China implements new Tarrifs: Aus shares close 0.91% higher

Market Reports

by Jessica Amir

The Australian share market set a brand new 10 year high after making gains for two straight days. The S&P/ASX 200 index rose 0.91 per cent or 57 points to 6,272, and over the week we rose 1.24 per cent/78 points.

Trump’s news tariffs on US$34 billion of Chinese goods are due to come into effect at Midnight (Washington Time).  And after our stock market closed today, China implemented new tariffs on US products in response. China’s ministry commerce says, it was forced to respond after the US launched the 'largest trade war’ in our economic history.

As for our sectors today all gained, Telcos took the cake as the best performer after the sector rose for the fifth straight day after Telstra (ASX:TLS) continued its four-day rally.

Energy stocks also performed well with Origin Energy (ASX:ORG) trading near its one-year-high after it gained 2.6 per cent, while Santos (ASX:STO) rose 1.7 per cent, despite the oil price dipping, on rising US supply.

Futures market

The Dow futures are suggesting a rise of 66 points.
And the ASX200 futures are eyeing a 59 point gain.

Value of trades

$5.8 billion on volume of 692 million shares at the close of trade. The top three stocks by value were Rio (ASX:RIO), Commonwealth Bank of Australia (ASX:CBA) and BHP Billiton Limited (ASX:BHP).

Company news 

The Commonwealth Bank of Australia (ASX:CBA) has entered an Enforceable Undertaking (EU) on government concerns that a number of customers may have received personal advice in the sale Essential Super in branch. CBA withdrew the sale of Essential Super from branches in October 2017 but it entered into the Enforceable Undertaking (EU) with Australian Securities and Investments Commission (ASIC). Shares in CBA (ASX:CBA) closed 1.63 per cent higher at $75.67.

St Barbara (ASX:SBM) saw a stellar rally today, rising 7.5 per cent, on the back of record June quarter and full year gold production, with full year gold produced rising 6 per cent, going over 400,000 ounces in a year, for the first time.

Agribusiness, Elders (ASX:ELD) shares hit a week low, despite the company saying it’s on track for earnings (EBIT) growth of five to 10 per cent, right through to the agriculture cycle, to 2020. And despite dry weather conditions and declining cattle prices, its earnings before interest and tax (EBIT) should be between $70 million and $74 million, for the 12 months to 30 September 2018, compared to FY17’s EBIT of $71 million. It also advised its underlying net profit after tax (NPAT) should be higher than the prior corresponding period’s $58.4 million and it should sit between $59 to $63 million.

And in small caps, Zinc, lead explorer, Symbol Mining (ASX:SL1) has seen a healthy rally with its shares jumping 24 per cent, on the back of having its mining lease approved, and it commencing mining at its zinc project.

Paradigm Biopharmaceuticals (ASX:PAR) shares hit a fresh one year high today rising 15 per cent.

IPOs

Food and Agriculture business, Wide Open Agriculture (ASX:WOA) started trading today after it floated with an issue price of $0.20, opened at $0.21 and it closed at $0.20.

Best and worst performers of the day

The best performing sector was telcos adding 1.4 per cent while the worst performing sector was utilities, adding 0.3 per cent.

The best performing stock in the S&P/ASX 200 was St Barbara Limited (ASX:SBM), rising 7.5 per cent to close at $5.14. Shares in Nine Entertainment Holdings Limited (ASX:NEC) and Bluescope Steel Limited (ASX:BSL) followed higher.

The worst performing stock in the S&P/ASX 200 was Inghams Group Limited (ASX:ING), dropping 3.3 per cent to close at $3.82. Shares in Appen Limited (ASX:APX) and Bellamy's Australia Limited (ASX:BAL) followed lower.

Asian markets

Higher at the minute: Japan’s Nikkei has added 1.3 per cent, Hong Kong’s Hang Seng has added 1.1 per cent and the Shanghai Composite has gained 1.3 per cent.

Wall Street

Wrapped up our four trading days this week: higher with the The Dow Jones adding 0.4 per cent, The S&P 500 adding 0.7 per cent and the tech heavy Nasdaq adding 0.1 per cent and the 100 index gaining 0.9 per cent.

Commodities and the dollar

Gold is trading at $US1,256 an ounce.
Iron ore price fell about 2 per cent to US$63.14 and its futures are eyeing a rise of 0.76 per cent.
Light crude is $1.02 lower at $US73.12 barrel.
One Australian dollar is buying 74.05 US cents.

Cryptocurrencies

Some of the most traded are trading lower: Bitcoin has fallen 1.03 per cent to US$6,595, Ethereum has fallen about 1.2 per cent to US$469 and EOS has shed about 3 per cent to US$8.69