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 with a passion for equities and funds management. As Head of News, she has been a broadcast journalist for over seven years, specialising in finance. She has been a journalist with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for regional Channel 7 and 9. She also previously worked as a financial planner and real estate agent.