Oil slides, Technology One jumps: Aus shares close 0.6% lower

Market Reports

by Jessica Amir

The Australian share market continued its slide from yesterday with all of our sectors making a loss. At the closing bell the S&P/ASX 200 index closed 0.6 per cent or 38 points lower at 6,204. But we are still holding onto 10-year highs.

From the outset we had mostly red Wall Street leads after Netflix’s result disappointed. Meantime, the US crude oil price fell 4 per cent earlier, after the US government spooked the market about removing Iranian oil barrels from the market.

That saw Energy claim the worst performing sector today with Woodside Petroleum (ASX:WPL) losing 2.4 per cent, while Whitehaven Coal (ASX:WHC) clawed back some of its earlier losses, closing 1.5 per cent lower after gaining over 85 per cent year-on-year.

We did see some diamonds in the rough though with Praemium (ASX:PPS) gaining over 3 per cent and CBA (ASX:CBA) and NAB (ASX:NAB) gaining over 0.2 per cent . 

Futures market

Dow futures are suggesting a rise of 5 points up.
And the ASX200 futures are eyeing a 42 point fall.

Value of trades

$4.6 billion on volume of 591 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA) and ANZ (ASX:ANZ).

Economic news

The RBA advised says it’s concerned about the direction of international trade policy in the US and its effect on the global outlook, which has intensified over the prior month. In the RBA meeting minutes, the board also advised in housing prices had fallen moderately in Sydney and Melbourne, following significant growth over preceding years. Meantime, it also mentioned inflation remained low, reflecting low growth in labour costs and strong retail competition. And these were just some of the reasons interest rates were kept on hold earlier in month.

Company news

Shares in Technology One (ASX:TNE) shot to the top as a top 200 performer today after the software as a service company advised changes to its accounting policies, moving to the International Financial Reporting Standard. It advised its net profit after tax is expected to grow between 10 to 15 per cent per annum going forward. Shares in Technology One (ASX:TNE) closed 8.22 per cent higher at $4.74, but they have been sold off of late. 

Mining giant, Rio Tinto (ASX:RIO) saw its iron Pilbara ore shipments jump 14 per cent in the second quarter of 2018, compared than the prior corresponding period, really on the back of better weather and improved productivity.

Fund manager Perpetual (ASX:PPT) advised its funds under management hit $31 billion after rising by $6 million in fourth quarter.

Ahead of the National Australia Bank (ASX:NAB) divesting its wealth division, it’s appointed Geoff Lloyd as CEO of its wealth management business, MLC. Geoff will take the role from September this year, after working as the CEO and Managing Director of financial services group Perpetual (ASX:PPT).

Oil Search (ASX:OSH) saw its total revenue slide 11 per cent on the first quarter to $263 million, which was effected by the PNG earthquake.

Waste management services and recycling company, Bingo Industries (ASX:BIN) has quashed media speculation, saying the majority shareholders (the Tartak family, including the CEO Daniel Tartak who owns 17 per cent) are not selling down their shares after the release from escrow.

The Tasmanian government has approved the restocking of Tassal’s (ASX:TGR) Franklin lease in Macquarie Harbour. It’s the salmon farmer’s largest lease in the harbour.

Best and worst performers of the day

The best performing sectors were financials losing 0.1 per cent, neck on neck with industrials.Industrials down 0.1 per cent. But the worst performing energy sector, down the most, by 2.2 per cent.

The best performing stock in the S&P/ASX 200 was Technology One Limited (ASX:TNE), rising 8.22 per cent to close at $4.74. Shares in Automotive Holdings Group Limited (ASX:AHG) and Seven West Media Limited (ASX:SWM) followed higher.

The worst performing stock in the S&P/ASX 200 was Southern Cross Media Group Limited (ASX: XL), dropping 3.5 per cent to close at $1.23. Shares in Wisetech Global Limited (ASX:WTC) and Worleyparsons (ASX:WOR) followed lower.

Asian markets

Mixed :Japan’s Nikkei has added 0.6 per cent, Hong Kong’s Hang Seng has shed 1.2 per cent and the Shanghai Composite has lost 1.1 per cent.

Commodities and the dollar

Gold is trading at $US1,242 an ounce
The iron ore rice gained 0.8 per cent to US$64.56, while its futures are eyeing a gain of 0.21 per cent.
Light crude is $2.85 lower at $US67.10 barrel.
One Australian dollar is buying 74.33 US cents.


Some of the most traded cryptocurrencies are trading higher. Bitcoin has gained 5.2 per cent to US$6,707, Ethereum has added about 5.3 per cent to US$475 and EOS has gained about 7.2 per cent to US$7.87.

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