Market welcomes IPOs: The ASX closed 0.1% lower

Market Reports

by Rachael Jones

The Australian share market managed to close 0.1 per cent down. Iluka Resources (ASX:ILU) saw a sharp drop in their shares today thanks to the spin-off of its royalties business, the Deterra Royalties (ASX:DRR).

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 7 points lower to finish at 6,167.

Over the week it has lost 10 points, or 0.2 per cent.

Futures market

Dow futures are suggesting a rise of 23 points.
S&P 500 futures are eyeing a lift of 1 points.
The Nasdaq futures are eyeing a rise of 9 points.
And the ASX200 futures are eyeing a 10 point fall for Monday morning.

Local economic news

The Mining industry saw continued growth in 2018-19. EBITDA for the year increased by 32.2 per cent ($33.7b). The Manufacturing industry experienced a second consecutive year of growth with EBITDA rising 9.1 per cent ($3.3b). The Construction industry, while still showing positive EBITDA growth of 5.4% ($2.5b), slowed from the previous year's 8.0% ($3.4b). Health care and social assistance industry EBITDA grew 7.2% ($1.9b). Information media and telecommunications reported a decline of 10.8% in EBITDA (down $2.1b).

Company news

CIMIC Group’s (ASX:CIM) minerals processing company, Sedgman, has been awarded two contract extensions by QCoal to continue to operate and maintain its Sonoma and Byerwen mines processing plants in Queensland. The three-year extensions will generate revenue of $166 million for Sedgman. The agreements replace and extend Sedgman’s existing agreements at the mines, continuing CIMIC Group’s long-standing relationship with QCoal. Shares in CIMIC Group’s (ASX:CIM) lose 0.3 per cent higher at $22.43.

Qantas (ASX:QAN) CEO Alan Joyce says in addition to job losses, they’ve reviewed their property footprint in order to consolidate. He says “the only antidote when you are faced with less revenue is to lower your costs.”The border openings delay resulted in a $100 million negative impact on earnings for the first quarter of FY21, and will have an impact on Q2 as well.

National Australia Bank Ltd (ASX:NAB) today announced that second half 2020 earnings will be reduced, amongst other things, by customer-related remediation matters of $380 million before tax.

Infigen (ASX:IFN) has entered into an agreement with TransGrid relating to Infigen’s dispatch of the 50MW/75MWh battery energy storage system that will be built at the Wallgrove substation in New South Wales.

IPO

Adore Beauty (ASX:ABY) debuted on the market today. It’s issue price was $6.75, it started trading at $7.40 and closed at $6.92.

Deterra Royalties (ASX:DRR) also started trading today. Started trading at $4.87 and closed at $4.60.

Also CleanSpace Holdings (ASX:CSX) also came on the market today. It was issued at $4.41, started trading $.6.65 and closed at $7.42. They design and manufacture respiratory protection equipment used in the industrial and healthcare sectors.

Best and worst performers of the day

The best performing sector was Energy adding 1.2 per cent while the worst performing sector was Materials, shedding almost 1 per cent.

The best performing stock in the S&P/ASX 200 was Bluescope Steel (ASX:BSL), rising 10.9 per cent to close at $15.92. Shares in Cooper Energy (ASX:COE) and Santos (ASX:STO) followed higher.

The worst performing stock in the S&P/ASX 200 was Iluka (ASX:ILU), dropping 48.3 per cent to close at $5.12. Shares in Regis Resources (ASX:RRL) and United Malt Group (ASX:UMG) followed lower.

Asian markets

Higher: Japan’s Nikkei has added 0.3 per cent, Hong Kong’s Hang Seng has gained 0.7 per cent and the Shanghai Composite has added 0.1 per cent.

Wall Street

Over the week Wall Street was mixed. The Dow gained 0.6 per cent, the S&P 500  lost 0.9 per cent and the NASDAQ  dropped 1.4 per cent.

Commodities and the dollar

Gold is trading at US$1,905 an ounce.
Iron ore price is 0.5 down at US$119.91.
Iron ore futures are pointing to a fall of 1.1 per cent.
Light crude is US$0.11 lower at US$40.53 a barrel.
One Australian dollar is buying 71.07US cents.