ASX bloodbath continues: Aus shares close 3.3% lower

Market Reports

by Ortenzia Borre

It has been a horrid day of trade for the Australian share market. The ASX200 plunged at the open and has seen another sell-off throughout the day which dragged the index 3.3 per cent lower. The Australian dollar also hit a new 10 year low of US65.28¢, a figure not seen since March 2009. All sectors landed in the red today as did the Futures and Asian markets.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 217 points lower to finish at 6,441.

Futures market

Dow futures are suggesting a loss of 183 points.
S&P 500 futures are eyeing a slide of 36 points.
The Nasdaq futures are eyeing a fall of 150 points.
And the ASX200 futures are eyeing a 214 point fall on Monday morning.

Broker Moves

UBS has rated Prospa Group (ASX:PGL) as a Buy. The broker says first half results were in line with expectations. Average loan terms continue to lengthen and the benefit from lower risk customers has delayed a positive impact on provisioning, which should support lower cost of funds. UBS states the company remains the market leader in its sector and believes opportunity remains. Target is reduced to $3.05 from $3.10. Shares in Prospa Group (ASX:PGL) closed 4.1 per cent lower at $1.74.

Company news

IOOF (ASX:IFL) has been served with a class action proceeding filed by Shine Lawyers in the Federal Court of Australia. The case represents a number of shareholders of IOOF who acquired an interest in the company’s shares between 1 March 2014 and 7 July 2015. The Shine Lawyers claim alleges that IOOF did not disclose to the market information concerning its operations that was subsequently published in the media between late June and early July 2015 and which Shine Lawyers now allege IOOF was required to disclose at an earlier date. IOOF (ASX:IFL) says the claim appears without merit and intends to defend it. Shares in IOOF (ASX:IFL) closed 4.9 per cent lower at $5.67. 

Looking at some more headlines: 

Plumbing and bathroom supplies company Reece (ASX:REH) see sales revenue rise up 9% in recent results for the half-year ended 31 December 2019.

Horizon Oil (ASX:HZN) terminates CEO Michael Sheridan

Harvey Norman (ASX:HVN) announces profit has been impacted by bushfires and property prices

IPO

Kaiser Reef (ASX:KAU) started trading today. The issue price was 20 cents with the company opening at 22.5 cents and closed at 25 cents.

Best and worst performers of the day

The sector with the fewest losses was Utilities, shedding 1 per cent while the worst performing sector was Info Tech, shedding 4.7 per cent. 

The best performing stock in the S&P/ASX 200 was Next DC (ASX:NXT), rising 6.3 per cent to $7.89, followed by shares in Perenti Global (ASX:PRN) and Jumbo Interactive (ASX:JIN).

The worst performing stock in the S&P/ASX 200 today was Harvey Norman (ASX:HVN), dropping 14.1 per cent to close at $3.71. Shares in Gold Road Resources (ASX:GOR) and Clinuvel Pharmaceuticals (ASX:CUV) followed lower. 

Asian markets

Japan’s Nikkei has lost 4.2 per cent, Hong Kong’s Hang Seng has shed 2.8 per cent and the Shanghai Composite has lost 3.6 per cent. 

Commodities and the dollar 

Gold is trading at US$1,641 an ounce. 
Iron ore price is 2.7 per cent lower at US$85.72.
Iron ore futures are pointing to a fall of 3.1 per cent.
Light crude is 75 cents lower at US$46.34 a barrel.
One Australian dollar is buying 65.21 US cents.