City Chic (ASX:CCX) to buy Avenue Stores e-commerce assets: Aus shares down 3.1% over week

Market Reports

by Katrina Bullock

It’s been a terrific afternoon for the S&P/ASX200. After opening lower and seeing an early spike the market lost momentum coming into the middle of the session. A bullish run began at midday and continued to the close bringing the market 0.4 per cent higher over the day. However, this wasn’t enough to unwind the losses we experienced on Wednesday. Healthcare drove the market today finishing the day 2.3 per cent higher, buoyed by strong performances from CSL (ASX:CSL) and Phylogica (ASX:PYC). Healthcare was also the only sector to make gains over the week. Plus sized retailer, City Chic Collective (ASX:CCX) has purchased the e-commerce assets of US bankrupt company, Avenue Stores.

Broker moves

UBS has downgraded construction, property and infrastructure company Lendlease Group (ASX:LLC) from a buy to a neutral, with a 12-month price target of $17.50. UBS believes the market is pricing in a solid outcome for the sale of the engineering and services business. They advocate that net sale proceeds could be materially lower than the market expects given the higher than expected negative working capital balance in that division. Shares in Lendlease Group (ASX:LLC) closed 0.9 per cent lower at $16.93.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 24 points higher to finish at 6,517.

Over the week, the market has lost 199 points or 3.1 per cent.


Dow futures are suggesting a rise of 5 points.
S&P 500 futures are eyeing a dip of 1 point.
The Nasdaq futures are eyeing a lift of 6 points.
And the ASX200 futures are eyeing a 33 point rise on Monday morning.

Economic news

Figures released today from the Australian Bureau of Statistics show that Australian retail turnover rose 0.4 per cent in August 2019 in seasonally adjusted terms. This follows a relatively unchanged result (0.0 per cent) in July 2019.

The Reserve Bank of Australia released its Financial Stability Review which found that uncertainty about the outlook for global economic growth has increased since the previous review, with a greater chance of weak growth. This bearish sentiment follows the US-China trade war, ongoing tensions in Hong Kong and the Middle East and political tensions surrounding Brexit.

Company news

Plus sized retailer, City Chic Collective (ASX:CCX) has purchased the e-commerce assets of US bankrupt company, Avenue Stores. This follows news last week that City Chic was the Stalking Horse Bidder. The auction took place overnight in the United States with City Chic paying US$16.5 million. The purchase is subject to the approval of the US Bankruptcy Court in Delaware on Monday and, if successful, is expected to settle in mid-October 2019. Shares in City Chic Collective (ASX:CCX) closed 11.2 per cent higher at $2.78.

The Commonwealth Bank of Australia (ASX:CBA) saw a sell off after news that the Director of Public Prosecutions had served criminal proceedings on its subsidiary, Colonial Mutual Life Assurance Society. The proceedings related to 87 alleged contraventions of the anti-hawking provisions of the Corporations Act 2001 (Cth).

Briscoe Group Australasia (ASX:BGP) has shown its support for the Kathmandu Holdings (ASX:KMD) capital raising by purchasing $13.6 million New Zealand dollars worth of shares.

Medical cannabis company Althea Group Holdings (ASX:AGH) has had a record month for patient uptake in September.

The board of Metals X (ASX:MLX) has unanimously advised shareholders to vote against the appointment of activist investor representative Brett Smith as a Director at the upcoming AGM.

Best and worst performers of the day

The best performing sector was Healthcare adding 2.3 per cent while the worst performing sector, and the only sector in the red today was Financials, shedding 0.1 per cent.

The best performing stock in the S&P/ASX 200 was Jumbo Interactive (ASX:JIN) rising 6.1 per cent to close at $26.90. Shares in Clinuvel Pharmaceuticals (ASX:CUV) and Bingo Industries (ASX:BIN) followed higher.

The worst performing stock in the S&P/ASX 200 was Galaxy Resources (ASX:GXY), dropping 5.1 per cent to close at 94 cents. Shares in Mayne Pharma (ASX:MYX) and St Barbara (ASX:SBM) followed lower.

Asian markets

Mixed: Japan’s Nikkei has added 0.2 per cent, Hong Kong’s Hang Seng has lost 0.7 per cent and the Shanghai Composite is closed due to the National Holiday period.

Wall Street

Wrapped up our four trading days this week lower: The Dow Jones lost 2.4 per cent, The S&P 500 lost 1.8 per cent and the tech heavy Nasdaq lost 0.9 per cent.

Commodities and the dollar

Gold is trading at US$1,508 an ounce.
Light crude is US$0.14 lower at US$52.31 a barrel.
One Australian dollar is buying 67.55 US cents.

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