ASX erases yesterday’s gains on profit taking, Oil 2019 high: Aus shares close 0.8% lower

Market Reports

by Jessica Amir

It has been a negative day of trade for the Australian share market with most sectors closing in the red, wiping out yesterday’s gains

The local bourse defied Wall Street leads and fell at the open with the local bourse continuing to fall before closing 0.8 per cent lower, snapping its winning streak, after the ASX200 had gained over the past 7 trading sessions.

However, we did see stellar gains in Syrah Resources (ASX:SYR), which rose 13 per cent, Eclipx (ASX:ECX) shot up by about 8 per cent and Webjet (ASX:WEB) gained 3 per cent.

At the closing bell the S&P/ASX 200 index closed 52 points lower, or 0.8 per cent lower to finish at 6,233.

Futures

Dow futures are suggesting a gain of 18 points.
S&P 500 futures are eyeing a fall of 2 points.
The Nasdaq futures are eyeing a fall of 9 points.
And the ASX200 futures are eyeing a 55 point fall tomorrow morning

Company news 

Artificial intelligence company, Animoca Brands (ASX:AB1) has inked a deal to snap up a German sports game creator (of Football Stars), Stryking Entertainment, for $1.6 million payable upfront in shares. The company also completed a $4.6 million capital raise from international blockchain investors. Shares in Animoca (ASX:AB1) closed 5 per cent higher at $0.10.

Industrial minerals and technology company, Syrah Resources Limited (ASX:SYR) has released first quarter 2019 Balama Graphite project results, highlighting a recovery, broadly consistent with the prior quarter. Its Mozambique project achieved sales volumes of 48kt, at the upper end of its 45kt -50kt guidance. As for the weighted average price achieved, that too was at the upper end of its guidance, US$460 – US$470 per tonne. However, its cash missed expectations. Syrah Resources (ASX:SYR) closed 13 per cent higher at $1.34 at noon, inking its third day of gains, and hitting a month high. Year-on-year its shares are 58 per cent lower.

Galaxy Resources (ASX:GXY) has hired a new CEO, Simon Hay who will take the helm from 1 July 2019. He has previously held senior positions at major Australian mining companies including BHP Billiton (ASX:BHP) and Iluka Resources (ASX:ILU).

GrainCorp (ASX:GNC) has announced plans to demerge its business MaltCo by the end of the calendar year. The separation will result in a $20 million savings for shareholders. If the demerger goes ahead the new entity will be listed on the ASX, and GrainCorp shareholders will receive MaltCo shares. Mark Palmquist, current GrainCorp CEO will move to the new entity as MD and CEO after the demerger

CIMIC Group’s (ASX:CIM) businesses, CPB Contractors, UGL and Pacific Partnerships have all been handpicked to work on Queensland's public transport project, the Cross River Rail project, a $5.4 billion project. UGL will also provide maintenance services for the project over 24 years.

Best and worst performers of the day

The best performing sector was S&P/ASX 200 Consumer Discretionary losing 0.5 per cent while the worst performing sector was S&P/ASX 200 Energy, shedding 1.9 per cent.

The best performing stock in the S&P/ASX 200 was Syrah Resources Limited (ASX:SYR), rising 13 per cent to close at $1.34. Shares in Eclipx Group (ASX:ECX) and Orocobre Limited (ASX:ORE) followed higher.

The worst performing stock in the S&P/ASX 200 was Inghams Group Limited (ASX:ING), dropping 6.3 per cent to close at $4.15. Shares in Emeco Holdings Limited (ASX:EHL) and Beach Energy Limited (ASX:BPT) followed lower.

Asian markets

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

Commodities and the dollar

Gold is trading at $US1,293 an ounce.
Iron ore price rose 3.5 per cent to US$93.08
Iron ore futures are 0.2 per cent lower.
Light crude is $0.09 lower at US$62.49 barrel.
One Australian dollar is buying 71.11 US cents.