China drinking less Treasury Wine: Aus shares close 0.2% lower

Market Reports

by Jessica Amir

The Australian share market had a bit of sour day, losing 0.2 per cent but we will have held onto one month highs.

We had positive US leads at the open, made a minor gain, then quickly fell in the red, Treasury Wine (ASX:TWE) seeing heavy selling after it confirmed it is seeing a slowdown of its exports to China base on demand, while Westpac Bank (ASX:WBC) also saw a fair bit of selling.

As for the sector, miners and oil companies, telcos and discretionary players finished in the black. Lithium players, such as Galaxy Resources (ASX:GXY) glistened, adding over 8 per cent while Orocobre (ASX:ORE) closely followed, up 7 per cent.

As for the mining heavyweights, Rio Tinto (ASX:RIO) gained over 2 per cent, while BHP (ASX:BHP) rose over 1 per cent after the iron ore price jumped 1.1 per cent to US$68.03 over night. But its future are down 0.4 per cent.

At the closing bell the S&P/ASX 200 index closed 13 points, or 0.2 per cent lower to finish at 6,094.

Futures

The Dow futures are suggesting a fall of 24 points up.
And the ASX200 futures are eyeing a 4 point fall.

Value of trades 

$5.9 billion on volume of 689 million shares at the close of trade. The top three stocks by value were Westpac (ASX:WBC), Treasury Wine (ASX:TWE) and BHP Billiton Limited (ASX:BHP).

Economic news

The unemployment rate bumped up by 0.1 per cent to 5.6 per cent, surprising economists and traders who expected it to remain on hold at 5.5 per cent.

The number of employed people increased by almost 23,000 jobs in April 2018, in seasonally adjusted terms, beating the 20,000 jobs expected to be added.

Company news

Specialty Fashion Group (ASX:SFH) chairperson and independent non-executive director, Anne McDonald snapped up an extra $12,950 shares in the company today and yesterday. It follows Noni B (ASX:NBL) announcing yesterday it successfully raised $37.8 million via an institutional capital raising, with monies raised to be put towards the purchase of Specialty Fashion Group by Noni B. Shares in Specialty Fashion Group (ASX:SFH) closed 6.9 per cent higher at $0.70 while Noni B (ASX:NBL) closed 4.8 per cent higher at $2.85.

Lithium developer Kidman Resources (ASX:KDR) has entered a binding agreement to provide lithium hydroxide to electric vehicle company Tesla. The 3-year fixed-price take-or-pay agreement has two 3-year term options.

US private firm Harbour Energy has revised its terms and submitted a binding but conditional proposal for the takeover of Santos (ASX:STO).

Australia's biggest cement company, Adelaide Brighton (ASX:ABC) is looking for a new chief executive after current boss Martin Brydon announced he is to retire.

Rural Funds Management (ASX:RFM) - manager for the Rural Funds Group (ASX:RFF), has entered into a contract to acquire a cattle property in central Queensland. The purchase price of $15.7m will be debt funded.

And a special mention to, Star Combo Pharma (ASX:S66) with its shares jumping 27 per cent today after gaining about 60 per cent yesterday after they listed on the ASX with an issue price of $0.50. And we interviewed Chairman and CEO so stay tuned for FNN for the interview coming soon.

Best and worst performers of the day

The best performing sector was materials adding 0.9 per cent while the worst performing sector was industrials, shedding 1.2 per cent.

The best performing stock in the S&P/ASX 200 was Galaxy Resources Limited (ASX:GXY), rising 8.4 per cent to close at $3.37. Shares in Orocobre Limited (ASX:ORE) and Syrah Resources Limited (ASX:SYR) followed higher.

The worst performing stock in the S&P/ASX 200 was Treasury Wine Estates (ASX:TWE), dropping 6.2 per cent to close at $16.90. Shares in Bellamy's Australia (ASX:BAL) and Westpac Banking Corporation (ASX:WBC) followed lower.

Asian markets

Japan’s Nikkei has added 0.6 per cent, Hong Kong’s Hang Seng has lost 0.4 per cent and the Shanghai Composite has shed 0.4 per cent.

Commodities and the dollar

Gold is trading at $US1,290 an ounce.
Light crude is $0.25 up at $US71.62 barrel.
One Australian dollar is buying 75.32 US cents.

Cryptocurrencies

Bitcoin trades at US$8,368, Ethereum is at US$712 and EOS has gained about 10 per cent to US$13.68