Financial's Pendal, IOOF and AMP weigh on results: Aus shares close 0.6% lower

Market Reports

by Jessica Amir

The Australian share market wiped out most of yesterday’s gains losing 0.6 per cent. It comes as two financial heavy weights announced lacklustre results, with Pendal (ASX:PDL) announcing a lump in its profits, and IOOF (ASX:IFL) revealing its investment management saw net outflows of $129 million in the March quarter. While AMP (ASX:AMP) shares fell although not as hard, as AMP also saw heavy outflows in the quarter, with net cash outflows of $1.8 billion leaving the business in the first quarter of 2019, on the back of 'the Royal Commission environment'.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 38 points lower to finish at 6,338. That’s 0.8 per cent away from the 11.5 year highs the market hit last week.

Futures market

Dow futures are suggesting a fall of 4 points.
S&P 500 futures are eyeing a rise of 3 points.
The Nasdaq futures are eyeing a lift of 9 points.
And the ASX200 futures are eyeing a 41 point fall

Company news

Investment management company, Pendal Group (ASX:PDL) formly known as BT Investment Management, saw its shares erase about two months of gains after announcing its half-year profit fell 37 per cent. The business says the slump came on the back of a significant increase in risk aversion from clients due to rise in market and geo-political uncertainty. Its funds under management fell 1 per cent and its performance fees fell 91 per cent. Its shares lost 13 per cnet, closing at $8.04.

The world’s largest aquaculture producer of King salmon, New Zealand King Salmon (ASX:NZK) has appointed a new director, Lai Po Sing. He is currently a director of China Resources Ng Fung, which holds a 9.96 per cent stake in the shares in NZ King Salmon. He is also the Vice President, Chief Financial Officer and Company Secretary of China Resources Enterprise. Shares in New Zealand King Salmon (ASX:NZK) closed 0.4 per cent lower at $2.30.

Wesfarmers (ASX:WES) is looking to takeover lithium miner Kidman Resources (ASX:KDR) for about $776 million. The offer stands at $1.90 per share, which is a 47.3 per cent premium to Kidman’s closing price on 1 May 2019. The news saw KDR shares jump 45 per cent.

NAB (ASX:NAB) reported its six month profit after tax rose 4.3 per cent to $2.7 billion, compared to the same period a year ago and it was ahead of Citi’s expectations. The bank has decided to slash dividends by 16 per cent from 99 cents a share to 83 cents, mainly due to compensation payouts. Nevertheless, NAB’s revenue was 1 per cent ahead of Citi’s expectations and Citi expects the bank stock will yield a total 12 month return of 22.1 per cent

Real Estate Investment Trust, Dexus (ASX:DXS) has agreed to purchase a tightly held Melbourne CBD block, 80 Collins Street Precinct in Melbourne, for $1.476 billion from QIC Global Real Estate. The transaction will increase its foothold of the CBD by 9 to 17 per cent. To fund the deal, it’s looking to raise $950 million via an institutional placement and share purchase plan.

Best and worst performers of the day

The best performing sector was S&P/ASX Health Care adding 0.5 per cent while the worst performing sector was Financials, shedding 1.1 per cent.

The best performing stock in the S&P/ASX 200 Pilbara Minerals Limited (ASX:PLS), rising 9.1 per cent to close at $0.66. Shares in Nearmap (ASX:NEA) and Orocobre (ASX:ORE) followed higher.

The worst performing stock in the S&P/ASX 200 was Pendal Group (ASX:PDL),dropping 13 per cent to close at $8.04. Shares in Ausdrill (ASX:ASL) and IOOF Holdings (ASX:IFL) followed lower after announcing heavy investment management outflows. 

Asian markets

Japan’s Nikkei is still not trading due to a public holiday, Hong Kong’s Hang Seng has added 0.6 per cent and the Shanghai Composite has gained 0.5 per cent.

Commodities and the dollar

Gold is trading at US$1,272 an ounce.
Iron ore price last traded at US$94.17
Light crude is US$0.29 lower at US$63.62 a barrel.
One Australian dollar is buying 70.20 US cents.
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.