Bearish day: Aus shares up 0.2% over week

Market Reports

by Katrina Bullock

The ASX200 managed to defy negative leads from Wall Street this morning to open just above the line. But the market proved bearish over the day, finishing nearly 1 per cent lower at the close of trade. Almost all of the sectors lost ground today, with the Financial and Energy sectors weighing heaviest on the market. The euro has fallen to its lowest level since 2017.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 60 points lower to finish at 6,204.

Over the week, the market has gained 11 points or 0.2 per cent.

Broker moves

Goldman Sachs has downgraded Beach Energy (ASX:BPT) from a buy to a neutral, with a 12 month price target of $2.15. Their analysis showed that Beach Energy's free cash flow yield was below the industry average. Beach Energy's share price is also heavily leveraged to oil. And risk remains for gas demand and reserve estimates. Meantime Morningstar have also recommended that the stock is overvalued.

Futures market

Dow futures are suggesting a fall of 52 points.
S&P 500 futures are eyeing a dip of 6 points.
The Nasdaq futures are eyeing a fall of 18 points.
The ASX200 futures are eyeing a 61 point fall on Monday morning.

Company news

Beach Energy (ASX:BPT) has applied for ministerial consent to transfer the Innamincka Dome licenses from Beach Energy (Beach, ASX: BPT) to its wholly owned subsidiary, Red Sky Energy (ASX:ROG). Beach Energy supports the application and will continue to provide financial security for the licenses. The Innamincka Dome Project is in the Cooper Basin, in South Australia. The purchase of Beach’s interest in the project is inclusive of all existing production infrastructure, storage tanks, yards and camp facilities. The project was suspended in 2015 due to the downturn in the oil and gas markets. Red Sky plan to “re-start” the project with a focus on resuming oil and gas production at Flax as soon as possible. Shares in Beach Energy (ASX:BPT) closed 2.4 per cent lower at $2.05.

Tilt Renewables (ASX:TLT) has completed the acquisition of the Liverpool Range Wind Farm project from Epuron Pty Ltd.

The OceanaGold Corporation (ASX:OGC) has increases the mineral resource estimate for their Martha Underground Project by 136 per cent.

Hearing implant manufacturer Cochlear (ASX:COH) could see their patients in the UK double, now that the UK has lowered the threshold for receiving implants on the National Health Service scheme.

The Commonwealth Bank of Australia (ASX:CBA) released a statement to the ASX this morning responding to each of the recommendations that came out of the final report on the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Recruitment software company LiveHire (ASX:LVH) has entered the US market. They have commitment for 5 clients across a range of industries and have signed a channel partner agreement with Workforce Logiq.

Best and worst performers of the day

The best performing sector was Real Estate Investment Trusts adding 0.05 per cent while the worst performing sector was Financials shedding 1.6 per cent.

The best performing stock in the S&P/ASX 200 was Evolution Mining (ASX:EVN) rising 1.8 per cent to close at $3.49. Shares in Northern Star Resources (ASX:NST) and Technology One (ASX: TNE) followed higher.

The worst performing stock in the S&P/ASX 200 was Orocobre, dropping 5.5 per cent to close at $3.42. Shares in Western Areas (ASX:WSA) and Independence Group (ASX:IGO) followed lower.

Asian markets 

Lower:Japan’s Nikkei has lost 2 per cent, Hong Kong’s Hang Seng has lost 1.5 per cent and the Shanghai Composite has lost 2.9 per cent.

Wall Street

Wrapped up our four trading days this week lower: The Dow Jones lost 1.7 per cent. The S&P 500 lost 2 per cent and the tech heavy Nasdaq lost 2.3 per cent.

Commodities and the dollar

Gold is trading at US$1,289 an ounce.
Light crude is 18 cents higher at US$56.40 barrel.
One Australian dollar is buying 70.09 US cents.