Eyes on RBA minutes today, Altium’s results a record: Aus shares to extend yesterday’s gain at open

Market Reports

by Jessica Amir

Wall Street is continuing to bounce back from the August sell-off after the US Government extended the ability for US companies to do business with Chinese telecom giant Huawei for 90 days. Apple shares rose almost 2 per cent on the news and chipmaker Micron Technology rose 3.4 per cent, with The VanEck Vectors Semiconductor ETF rising 1.7 per cent.

As for the major US indices the Nasdaq rose most, 1.4 per cent with the other two indices, Dow up 1 per cent the S&P 500 up 1.2 per cent. All of which added to the rebound from the worst session of 2019 last week.

In other news, bonds around the global are also bouncing back, quashing some fears of a possible recession after we saw the US yield curve invert last week (a sign of a possible recession).

And the Australian dollar is continuing to plateau around the US 67.64 cent mark, where it sank to early August, and also where it last traded almost 10 year ago, in March 2009.
The ASX SPI futures are pointing to a 0.2 per cent (12 point) gain. Yesterday, the Australian share market closed 62 points or 0.97 per cent higher at 6,467.

Local economic news

Reserve Bank will release its minutes from the Board meeting held on 6 August, where the RBA held rates at unchanged at 1.00 per cent as expected. All eyes will be on the new economic forecasts, which are likely to have led their discussion. Westpac is expecting the RBA to cut rates by 0.5 per cent in October, while some economists are expecting a rate cut of 0.25 per cent in November.

Markets

Wall Street closed higher on Monday: The Dow Jones Industrial Average added almost 1per cent to close at 26,136, the S&P 500 closed 1.2 per cent higher at 2924 and the Nasdaq gained 1.4 per cent to 8003.

European markets closed higher: London’s FTSE added over 1.0 per cent, Paris gained 1.3 per cent and Frankfurt was up 1.3 per cent.

Asian markets closed higher: Tokyo’s Nikkei gained 0.7 per cent, Hong Kong’s Hang Seng was up 2.2 per cent and China’s Shanghai Composite gained 2.1 per cent.

Company news

After the market close one of the fifth biggest tech companies, Altium (ASX:ALU) released its financial results for the year to 30 June 2019, showing a 41 per cent surge in NPAT to a record US$52.9 million on the back of a record subscriber base. It saw revenue growth across all business units and overall revenue growth of 23 per cent, to US$171.8 million. China led the ‘outstanding growth’ in revenue (with a jump of by 37 per cent). EPS growth rose 41 per cent, it declared a final dividend of AUD$0.18 with full year dividends up 26 per cent. Shares in Altium (ASX:ALU) closed 4.96 per cent higher at $33.67 yesterday. Its shares have gained 56 per cent over a year.

Reporting season

- BHP Group (ASX:BHP)
- Charter Hall Group (ASX:CHC)
- Estia Health (ASX:EHE)
- Kogan.com (ASX:KGN)
- Monadelphous Group (ASX:MND)
- Oil Search (ASX:OSH)
- SEEK (ASX:SEK)
- Senex Energy (ASX:SXY)
- Seven West Media (ASX:SWM)
- Sonic Healthcare (ASX:SHL)
- Tassal Group (ASX:TGR)

Ex-dividends

- Computershare Ltd (ASX:CPU) is paying 23 cents 30 per cent franked
- Glennon Small Companies Ltd (ASX:GC1) is paying 2 cents fully franked
- HT&E Limited (ASX:HT1) is paying 4 cents fully franked
- Legend Corporation (ASX:LGD) is paying 7 cents fully franked
- Microequities Asset Management Group Ltd (ASX:MAM) is paying 1 cents fully franked
- Reverse Corp Limited (ASX:REF) is paying 2.75 cents fully franked

Currencies

One Australian Dollar at 7:30 AM was buying 67.67 US cents, 55.81 Pence Sterling, 72.14 Yen and 61.08 Euro cents.

Commodities

Iron Ore futures suggest a 0.4 per cent fall
Gold has dropped $17.90 to US$1506 an ounce.
Silver was down $0.28 cents to US$16.84 an ounce.
Oil has gained $1.30 to US$56.11 a barrel.

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.