Back to June levels: Aus shares close 0.76% lower

Market Reports

by Jessica Amir

The Australian share market erased all of Tuesday’s (September 11) gains, taking the local bourse back to where it sat on 20 June 2018 with Utilities, Staples, Healthcare and Financials losing over 1 per cent.

We saw the Materials sector flex its muscle after metals rallied on trade talk hopes with the likes of Rio Tinto (ASX:RIO) gaining 1.7 per cent.

We saw Myer (ASX:MYR) upgraded by UBS from a sell, to a neutral position and Bell Potter earmarked the stock as a sell though and it gained 37.5 per cent.

Bell Potter reiterated their buy position for the software company, Citadel Group (ASX:CGL) with a price target of $9.00 (12 months). 

Goodman Group (ASX:GMG) was marked as a buy by Citi.

At the closing bell the S&P/ASX 200 index closed 47 points lower, or 0.8 per cent lower to finish at 6,129.

Futures market

Dow futures are suggesting a fall of 29 points.
S&P 500 futures are eyeing a dip of 4 points.
The Nasdaq futures are eyeing fall of 14 points.
And the ASX200 futures are eyeing a 3 point rise tomorrow.

Top three most traded stocks

At the close of trade, the top three stocks by value were BHP Billiton Limited (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA) and South32 (ASX:S32).

Economic news

The unemployment rate remained steady at 5.3 per cent in line with consensus and market forecasts, while the seasonally adjusted number of employed Australian rose by 44,000 people in August, beating forecasts.

Company news

WAM Capital (ASX:WAM) has made an off-market takeover bid to Wealth Defender Equities (ASX:WDE) an investment company investing, with the offer booked to close on 14 October 2018. The offer is for 1 WAM share for every 2.5 WDE shares. Shares in WAM Capital (ASX:WAM) closed 0.4 per cent lower at $2.47.

Propertylink Group (ASX:PLG) made a non-binding and indicative takeover proposal to buy all of the outstanding shares in Centuria Industrial REIT (ASX:CIP) for $755 million (including $0.33 cash per CIP share and for 2.5327 PLG)

BHP Billiton (ASX:BHP) has lost two of its company secretaries effective from today with Kate Griffiths and Megan Pepper resigning from their roles

Buy now pay later company, Zip Co (ASX:Z1P) announced a partnership with Target, to offer Zip’s interest-free payments to its customers. As part of the Wesfarmers (ASX:WES) group, Target operates a network of 303 stores.

Capilano Honey (ASX:CZZ) advised that Capilano Beekeepers will support the takeover with BidCo proposing to buy 100 per cent of the shares in Capilano by way of a scheme of arrangement.

IPOs

Mining exploration, Aldoro Resources Limited (ASX ARN). It issued share at a price of 20 cents, opened at 21 cents and it closed at 21.5 cents.

Best and worst performers of the day

The best performing sector was Materials, adding 0.7 per cent, while the worst performing sector was Utilities, shedding 2.2 per cent.

The best performing stock in the S&P/ASX 200 was Syrah Resources (ASX:SYR), rising 4.9 per cent to close at $2.36. Shares in Ausdrill (ASX:ASL) and Western Areas (ASX:WSA) followed higher.

The worst performing stock in the S&P/ASX 200 was G8 Education (ASX:GEM), dropping 4.9 per cent to close at $1.94. Shares in McMillan Shakespeare (ASX:MMS) and IPH (ASX:IPH) followed lower.

Asian markets

Higher:Japan’s Nikkei has added 1 per cent, Hong Kong’s Hang Seng has added 1.6 per cent and the Shanghai Composite has gained 0.7 per cent.

Commodities and the dollar

Gold is trading at US$1,204 an ounce.
Iron ore price rose 0.3 per cent to US$67.86. Its futures are pointing to a rise of 2.8 per cent.
Light crude is US$1.02 up at US$70.06 barrel.
One Australian dollar is buying 71.8 US cents.

Cryptocurrencies

Some of the most traded cryptocurrencies are trading higher. Bitcoin has gained 1.7 per cent to US$6,408, Ethereum has gained 7.3 per cent to US$189 and EOS has gained 1.8 per cent to US$4.95, in the last 24 hours.