Discretionary & financials weigh: Aus shares close 0.4% lower on week

Market Reports

by Jessica Amir

The Australian share market continued its three-day rally rising 0.2 per cent today, but it wasn’t enough to shake off the earlier losses in the week and we closed 0.4 per cent lower, over the five days..

This week, the Consumer Discretionary sector made the most losses with Aristocrat (ASX:ALL) losing steam, but over the past three years has it outperformed the average for the sector.

Financials also weighted on the market this week with with the Banking Royal Commission taking its toll.

As for the risers, Energy and Materials s gained the most on the back of the oil price rallying as well as the Aluminium price.

At the closing bell the S&P/ASX 200 index closed 9 points higher, or 0.2 per cent higher, to finish at 6186. Over the week it closed 22 points lower or 0.4 per cent lower.

Futures market

Dow futures are suggesting a rise of 29 points.
S&P 500 futures are eyeing a rise of 3 points.
The Nasdaq futures are eyeing lift of 8 points.
And the ASX200 futures are eyeing a 4 point fall Monday morning

Most traded stocks

The top three stocks by value were BHP Billiton Limited (ASX:BHP), CSL (ASX:CSL) and Westpac (ASX:WBC).

Economic news

AIG reported that the construction industry slowed for the first time in 20 months, according to AIG’s Construction Index which fell 2.5 points to 49.3 in September.

Australian retail turnover rose 0.3 per cent in August 2018, seasonally adjusted, beating the 0.2 per cent consensus expected. Cafes, restaurants and takeaway food services are leading the rises. Food retail was relatively unchanged. Online retail turnover contributed 5.6 per cent to total retail turnover, a rise from 5.5 per cent in July 2018.

Company news

Shipbuilder and global defence contractor Austal (ASX:ASB) has been awarded a US$16.4 million contract today from the United States Department of Defence. The order provides engineering and management services support for the Independence Class Littoral Combat Ship , the USS Charleston. The ship was originally designed in Austal’s Centre for excellence in maritime design in Henderson, Western Australia, and built at Austal facilities in Mobile, Alabama. Shares in Austal closed flat at $1.99.

Dexus (ASX:DXS) is extending its presence in the healthcare sector after conditionally agreeing to buy an initial 28.5 per cent interest in Heathley for $11.3 million, with an option to acquire a further 21.5 per cent interest in the future.

Beach Energy (ASX:BPT) has agreed to sell 40 per cent of Victorian Otway for $344 million. As a result, it downgraded its guidance levels following saying its earnings (EBITDA) FY19 guidance will drop from the range of $1.1 billion to $1.2 billion to $1.05 billion to $1.15 billion. Its upper production FY19 guidance limit will also drop from 28 to 27 Million Barrels of Oil Equivalent (MMboe) if the sale of its 40 per cent stake goes ahead.

And Magnis Resources (ASX:MNS), to be renamed Magnis Energy is working to accelerate development of its New York Gigafactory. Work on design and process engineering has already started, along with site preparations following the successful move of the battery manufacturing plant from North Carolina to New York.

Best and worst performers of the day

The best performing sector was Consumer Staples, adding 0.5 per cent, while the worst performing sector was Consumer Discretionary,shedding 0.3 per cent.

The best performing stock in the S&P/ASX 200 was Lynas Corporation (ASX:LYC), rising 9.9 per cent to close at $1.79. Shares in St Barbara (ASX:SBM) and Carsales.com (ASX:CAR) followed higher.

The worst performing stock in the S&P/ASX 200 was Appen (ASX:APX), dropping 4.1 per cent to close at $13.45. Shares in Beach Energy (ASX:BPT) and Bellamy’s Australia (ASX:BAL) followed lower.

Asian markets

Lower: Japan’s Nikkei has lost 0.8 per cent, Hong Kong’s Hang Seng has lost 0.03 per cent and the Shanghai Composite is closed.

Wall Street

Wrapped up our four trading days this week mixed. The Dow Jones added 0.6 per cent, The S&P 500 lost 0.4 per cent and the tech heavy Nasdaq lost 2.1 per cent.

Commodities and the dollar

Gold is trading at US$1,199 an ounce.
The iron ore price last traded at US$69.24.
Light crude is US$1.78 lower at US$74.63 barrel.
One Australian dollar is buying 70.69 US cents.


Bitcoin has fallen 0.2 per cent to US$6,574, Ethereum has fallen 1.4 per cent to US$222 and EOS has gained 1.2 per cent to US$5.73, in the last 24 hours.


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