Out of puff on Friday: Aus shares close 0.9% higher on week

Market Reports

by Jessica Amir

The Australian share market closed lower on Friday but 0.9 per cent higher over the week. From the get go, we had mixed leads, after tech stocks slipped on Wall Street overnight. And back home, only three sectors closed in the green, the discretionary, energy and staple sectors, after the ASX200 is in the midst of being re-shuffled, while some large companies succumb to June 30 selling.

AMP (ASX:AMP) lost its place among the top 20 biggest companies and was replaced by Amcor (ASX:AMC).

Cochlear (ASX:COH) gained a spot in the top 50, replacing Incitec Pivot (ASX:IPL). While in the top 100 players, GrainCorp (ASX:GNC) lost its footing and was replaced by Whitehaven Coal (ASX:WHC).

While on the top 200 light, Afterpay Touch (ASX:APT) earned a spot, along with Kidman Resources (ASX:KDR).

Meantime, oil and energy stocks were boosted again after the crude oil price rose above OPEC target price on the back of Venezuelan supply trouble. But miners fell after the iron ore future price is suggesting a dip of 1.40 per cent.

At the closing bell, the S&P/ASX 200 index closed 12.10 points lower, or 0.20 per cent lower, to finish at 6,045.20 points. Over the week, we finished 54.80 points higher, or 0.91 per cent higher.

The futures market

The Dow Jones Futures are suggesting a fall of 74 points.
The S&P/ASX 200 Futures are suggesting a fall of 5 points.

The value of trade was $4.0 billion on volume of 551 million shares at the close of trade. The top three stocks by value were BHP Billiton (ASX:BHP), Aurelia Metals (ASX:AMI) and Rio Tinto (ASX:RIO).

Company news

Canada has cleared a major hurdle in legalising recreational marijuana, after its Senate voted to legalised it, putting the country on track to becoming the first group of seven nations to allow use of the drug. And as such an ASX listed company focused on this space, MMJ PhyoTech (ASX:MMJ) says it’s pleased with progress and looks forward to the bill (Bill C-45) being passed through the next steps and passed into law later this year. Shares in MMJ PhyoTech (ASX:MMJ) closed1.47 per cent lower at $0.34.

Mineral Resources (ASX:MIN) confirmed its ore reserves are sufficient enough to ensure it delivers its Pilbara infrastructure project, which it says forms a key part of its offering for the next 30 plus years. Further to that, the company also reached an agreement with Atlas Iron (ASX:AGO) which allows AGO to explore takeover talks with other parties. Fortescue Metals (ASX:FMG) has snapped up 20 per cent of Atlas Iron (ASX:AGO). Shares in Mineral Resources (ASX:MIN) closed 1.80 per cent lower at $18.52.

Tabcorp (ASX:TAH) confirmed it’s now in talks with its partner, News UK, about the proposed exit of UK wagering and gaming business, Sun Bets. Although it has not reached an agreement it advised it’s started collectively talking to Sun Bets employees about the proposal, which is in line with UK employment law obligations.

Retail Food Group (ASX:RFG) will be ousted from the top 200 list of ASX companies, according to the S&P/ASX 200 index quarterly rebalance. The rebalance for the ASX 200 is effective on 18 June but that didn’t stop RFG shares hitting a new all-time low today. 

Bubs Australia (ASX:BUB) has entered into a binding manufacturing agreement with Australia Deloraine Dairy as a critical step toward achieving China Food and Drug Administration (CFDA) registration, to produce infant formula products.

Software logistics company, WiseTech Global (ASX:WTC), has acquired Canadian customs management solution provider, Fenix Data Systems for $2.5 million upfront, plus a potential earn-outs of up to $800,000.

Immuno-oncology company, Imugene (ASX:IMU) has responded to the ASX’s query and its share rose about 3.6 per cent today. Just a day after announcing plans to raise over $20 million which will expand its clinical program for up to three years.

Best and worst performers of the day

The best-performing sector was Consumer Discretionary, which added 0.44 per cent. The worst-performing sector was Industrials, which shed 0.99 per cent.

The best-performing stock in the S&P/ASX 200 was Nanosonics Limited (ASX:NAN), which rose 5.86 per cent to $3.07. Shares in Domino Pizza (ASX:DMP) and Seven West Media (ASX:SWM) followed higher.

The worst-performing stock in the S&P/ASX 200 was Retail Food Group (ASX:RFG), which fell 8.96 per cent to $0.61. Shares in Aurizon Holdings (ASX:AZJ) and Asaleo Care Limited (ASX:AHY) followed lower.

Asian markets

Japan's Nikkei has lost 0.50 per cent, Hong Kong's Hang Seng has lost 1.45 per cent and China's Shanghai Composite has lost 1.45 per cent.

Wall Street

Wrapped up the four trading days this week higher: The Dow Jones gained 2.40 per cent, the S&P gained 1.29 per cent and the Nasdaq gained 1.06 per cent.

Commodities and the dollar

Gold is trading at US$1296.30 an ounce.
Light crude is trading $1.22 higher at US$65.95 a barrel.
One Australian dollar is buying 76.01 US cents.

Cryptocurrencies

Bitcoin is trading 0.95 per cent lower at US$7,636.60, Ethereum is trading 1.10 per cent lower at US$604.12 and EOS is trading 0.04 per cent higher at US$13.93.