Market Wrap: Aus shares close 1% lower

Market Reports

by Carolyn Herbert

It was a disappointing end to the trading session for the Australian share market today, with the local bourse plunging on the open and failing to surface at all during the session, before closing 1.02 per cent lower. The big four banks proved to be the biggest drag on the market, with NAB leading the losses. The materials space also had a poor session with losses across the board amongst the big miners and even the gold stocks couldn’t take advantage of their safe haven status.

The S&P/ASX 200 index closed 54 points lower to finish at 5,228.

The value of trades was $4.3 billion on volume of 667 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia (ASX:CBA), BHP Billiton Limited (ASX:BHP) and Westpac Banking Corporation (ASX:WBC).

On the futures market the SPI is 72 points down.

Economic news

The Reserve Bank of Australia has once again kept interest rates on hold at a record low of 1.75 per cent. In its statement of monetary policy, the central bank citing economic uncertainty following the UK referendum as one of the reasons why it kept rates on hold.

Company news

Australian Vintage Limited (ASX:AVG) says that recent unfavorable movement in the GBP following Brexit means the company will need to account for an unforeseen unrealized foreign exchange loss of approximately $1 million after tax at 30 June 2016. It says this unrealized loss is based on the exchange rate impact on the company’s UK based working capital. AVL is currently in blackout until it announces its detailed financial accounts to the market on Wednesday the 24th of August. Shares in Australian Vintage closed 7.14 per cent lower at $0.52.

Jumbo Interactive Ltd (ASX:JIN) is expecting a significant increase in profit, driven by growing customer numbers and a good run of Jackpots.

Alliance Aviation Services (ASX:AQZ) has signed a 3-year contract extension with mining company, South32.

Hong Kong-based Animoca Brands Corporation Ltd (ASX:AB1), will acquire a mobile games developer based in Finland.

Best and worst performers

The best performing sector was Utilities adding 0.2 per cent to close at 7,745. The worst performing sector was Consumer Discretionaries, losing 1.9 per cent to close at 2,039 points.

The best performing stock in the S&P/ASX 200 was APN Outdoor, rising 4.61 per cent to close at $7.26. Shares in Macquarie Atlas Roads and Western Areas also closed higher.

The worst performing stock was Mantra, dropping 7.65 per cent to close at $3.14. Shares in Metcash and Ardent Leisure also closed lower.

Commodities and the dollar

Gold is trading at $US1,343 an ounce.
Light crude is $0.23 lower at $US48.76 a barrel.
The Australian dollar is buying $US0.7516.


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