Centuria enters affordable housing, Zip Co shares up 13%: Aus shares close flat

Market Reports

by Jessica Amir

The Australian share market started the week with a bumpy session as traders and investors absorbed the news out of China, that the nation’s imports fell 7.6 per cent in March, which took its toll on our Healthcare sector. We saw the local bourse fall at the open and claw back before closing off Monday flat, not even gaining one point. Nevertheless, it marks the second rise for the straight session.

No economic news came out today. However, the ASIC advised that following its investigation, Citigroup will refund over $3 million to over 110 retail clients, for losses that arose out of complex product investments (or structured products) offered from 2013 and 2017.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 0.1 points higher to finish at 6,251 points.

Futures market

Dow futures are suggesting a rise of 8 points.
S&P 500 futures are eyeing a dip of 2 points.
The Nasdaq futures are eyeing a fall of 7 points.
And the ASX200 futures are eyeing an 8 point fall.

Company news

Tassal Group (ASX:TGR) has welcomed the full Federal Court judgement regarding Okehampton Bay, with its farming operations at the site already consistent with the ruling. The ruling is in line with its current operational practices and 'provides certainty for the company’s east coast-based employees and the continued operations at Okehampton Bay'. The site has used KGrid nets since the farm’s inception and the company already employed bundled feed servicing line technology. Shares in Tassal Group (ASX:TGR) last traded at $4.99.

Zip Co (ASX:Z1P) has announced its share purchase plan raised $35.8 million with plans to initially only raise $5 million. It comes after the buy now pay later company raised $42.8 million via an institutional placement. Shares in Zip Co (ASX:Z1P) closed 12.5 per cent higher at $2.70.

Rio Tinto (ASX:RIO) has approved an additional $302 million investment in its Resolution Copper project in Arizona in the US. The investment will fund additional drilling, ore-body studies, infrastructure improvements and permitting activities as Rio looks to progress the project to the final stage of its permitting phase.

Centuria Capital Group (ASX:CNI) is set to enter the social and affordable housing market after establishing a partnership with Compass Housing and Tetris Capital. As part of the partnership, Centuria will source, develop and deliver 192 dwellings across four separate properties throughout the Hunter and Central Coast regions, with CNI contributing about $20 million in equity to the initiative.

Regis Resources (ASX:RRL) has commenced underground mine development at its Rosemont site with decline development advanced to over 150 metres. It is expected that first ore will be mined in the September quarter 2019. The underground mine production is set to add 480,000 to 600,000 tonnes per annum.

Broker moves

Citi Research has retained its neutral (hold) stance for investment management firm, Pendal Group (ASX:PDL) saying its core fund flows in the second quarter were soft and disappointed. Citi appraised Pendal’s multi-boutique operating model, which ‘should be well placed throughout different market cycles’. Citi increased its 12-month target price for Pendal Group shares, up from $8.20 to $9.50.

OZ Minerals (ASX:OZL) has been rated a high-risk buy by Shaw and Partners, with a price target of $13.00 on the back of the company reporting a strong start to 2019. OZL reported results on Friday with its underground copper-gold South Australian mine, Carrapateena reaching first ores and on track for commissioning this year, while the miner’s copper and gold production are on track for annual guidance.

Best and worst performers of the day

The best performing sector was S&P/ASX 200 Consumer Staples adding 1.1 per cent, followed by S&P/ASX 200 Energy, S&P/ASX 200 Financials and S&P/ASX 200 Communication Services. while the worst performing sector was S&P/ASX 200 Utilities, shedding 0.9 per cent.

The best performing stock in the S&P/ASX 200 was Bravura Solutions (ASX:BVS), rising 7.1 per cent to close at $5.77 Shares in Whitehaven Coal Limited (ASX:WHC) and The A2 Milk Company Limited (ASX:A2M) followed higher.

The worst performing stock in the S&P/ASX 200 was Pendal Group (ASX:PDL), dropping 8.7 per cent to close at $8.49. Shares in Bellamy's Australia Limited (ASX:BAL) and Saracen Mineral Holdings (ASX:SAR) followed lower.

Asian markets

Japan’s Nikkei has added 1.4 per cent, Hong Kong’s Hang Seng has added 0.3 per cent and the Shanghai Composite has gained 0.7 per cent.

Commodities and the dollar

Gold is trading at $US1,289 an ounce.
Iron ore price rose 0.9 per cent to US$96.47
Iron ore futures are rise of 0.7 per cent.
Light crude is US$0.35 up at US$64.02 barrel.
One Australian dollar is buying 71.69 US cents.