ASX reverses 12-months of gains: Aus shares close 2.8% lower

Market Reports

by Jessica Amir

The Australia shares market took a hit of 2.8 per cent, losing a year’s worth of gains, with all our sectors trading lower, taking the local bourse back to where it was on early October 2017.

Most sectors lost 2 per cent or more with 5 sectors losing 3 per cent. From the outset, we had negative Wall Street leads after S&P500 lost over 3 per cent and the tech-heavy Nasdaq lost over 4.4 per cent on macroeconomic concerns.

We did see pots of gold in the market though, with gold stocks flexing their muscle while Harvey Norman (ASX:HVN) and AMP (ASX:AMP) both hitting new multi-year lows. 

At the closing bell the S&P/ASX 200 index closed 165 points lower, or 2.8 per cent lower to finish at 5,664.

Futures market

Dow futures are suggesting a rise of 10 points.
S&P 500 futures are eyeing a rise of 1 point.
The Nasdaq futures are eyeing lift of 2 points.
And the ASX200 futures are eyeing a 21 point fall tomorrow morning

Company news

Rare-earths mining company Lynas Corp (ASX:LYC) announced record production in the September quarter, a lift of 9 per cent on the June quarter. Plus it also saw a 58 per cent jump operating cash flows from activities, compared to the June quarter. Shares in Lynas Corp (ASX:LYC) closed 7.3 per cent higher at $1.70.

AMP (ASX:AMP) shares hit new multi-year lows, after it announced falls in AMP Capital cash flows from $521 million in the third quarter of 2018, compared to the same time last year’s $616 million. It also announced the sale of its life and wealth protection businesses for $3.45 billion. It closed 24.5 per cent lower at $2.50. A price it was last at in 2003.

Waste management major, Cleanaway Waste Management (ASX:CWY) says it’s trading in line with expectations, is expecting continued growth in its platform and that the purchase of Tox Free Solutions (ASX:TOX) which completed in mid-May, is tracking as planned. These are some of the announcements the Chairman made at today’s AGM. Its outlook remains the same. Its shares gained 5 per cent today.

Qantas (ASX:QAN) announced its revenue rose 6.3 per cent in the first quarter of the 2019 financial year, (compared to the prior corresponding period) with revenue hitting $4.14 billion. A record result for the flying kangaroo. 4.6 per cent lower.

Best and worst performers of the day

The best performing sector was S&P/ASX Real Estate Investment Trusts shedding 1.14 per cent while the worst performing sector was S&P/ASX Health Care, shedding 3.6 per cent.

The best performing stock in the S&P/ASX 200 was Lynas Corporation Limited (ASX:LYC), rising 7.3 per cent to close at $1.70. Shares in Cleanaway Waste Management (ASX:CWY) and Resolute Mining Limited (ASX:RSG) followed higher.

The worst performing stock in the S&P/ASX 200 was Amp (ASX:AMP), dropping 24.5 per cent to close at $2.50. Shares in Emeco Holdings (ASX:EHL) and Super Retail Group (ASX:SUL) followed lower.

Asian markets

Lower: Japan’s Nikkei has lost 3.5 per cent, Hong Kong’s Hang Seng has lost 2 per cent and the Shanghai Composite has lost 1.4 per cent.

Commodities and the dollar

Gold is trading at US$1,237 an ounce.
Iron ore price rose 0.6 per cent to US$74.73 and its futures are pointing to a rise of 1.04 per cent.
Light crude is US$0.04 lower at US$66.39 barrel.
One Australian dollar is buying 70.76 US cents.

Cryptocurrencies

Bitcoin has lost 0.3 per cent to US$6,487, Ethereum has fallen about 1.4 per cent to US$202 and EOS has shed about 1.3 per cent to US$5.36.

 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.