Asian markets lower, Hang Sang closed: ASX closed 0.2% lower

Market Reports

by Rachael Jones

The Australian share market opened in the red and the local bourse managed to lose momentum closing 0.2 per cent lower. There were a few losers out there today, ANZ bank (ASX:ANZ) saw a dip in their shares after updating the market on financial services company IOOF's (ASX:IFL) acquisition of the bank's One Path Pensions and Investments (P&I) business. The parties may require approval from APRA as a condition of completion making investors cautious. Reliance Worldwide (ASX:RWC) saw their shares crash down almost 16 per cent. Eclipx Group (ASX:ECX) also saw a drop in their shares after flagging first-half impairments of up to $130 million. Meanwhile, Galaxy Resources (ASX:GXY) shares rose after reporting record monthly production output. And the Lendlease (ASX:LLC) share price shot up after takeover speculation. They have responded to reports. At the closing bell the S&P/ASX 200 index closed 13 points lower to finish at 6298

Futures market

Dow futures are suggesting a fall of 260 points.
S&P 500 futures are eyeing a dip of 31 points.
The Nasdaq futures are eyeing a fall 94 points.
And the ASX200 futures are eyeing a 13 point fall tomorrow.

Economic news

The value of new lending commitments to households fell 3.7 per cent in March 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) figures.

Company news

Education provider Navitas (ASX:NVT) confirms that the ACCC has now registered the scheme booklet regarding their proposed acquisition by BGH BidCo. They are entity that will be owned by a consortium led by BGH Capital. The Directors of Navitas unanimously recommend that Navitas shareholders vote in favour of the Scheme. Shares in Navitas (ASX:NVT) are up 0.7 up to $5.81.

Reliance Worldwide (ASX:RWC) has downgraded its EBITDA to be in the range of $260 million to $270 million instead of the previous year advised range from $280 million to $290 million. This is assuming a mild freeze in the US and less pipes freezing over and also anticipating the increased tariffs on Chinese goods. 

Lendlease (ASX:LLC) has confirmed it has not received any takeover approach despite The Australian newspaper reporting interest from a Japanese company.

Galaxy Resources (ASX:GXY) says their Mt Cattlin project has delivered record monthly production output and improved final product quality for the month of April.

Ansell (ASX:ANN) is set to invest US$32 million over the next two years to expand its Lat Krabang, Thailand manufacturing facility.

And Fluence (ASX:FLC) has today announced that it has inked a US$10 million contract for the design, engineering and construction of a seawater desalination plant for one of the world’s largest steel producers in Brazil.

Best and worst performers 

The best performing sector was REITS adding 1.5 per cent while the worst performing sector was Financials, shedding 1.8 per cent.

The best performing stock in the S&P/ASX 200 was Lendlease (ASX:LLC), rising 8.7 per cent to close at $13.85. Shares in Technology One (ASX:TNE) and Alumina (ASX:AWC) followed higher.

The worst performing stock in the S&P/ASX 200 was Reliance Worldwide Corp (ASX:RWC) dropping 15.6 per cent to close at $3.89. Shares in and Smart Group (ASX:SIQ) and Eclipx Group (ASX:ECX) followed lower.

Asian markets

Which are mostly lower :Japan’s Nikkei has lost 0.7 per cent, Hong Kong’s Hang Seng is closed and the Shanghai Composite has lost 1.3 per cent.

Commodities and the dollar

Gold is trading at US$1,284 an ounce.
Iron ore price rose 2 per cent to US$97.24
Iron ore futures are pointing to a rise of 1.2 per cent.
Light crude is US$0.01 down at US$61.80 barrel.
One Australian dollar is buying 69.77 US cents.