Sep qtr GDP falls 1.9%, ProMedicus drops 6%: ASX down 0.8% at noon

Market Reports

by Lauren Evans

The Australian sharemarket opened lower and has fallen further in the late morning. At noon, the S&P/ASX 200 is 0.8 per cent or 54.1 points lower at 7201.9. The SPI futures are pointing to a fall of 43 points.

All sectors are in the red, except health care, up 0.2 per cent. Consumer staples are down 1.9 per cent as the worst performer, followed by technology, down 1.5 per cent, and utilities, down 1.4 per cent.

The worst-performing stock in the S&P/ASX 200 is Chalice Mining (ASX:CHN), trading 6.7 per cent lower. Health imaging company ProMedicus (ASX:PME) is down 6.3 per cent, despite having  released no company news and chemical manufacturer Incitec Pivot (ASX:IPL) is down 2.5 per cent. 

Buy now, pay later giant's Afterpay (ASX:APT) and Zip Co (ASX:Z1P) are down 1.8 and 3.3 per cent. The major banks are also lower, led by ANZ (ASX:ANZ) down 1.2 per cent. 

Travel stocks are weighing amid Covid-19 concerns around the globe. Flight Centre (ASX:FLT) is down 2.8 per cent, Webjet (ASX:WEB) is down 3.7 per cent and Corporate Travel Management (ASX:CTD) is down 3 per cent.

Domino's Pizza (ASX:DMP) is down 3.2 per cent, despite a positive couple of days, while supermarket Woolworths (ASX:WOW) is down 2.7 per cent. Automotive company GUD (ASX:GUD) is down 6.7 per cent following the completion of the institutional placement to fund the acquisition of AutoPacfic.

In headlines this morning, metal detection and wireless communication business Codan (ASX:CDA) is down 1.9 per cent following its UK acquisition.

Local economic news

The Australian Bureau of Statistics unveiled the September quarter GDP figures. The Australian economy fell 1.9 per cent in seasonally adjusted chain volume measures. In nominal terms, GDP fell 0.6 per cent. The terms of trade rose 0.4 per cent and household saving ratio increased to 19.8 per cent from 11.8 per cent.

IHS Markit and Australian Industry Group slated the purchasing managers figures in the manufacturing sector as of September 2021.

The global economy expanded for a fourteenth straight month in August. The rate of expansion was the slowest since January.

Both manufacturing and service sectors contributed to the easing of growth as Covid-19 cases rose around the world and induced further caution. Impeded by sustained supply-side constraints, global manufacturing growth fell to the lowest in 14 months.

CoreLogic also released its national home value index for November. Australian housing values were 1.3 per cent higher in November, marking the 14th consecutive month where CoreLogic’s national home value index recorded positive value growth.

The November update takes national housing values 22.2 per cent higher over the past 12 months, adding approximately $126,700 to the median value of an Australian home. Although values are continuing to rise, the November result was the softest outcome since January when values rose 0.9 per cent.

Company news

Metal detection and wireless communication business Codan (ASX:CDA) has planned to purchase the UK-based company, Broadcast Wireless Systems (BWS) for an upfront payment of $3.7 million.

Charter Hall Retail REIT (ASX:CQR) is set to acquire a 49 interest in 20 Ampol Fuel & Convenience retail centres for $50.5 million on a 5 cap rate.

Casino operator Crown Resorts (ASX:CWN) has officially appointed Dr Ziggy Switkowski as its new chairman following the receipt of all required regulatory approvals.

IPO

Cosmos Exploration (ASX:C1X) has listed on the ASX today. Their shares issued at $0.20, started trading at $0.18 and are currently at $0.1825.

Best and worst performers

The best-performing sector is Health Care, up 0.2 per cent. The worst-performing sector is Consumer Staples, down 1.9 per cent.

The best-performing stock in the S&P/ASX 200 is South32 (ASX:S32), trading 1.98 per cent higher at $3.60. It is followed by shares in GrainCorp (ASX:GNC) and Waypoint REIT (ASX:WPR).

The worst-performing stock in the S&P/ASX 200 is Chalice Mining (ASX:CHN), trading 6.7 per cent lower at $9.30. It is followed by shares in Pro Medicus (ASX:PME) and Incitec Pivot (ASX:IPL).

Commodities and the dollar

Gold is trading at US$1775.88 an ounce.
Iron ore is 0.2 per cent higher at US$100.10 a ton.
Iron ore futures are pointing to a rise of 1.62 per cent.
One Australian dollar is buying 71.35 US cents.

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