Apple has $207b in cash on hand as it closes one China store: ASX poised to open higher

Market Reports

by Rachael Jones

Following positive leads from US markets, the Australian share market looks set to open higher this morning. Investors fears have been placated somewhat by China’s actions to control the coronavirus. US health officials are fast-tracking work on a vaccine, hoping to start an early-stage trial within the next three months. Meanwhile, Apple CEO Tim Cook says the company is restricting travel in China as the virus continues to spread. Yesterday, Apple reported revenue and profit significantly higher than analysts expectations - the stock spiked over 3 per cent. On the commodities front, oil has risen and gold has lost.

Local economic news 

Consumer Price Index for December 2019.


Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.7 per cent to close at 28,723, the S&P 500 added 1 per cent to close at 3,276 and the NASDAQ rose 1.4 per cent to close at 9,270.

European markets closed higher: London’s FTSE gained 0.9 per cent, Paris closed 1.1 per cent higher and Frankfurt added 0.9 per cent.

Asian markets: Tokyo’s Nikkei lost 0.6 per cent, Hong Kong’s Hang Seng and China’s Shanghai Composite are still closed for the Lunar New Year.

Taking all of this into equation, the ASX futures are pointing to a 38 points rise. Yesterdaythe Australian share market closed higher/lower with the S&P/ASX 200 Index closing 96 points lower at 6,994.

Company news 

Centuria Capital Group (ASX:CNI) is to make a takeover offer to acquire one of New Zealand’s largest listed real estate funds management platforms, Augusta Capital. They expect to pay $174 million. If successful, Centuria AUM will increase by $1.9 billion to $9.2 billion representing a 26 per cent increase. Augusta shareholders will be offered NZ$2.00 per share in either cash or Centuria scrip via a “Mix and Match” facility. Centuria to fund the transaction from existing cash reserves, scrip and the net proceeds of a $60 million equity raising at A$2.34 per Centuria security. FY20 EPS guidance of 12.5 cents per security. Shares in Centuria Capital Group (ASX:CNI) closed flat yesterday at $2.41.


One company is going ex-dividend today: Djerriwarh (ASX:DJW) is paying 8.75 cents fully franked.


One Australian Dollar at 9:00AM was buying 67.65 US cents, 51.96 Pence Sterling, 73.82 Yen and 61.36 Euro cents.


Gold has lost $11.70 to US$1,572 an ounce.
Silver has lost $0.61 to US$17.45 an ounce.
Oil has risen by $0.84 to US$53.98 a barrel.

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.