ASX sheds a month of gains on tariff war: Aus shares 1.2% lower at noon

Market Reports

by Jessica Ellerm

The Australian share market has fallen 1.2 per cent, after the after the Dow Jones on Wall Street saw its worst day since January (falling 2.4 per cent) as China retaliated to the United States new tariffs introduced last week and advised it will put $60 billion of Tariffs on US goods from 1 June 2019.

But it was the tech heavy Nasdaq that fell the most in the US, falling 3.4 per cent. As a result our IT sector is somewhat down the most, with Appen (ASX:APX) losing 2.8 per cnet. 

While National Australia Bank (ASX:NAB) has fallen 5.3 per cent after going ex-dividend, and is paying 83 cents fully franked.

The S&P/ASX 200 index is 76 points lower at 6,222 points, back to where it was a month ago, 12 April 2019. On the futures market the SPI is 83 points lower.

Broker calls

Citi Research has shared its take on CBA’s (ASX:CBA) third quarter update, noting the big four banks cash earnings excluding notable items was 9 per cent below Citi’s expectations, with its earnings hitting $2.2 billion, below the $2.4 billion expected. Citi maintained its neutral position on the stock with a price target of $70.50. CBA shares are 1.7 per cent lower at $72.17 at noon. 

Company news

Gold mining company, Evolution Mining, (ASX:EVN) has started its airborne survey on its large, early-stage gold exploration Murchison Project in Western Australia. The survey will provide a detailed magnetic/radiometric look of the whole project area, highlighting potential ‘greenstone’ gold mineralisation deposits. The company also highlighted its overall FY19 discovered guidance of $40-$50 million and its FY19 Group EBITDA margin of 48 per cent. The company is presenting at Bank of America Merrill Lynch’s metal, mining and steel conference from 14 to 16 May 2019. Shares in Evolution Mining, (ASX:EVN) are trading 7.8 per cent higher at $3.59 at noon.

Automotive Holdings Group (ASX:AHG) has downgraded its FY19 NPAT guidance to be $50 million, down from its operating NPAT guidance of $52 - $56 million provided in February 2019. The downward revision comes on the back of challenging conditions in retail volumes and margins, as well as weaker than expected April performance in AHG's refrigerated logistics division amid Easter trade. Shares in Automotive Holdings Group (ASX:AHG) are trading 1.3 per cent lower at $2.35 at noon.

Aftermarket car parts and accessory business, Bapcor (ASX:BAP) has partnered with Greenfleet to plant native forests in Australia and also capture over 5,250 tonnes of carbon emissions, to help combat climate change and help protect our environment. Shares in Bapcor Limited (ASX:BAP) are trading 2.1 per cent lower at $5.50 at noon.

IPOs 

Perpetual Credit Income Trust (ASX:PCI) stared traded today after issuing shares at $1.10, it started at trading at $1.11 and that’s where it is trading at the moment.

Best and worst performers

The best-performing sector is S&P/ASX A-REIT, losing 0.3 per cent, while the worst performing sector is S&P/ASX Financials, shedding 2.2 per cent.

The best performing stock in the S&P/ASX 200 is Evolution Mining Limited (ASX:EVN), rising 7.8 per cent to $3.59, followed by shares in Regis Resources Limited (ASX:RRL) and Saracen Mineral Holdings Limited (ASX:SAR).

The worst performing stock in the S&P/ASX 200 is Mayne Pharma Group Limited (ASX: MYX), dropping 15 per cent to $0.57, followed by shares in National Australia Bank Limited (ASX:NAB) and IOOF Holdings Limited (ASX:IFL).

Asian markets

Tokyo’s Nikkei is 1.2 per cent lower, Hong Kong’s Hang Seng is 1.9 per cent lower and China’s Shanghai Composite lost 0.4 per cent.

Commodities and the dollar

Gold is trading at US$1,300 an ounce.
Iron ore price fell 1.2 per cent to US$96.10
Iron ore futures are pointing to a rise of 0.3 per cent.
One Australian dollar is buying 69.57 US cents.