Back peddle Monday: Aus shares 0.16% lower at noon

Market Reports

by Jessica Amir

The Australian share market started the trading week in the red, taking the ASX200 back to where it was on Thursday.
We are still at record 10-year highs, but half of the sectors are back peddling.

CBA (ASX:CBA) is leading the large financial cap decliners and weighing down the market after it fell by about $1.40 or 2 per cent after announcing plans to demerge its wealth management and mortgage broking businesses, which generates over $500 million in net profit after tax, which accounts for 6 per cent of the group. If approved the demerger will be occur in 2019.

Debt purchasing company, Credit Corp (ASX:CCP) had a strong rally today, rising 7 per cent, recovering from an earlier fall in the session.

Iron ore price rose 0.7 per cent to US$65.34, while its futures point to a rise of 2.3 per cent with the big miners advancing.

The S&P/ASX 200 index is 10 points or 0.16 per cent lower at 6,215 points. On the futures market the SPI is 8 points lower.

Company news

Australian Pharmaceutical Industries (ASX:API) inked a deal to buy skin, laser and acne business, Clearskincare Clinics for $127.4 million, along with its 44 clinics. The deal will see API offer skin treatments, laser hair removal, and cosmetic injectables, becoming a leading Australian health and beauty business. API will fund the purchase over three years, initially buying over 50 per cent [50.1] (by 31 July 2018) and bumping it up to 100 per cent by September 2021. Clearskincare Clinics revenue has been growing strongly and in FY18 it’s tipped to be $40 million. As for FY19 EBITDA, that’s tipped to be $14 million. Shares in Australian Pharmaceutical Industries (ASX:API) are trading 5.9 per cent higher at $1.44

Shares in APN Outdoor (ASX:APO) have gone into lockdown (known as a trading halt) pending a further announcement about the proposed $1.1 billion takeover by French company JCDecaux, with the halt lifting on 27 June. At the same time, prior to going into a halt, two investment companies reduced their majority holding in the firm. Shares in X are trading up/down X per cent at $0.00. Last week, APN Outdoor Group (ASX:APO) jacked up its takeover offer for HT&E (ASX:HT1)’s Adshel businesses to $540. Shares in APN Outdoor (ASX:APO) last traded $6.40 on 22 June 2018.

Listed on ASX

Serko Limited (ASX:SKO) started trading today. Integrated, cloud-based corporate travel booking and expense management solution business opened at $2.87 and its trading at $2.87.

Best and worst performers

The best performing sector is energy adding 1.6 per cent, while the worst performing sector is healthcare, shedding 0.8 per cent.

The best performing stock in the S&P/ASX 200 is Credit Corp Group (ASX:CCP), rising 6.9 per cent to $18.67, followed by shares in Australian Pharmaceutical Industries Liited (ASX:API) and Northern Star Resources (ASX:NST).

The worst performing stock in the S&P/ASX 200 is Bellamy's Australia (ASX:BAL), dropping 3 per cent to $16.29, followed by shares in The A2 Milk Company (ASX:A2M) and Vocus Group Limited (ASX:VOC).

Asian markets

Japan’s Nikkei has lost 0.5 per cent, Hong Kong’s Hang Seng has added 0.06 per cent and the Shanghai Composite has gained 0.3 per cent.

Commodities and the dollar

Gold is trading at $US1,271 an ounce.
One Australian dollar is buying 74.26 US cents.

Cryptocurrencies

Bitcoin trades at US$6,172, Ethereum is at US$456 and EOS trades at US$7.93.