China import laws boost ASX: Aus shares close 0.9% higher

Market Reports

by Jessica Amir

The Australian share market snapped its losing streak, making a profit of 0.9 per cent, recouping two of the past four trading sessions losses.

Most sectors gained today with Healthcare rising 2.7 per cent after the Chinese government bolstered importing regulation. Staples, Utilities and Energy gained about 1 per cent, with Origin Energy (ASX:ORG) rising 2.4 per cent after the oil price started to claw back overnight.

At the closing bell the S&P/ASX 200 index closed 0.9 per cent or 49 points lower, at 5,691

Futures market

And the ASX200 futures are eyeing a 36 point fall tomorrow.

Company news

The A2 Milk Company (ASX:A2M) saw a rally in its shares after a new e-commerce law was introduced with the Chinese Government supporting the cross-border e-commerce (CBEC) policy. The new policy confirmed imports such as infant formulae are on the ‘positive list’. It also brought down more relaxed regulations for personal use of imports. A2 Milk Company (ASX:A2M) shares rallied on the back of the news, rising 5.9 per cent to $9.90 while Blackmores (ASX:BKL) shares also rose 5.9 per cent.

Mineral Resources (ASX:MIN) shares gained about 27 per cent after announcing the US lithium play major, Albermarle will potentially buy a 50 per cent stake in the Wodgina Lithium project for US$1.15 billion and form a JV to produce spodumene concentrate and lithium hydroxide.

Ingenia Communities Group (ASX:INA) has snapped up a waterfront holiday park on Queensland’s Sunshine Coast for $23.25 million, strengthening its position in the third largest visitor market in QLD. The site has 80 large powered sites and 15 newly built ‘glamping tents’.

Cabcharge (ASX:CAB) is set for a name change to A2B Australia, with majority shareholder support for the change. For the 1Q19 its revenue has risen 12 per cent on the same time last year, hitting $5.1 million with taxi fares rising. Its shares gained 2.4 per cent.

Best and worst performers of the day

The best performing sector was S&P/ASX Health Care adding 2.7 per cent while the worst performing sector was S&P/ASX Telco Services, shedding 0.4 per cent.

The best performing stock in the S&P/ASX 200 was Mineral Resources Limited (ASX MIN), rising 27 per cent to close at $15.76. Shares in Galaxy Resources Limited (ASX:GXY) and Primary Health Care Limited (ASX:PRY) followed higher.

The worst performing stock in the S&P/ASX 200 was Emeco Holdings Limited (ASX:EHL), dropping 4.8 per cent to close at $0.30. Shares in Costa Group Holdings Limited (ASX:CGC) and Northern Star Resources Ltd (ASX:NST) followed lower.

Asian markets

Mixed: Japan’s Nikkei has added 0.6 per cent, Hong Kong’s Hang Seng has added 0.1 per cent and the Shanghai Composite has lost 0.5 per cent.

Commodities and the dollar

Gold is trading at US$1,227 an ounce.
Iron ore price fell 0.8 per cent to US$74.06, its futures are pointing to a rise 2.3 per cent.
Light crude is $1.21 up at $US54.64 barrel.
One Australian dollar is buying 72.52 US cents.