose 0.1% Monday

Market Reports

by Jessica Amir

The local share market ran out of steam today, searching for direction until midday, then falling into negative territory in the afternoon. Energy stocks led the rally today after the WTI crude price rose 0.3 per cent after a tanker was seized by the Iranian military. While with the mining sector was in toe, continuing to push near those fresh multi year highs (ASX:XMJ).

At the closing bell the S&P/ASX 200 index closed 0.1 per cent lower or 9 points lower to finish at 6,691 points.

On Friday, US equities closed in the red, with the three major indices closing off their worst week since May, as investors await the Federal Reserve’s decision on rate rates, while earnings season also ramps up with tech majors reporting this week. 

Futures market

Dow futures are suggesting a rise of 22 points.
S&P 500 futures are eyeing a rise of 3 points.
The Nasdaq futures are eyeing a lift of 14 points.
And the ASX200 futures are 0.2per cent or 11 points.

Company news

EML Payments (ASX:EML) has snapped up salary packaging software from PayWith Worldwide for US$1 million in cash, plus will transfer its investment in PayWith Worldwide Inc. (of about 19 per cent) as part of the consideration. EML see $600,000 in immediate cash savings next financial year (FY20), and up to $1.0 million per year following the completion of the Smartgroup transition (announced 23 May 2019). The deal with Smargroup will see EML make $4 to $8 million in revenue each year from for their eight-year deal. Shares in EML Payments (ASX:EML) closed 0.3 per cent higher lower at $3.25. This year EML (ASX:EML) shares are up 117 per cent.

St Barbara (ASX:SBM) has successfully completed its acquisition of Atlantic Gold Corporation, effective 19 July 2019, for $780 million. Atlantic Gold will cease trading in Vancouver on TSX Venture Exchange on 23 July 2019. This year SBM (ASX:SBM) shares are down 22 per cent.

Synlait Milk’s (ASX:SM1) director of operations Neil Betteridge has resigned. He was one of the first employees appointed to the company, when it was founded over 10 years ago. There will be no change to existing commercial arrangements or operations. This year SM1 (ASX:SM1) shares are up 12 per cent.

Centuria Capital Group (ASX:CNI) has exchanged unconditional contracts to buy Adelaide CBD’s 80 Flinders Street office building for $127 million, generating a new fund for Centuria’s unlisted division. The building is fully per cent tenanted and leased by multinational and ASX listed companies. The fund will launch in August 2019 with distributions of 6.50 and 6.60 per cent. This year CNI (ASX:CNI) shares are up 44 per cent.

Best and worst performers of the day

The best performing sector was S&P/ASX Materials adding 1 per cent, on equal footing with Energy, while the worst performing sector was S&P/ASX A-REIT, gaining 1.4 per cent, closely followed by Healthcare and Utilities.

The best performing stock in the S&P/ASX 200 was Speedcast International (ASX:SDA), rising 6.7 per cent to close at $1.92. Shares in Beach Energy (ASX:BPT) and Clinuvel Pharmaceuticals (ASX:CUV) followed higher.

The worst performing stock in the S&P/ASX 200 was Invocare Limited (ASX:IVC), dropping 6.5 per cent to close at $15.15. Shares in ASX (ASX:ASX) and Eclipx Group (ASX:ECX) followed lower.

Asian markets

Japan’s Nikkei has lost 0.3 per cent, Hong Kong’s Hang Seng has shed 0.8 per cent and the Shanghai Composite has lost the most 0.8 per cent.

Commodities and the dollar

Gold is trading at US$1,426 an ounce.
Iron ore price rose 1.6 per cent to US$121.79
Iron ore futures are pointing to a fall of 0.3 per cent.
Light crude is US$0.44 up at US$55.86 a barrel.
One Australian dollar is buying 70.35 US cents.

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