Loose footing on Banking RC & earnings: Aus shares slip 0.2% lower

Market Reports

by Jessica Amir

The Australian share market started the trading week in the red, extending its losses from Friday. But importantly, last week the market gained 3.4 per cent.

Selling in Financials and Healthcare stocks like CSL (ASX:CSL) largely capped gains today, with both sectors losing over 1 per cent. Financial platform provider, Pramium (ASX:PPS) reported a 13 per cent fall in net profit after tax to $634 million in the first half of the 2019 financial years. While Bendigo and Adelaide Bank (ASX:BEN) shares fell 6.8 per cent after they reported results. 

Meantime, looking at the bigger picture, APRA advised further to the Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, of the 10 recommendations requiring APRA’s direct attention, nine will be completed by the end of 2020, with four to be tackled and completed this year (2019).

At the closing bell the S&P/ASX 200 index closed 11 points lower, or 0.2 per cent lower to finish at 6,061, that’s still in the four-month high territory.

The US market closed mostly higher on Friday, while the Dow fell 0.3 per cent on lingering fears ahead of the US-China trade deal.

Futures

Dow futures are suggesting a fall of 36 points.
S&P 500 futures are eyeing a fall of 2 points.
The Nasdaq futures are eyeing a fall of 12 points.
And the ASX200 futures are eyeing a 12 point fall tomorrow morning

Company news 

Real estate investment trust Charter Hall Long WALE REIT (ASX:CLW) has reported a 10 per cent rise in revenue from ordinary activities (to $35.5 million) in the six months to 31 December 2018. Its property portfolio grew by 23 per cent to $1.9 billion and it declared a statutory profit of $26.3 million. Stay tuned to FNN for an interview with Avi Anger, the REITs fund manager. Shares in Charter Hall Long WALE REIT (ASX:CLW) closed 0.2 per cent lower at $4.44. Year-on-year its shares have gained 19 per cent.

Global packaging company Amcor (ASX:AMC) reported a marginal rise in revenue (1 per cent) in the six months to 31 December 2018, compared to the prior corresponding period, taking its revenue to US$4.6 billion. Meantime its net profit attributable to shareholders fell 19 per cent US$267.6 million. Shares in Amcor (ASX:AMC) closed 1.9 per cent higher at $14.56. Year-on-year its shares are trading 0.6 per cent lower.

Property trust, GPT Group (ASX:GPT) reported a 14.5 per cent rise in its net profit (after tax) for the 12 months to December to $1.45 billion. It saw funds from operations (FFO) of $574.6 million, resulting in FFO security growth of 3.5 per cent. Year-on-year its shares are 26 per cent higher.

Electronics and whitegoods group, JB Hi-Fi (ASX:JBH) has announced its net profit rose 5.5 per cent to $160 million for the six months ended December 31. The strong result came on the back of strong sales growth. Its earnings (before interest and tax) increased by 4.8 per cent compared to the same time last year. As a results, the group forecast its full-year profit would be between $237 million and $245 million, a rise of up to 5.1 per cent on last year. Year-on-year its shares are 11 per cent lower.

Bendigo and Adelaide Bank (ASX:BEN) has announced net profit after tax fell 12.3 per cent to $203.2 million in the half-year. Its cash earnings after tax fell 2.4 per cent to $219.8 million for the six months ending 31 December 2018. Year-on-year its shares are 5 per cent lower.

Best and worst performers of the day

The best performing sector was Materials adding 1.5 per cent while the worst performing sector was Financials, shedding 1.2 per cent.

The best performing stock in the S&P/ASX 200 was Estia Health (ASX:EHE), rising 7.3 per cent to close at $2.50. Shares in Sigma Healthcare (ASX:SIG) and Alumina (ASX:AWC) followed higher.

The worst performing stock in the S&P/ASX 200 was Bendigo and Adelaide Bank (ASX:BEN), dropping 6.8 per cent to close at $10.39. Shares in Spark Infrastructure (ASX:SKI) and News Corporation (ASX:NWS) followed lower.

Asian markets 

Japan’s Nikkei has lost 2 per cent, Hong Kong’s Hang Seng has added 0.2 per cent and the Shanghai Composite has gained 0.8 per cent.

Commodities and the dollar

Gold is trading at US$1,312 an ounce.
Iron ore last traded at $85.53.
Light crude is $0.08 down at $52.72.
One Australian dollar is buying 70.95 US cents.