ASX200 ends today 0.6% lower: Aus shares down 2.3% over week

Market Reports

by Katrina Bullock

It’s been a shaky day for the Australian share market. After opening lower, the ASX ebbed and flowed throughout the morning, only managing to peak above the open price for a few minutes around midday, then teetered off over the afternoon to close 0.6 per cent lower.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 36 points lower to finish at 5,919.

Over the week, the market has lost 2.3 per cent.

Futures market

Dow futures are suggesting a fall of 189 points.
S&P 500 futures are eyeing a dip of 20 points.
The Nasdaq futures are eyeing a fall of 53 points.
And the ASX200 futures are eyeing a 38 point fall on Monday morning.

Company news

UBS has downgraded Treasury Wines Estates (ASX:TWE) from a Buy to a Neutral, with a 12 month price target of $11.80. The company’s 2020 financial year earnings guidance of $530 to $540 million is below the broker’s expectations. UBS questions whether earnings in the Americas will fully recover. The broker envisages several areas of risk, given margin pressure, accelerating market share loss and uncertainty around industry oversupply. Shares in Treasury Wines Estates (ASX:TWE) closed 3.9 per cent lower at $10.52.

Tilt Renewables (ASX:TLT) now expects EBITDAF for the 2021 financial year to be in the range of $65 to $80 million.

New Zealand internet services provider Chorus (ASX:CNU) says the COVID-19 lockdown restrictions have had a significant impact on fibre activity and uptake in the 4th quarter. Total fixed line connections declined by 4,000 to around 1.4 million over the quarter.

Nine Entertainment (ASX:NEC) CFO Paul Koppelman has resigned for personal reasons, including the recent death of a family member. This news came this morning as Nine Entertainment announced that it is expecting to report Group EBITDA in the range of $390 to $410 million for the 2020 financial year.

Buy now, pay later provider Sezzle (ASX:SZL) is to raise $86.3 million. The company aims to raise $79.1 million via a fully underwritten institutional placement, and $7.2 million via a non-underwritten security purchase plan.

Best and worst performers

The best-performing sector was Consumer Staples, rising 0.4 per cent, while the worst-performing sector was Energy, losing 2 per cent.

The best-performing stock on the S&P/ASX 200 was Netwealth Group (ASX:NWL), rising 5.6 per cent to close at $10.70. It was followed by shares in Silver Lake Resources (ASX:SLR) and IPH (ASX:IPH).

The worst-performing stock on the S&P/ASX 200 was Chorus (ASX:CNU), shedding 7.5 per cent to close at $6.76. It was followed by shares in Avita Therapeutics (ASX:AVH) and Corporate Travel Management (ASX:CTD).

Asian markets

Lower. Japan's Nikkei has lost 0.7 per cent, Hong Kong's Hang Seng has dropped 2 per cent and the Shanghai Composite has shed 1.4 per cent.

Wall Street 

Wrapped up our four trading days this week mixed: The Dow Jones lost 0.5 per cent, The S&P 500 added 0.7 per cent and the tech heavy Nasdaq gained 3.2 per cent.

Commodities and the dollar

Gold is trading at US1797 an ounce.
The iron ore price is 0.2 per cent lower at US106.32 a ton.
Its futures are pointing to a rise of 0.3 per cent.
Light crude is 59 cents lower at US$39.24 a barrel.
One Australian dollar is buying 69.31 US cents.

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.