AUD rally decelerates after reaching 1.5-year high: ASX closes 0.2% lower

Market Reports

by Michael Luu

The Australian share market finished lower despite promising signs of an afternoon rally after Midday. Meanwhile, the Australian dollar reached a 1.5-year high this morning, surpassing the 73.8- cent mark for the first time since December 2018. This was a response to the release of private sector profitability and borrowing data. However, the rally decelerated after Midday, on the back of the US dollar strengthening.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 0.2 per cent lower or 13 points down to finish at 6,061.

Futures market

US futures are all in the black
Dow futures are suggesting a rise of 114 points.
S&P 500 futures are eyeing a gain of 14 points.
The Nasdaq futures are eyeing a lift of 76 points.
And the ASX200 futures are eyeing a steady start for tomorrow morning

Company news

Womenswear retailer Mosaic Brands (ASX:MOZ) has reopened 129 stores in Westfield shopping centres after being locked out 10 days ago by its landlord, Scentre Group, in a dispute over rent. Shares in Mosaic Brands closed 17.7% higher to finish at 57 cents.

NAB (ASX:NAB) agrees to sell its MLC Wealth business to IOOF for $1.44 billion. The agreement follows the strategic decision announced by NAB in 2018 to pursue an exit of MLC and is in line with NAB’s strategy to simplify and focus on its core banking business.

Sealink Travel Group (ASX:SLK) has posted a $13.5 million loss for the 2020 financial year compared to a statutory Net Profit After Tax of $21.5 million for the year earlier period.
Finally, AGL Energy (ASX:AGL) has entered into a binding agreement for the acquisition of Click Energy Group, a wholly owned subsidiary of amaysim Australia, for $115 million.

Best and worst performers of the day

The best performing sector was Energy adding 2.1 per cent while the worst performing sector was Health Care, shedding 1.3 per cent. The best performing stock in the S&P/ASX 200 was EML Payments (ASX:EML), rising 6.6 per cent to close at $3.41 Shares in Service Stream (ASX:SSM) and Scentre Group (ASX:SCG) followed higher.

The worst performing stock in the S&P/ASX 200 was Orocobre (ASX:ORE), dropping 10.3 per cent to close at $2.60. Shares in Fortescue Metals Group (ASX:FMG) and Domino’s Pizza Enterprises (ASX:DMP) followed lower.

Asian markets

All higher: Japan’s Nikkei has is up 1.4 per cent, Hong Kong’s Hang Seng has added 0.7 per cent and the Shanghai Composite has gained 0.6 per cent.

Commodities and the dollar

Gold is trading at US$1,968 an ounce.
Iron ore price rose 1.8 per cent to US$124.37.
Iron ore futures are pointing to a rise of 3.8 per cent.
Light crude has gained US$0.14 to US$43.76 a barrel.
One Australian dollar is buying 73.49 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.