Health & Miners shine, IPO KTD up 80%: Aus shares close 0.7% higher

Market Reports

by Jessica Amir

The Australian share market broke its two-day losing streak and ended closer to our new 10-year high which we hit on 9 July (6,302).

Mostly all the sectors finished with a profit, but the Energy sector continued to lag, after the US crude oil price fell from its year-high.

At the closing bell the S&P/ASX 200 index closed 0.7 per cent up or 42 points higher, at 6,245.

In the afternoon, it was a race for the best performing sector, but health care overtook mining after Cochlear (ASX:COH) gained 1.4 per cent and CSL (ASX:CSL) added 1.3 per cent.

The mining sector came in a very close second best after BHP (ASX:BHP) rose 3.3 per cent. Overnight the iron ore price fell 0.8 per cent to $US64.07 and its futures are pointing to a rise of 0.43 per cent.

Futures market

Dow futures are suggesting a gain of 3 points.
And the ASX200 futures are eyeing a 34 point gain.

Value of trades

$5.3 billion on volume of 657 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited (ASX:BHP), CSL (ASX:CSL) and Commonwealth Bank of Australia (ASX:CBA).

Company news

Technology One (ASX:TNE) claimed the best top 200 performer post for the second day a row, after it extended its rally from yesterday when its shares gained 8.22 per cent. It comes as the software as a service company advised its net profit after tax is expected to grow between 10 to 15 per cent per annum. It also bolstered its accounting policies, moving to the International Financial Reporting Standard. Shares in Technology One (ASX:TNE) closed 6.3 per cent higher today at $5.04.

Mining giant, BHP (ASX:BHP) announced a record iron ore production rate and a 6 per cent lift in iron ore production for the 2018 June quarter. 

Fairfax Media (ASX:FXJ) has announced it inked a deal with News Corp Australia that will see the publishers use each other’s printing networks, which should save Fairfax $15 million a year.

Australian gold miner, Saracen (ASX:SAR) had strong run in its shares just a day after announcing record gold production for the financial year ending June 2018, with gold reaching over 316,000 ounces. It also rose its 2019 financial year guidance by up to 45,000 ounces.

Dairy company, Bega Cheese (ASX:BGA) is planning to snap up the Koroit dairy processing plant from Saputo Dairy Australia for $250 million.

Northern Star Resources (ASX:NST) has announced record gold production in the June quarter of almost 184,000 ounces, well ahead of its target.

Navitas (ASX:NVT) advised it will close some of its careers and industry divisions following a review, resulting in a one off $130 million charge (post-tax) for the company’s 2018 financial year.

In IPOs

Manufacturer, packer and exporter of dairy and nutrition products, Keytone Dairy Corporation Limited (ASX:KTD) started trading today rising 80 per cent. It comes after it floated with an issue price of $0.20 opened at $0.26 and closed at $0.36.

Best and worst performers of the day

The best performing sector was Health Care adding 1.3 per cent while the worst performing sector was Energy, falling 0.6 per cent.

The best performing stock in the S&P/ASX 200 was Technology One Limited (ASX:TNE), rising 6.3 per cent to close at $5.04. Shares in Afterpay Touch Group Limited (ASX:APT) and Bega Cheese Limited (ASX:BGA) followed higher.

The worst performing stock in the S&P/ASX 200 was Navitas Limited (ASX:NVT), dropping 3.3 per cent to close at $4.09. Shares in Beach Energy Limited (ASX:BPT) and Oil Search Limited (ASX:OSH) followed lower.

Asian markets

Mixed at our market close: Japan’s Nikkei has added 0.6 per cent, Hong Kong’s Hang Seng has shed 0.3 per cent and the Shanghai Composite has lost 0.1 per cent.

Commodities and the dollar

Gold is trading at $US1,224 an ounce.
Light crude is $0.39 lower at $US66.68 barrel.
One Australian dollar is buying 73.53 US cents.

Cryptocurrencies

Some of the most traded cryptocurrencies have continued to push higher. Bitcoin has gained 11.2 per cent to US$7,459, Ethereum has gained about 6.3 per cent to US$505 and EOS has gained about 14 per cent to US$9.02