RBA bulletin weighs: Aus shares 0.3% lower at noon

Market Reports

by Jessica Amir

The Australian share market wiped-out about half of yesterday’s gains and is tracking 0.3 per cent lower at noon with the Consumer Discretionary sector leading most of the market lower.

Materials are up the most, (along with Healthcare) up about 1 per cent with Rio (ASX:RIO) rising 3.3 per cent after announcing a massive buyback (see our Company News section for more). 

Broker moves

Citi has classed Goodman Group (ASX:GMG) as a buy, with a price target of $11.90 with Citi saying, while the real estate sector is well-seasoned, the outlook for the logistics sector ‘is as bright as ever, driven by structural factors, demand in e-commerce, constant supply chain evolution and automation’. Goodman Group trades 1.3 per net lower at noon,. 

The S&P/ASX 200 index is 0.3 per cent or 21 points down at 6,169 at noon. On the futures market the SPI is 23 points higher.

Economic news

The RBA published their monthly bulletin highlighting the risks the Consumer Discretionary sector is facing amid increased competition, slow growth in consumer spending, plus the changes in consumer preferences. The RBA also highlighted the long-term six-month average changes are astronomical, with online sales soaring since 2016 and in-store sales tracking lower from 2014 to now.

Company news

Building material company that rivals Boral (ASX:BLD) and CSR, Brickworks (ASX:BKW) reported a 6 per cent fall in its net profit after tax to $175.4 million, for the financial year ending 31 July 2018. It comes after the business was impacted by a $7.1 million significant item in restructuring and commissioning costs for its building products business. Shares in Brickworks (ASX:BKW) are trading 4.6 per cent lower at $16.31 at noon.

Sydney Airport (ASX:SYD) reported a 3.2 per cent lift in total passenger numbers year to date (to August) with international passenger number growing the most (5.1 per cent compared to the prior corresponding period). As for the month of August, Indonesian visitors rose the most (almost 17 per cent), followed by Japanese visitors, followed by Indian arrivals (which saw record growth). Shares in Sydney Airport (ASX:SYD) are trading 1.5 per cent lower at $7.01 at noon.

Best and worst performers

The best performing sector is S&P/ASX Health Care adding 1 per cent, while the worst performing sector is S&P/ASX Consumer Discretionary, shedding 1.4 per cent.

The best performing stock in the S&P/ASX 200 is Northern Star Resources (ASX:NST), rising 6.4 per cent to $9.03, followed by shares in Galaxy Resources Limited (ASX:GXY) and Evolution Mining Limited (ASX:EVN).

The worst performing stock in the S&P/ASX 200 is Washington H Soul Pattinson & Company Limited (ASX:SOL), dropping 8.1 per cent to $23.58, followed by shares in Brickworks limited (ASX:BKW) and Eclipx Group Limited (ASX:ECX).

Asian markets

Japan’s Nikkei has added 0.2 per cent, Hong Kong’s Hang Seng has added 0.5 per cent and the Shanghai Composite has gained 0.2 per cent.

Commodities and the dollar

Gold is trading at US$1,206 an ounce.
Iron ore price fell 0.5 per cent to US$69.46 and its futures are pointing to a fall of 1.5 per cent.
One Australian dollar is buying 72.61US cents.

Cryptocurrencies

Bitcoin has gained 1.1 per cent to US$6,425, Ethereum has gained about 0.2 per cent to US$211 and EOS has gained about 2.9 per cent to US$5.25