Iron ore above US$105: Aus shares close 0.3% lower

Market Reports

by Katrina Bullock

It has been a negative day of trade for the Australian share market. After opening flat the local bourse lost momentum this morning. Despite a rally in the second half of the session, the ASX200 closed 0.3 per cent lower. This follows 6 sessions of straight gains. Consumer Discretionary made significant gains today with the sector seeing a 2.01 per cent increase thanks to strong performances from Slater and Gordon (ASX:SGH), Crown Resorts (ASX:CWN), and Aristocrat Leisure (ASX: ALL). Iron ore continues to flirt with its 5-year high and is currently US$105.78 per tonne.

S&P/ASX 200 index 

At the closing bell the S&P/ASX 200 index closed 19 points lower to finish at 6,492.

Broker moves

Goldman Sachs has rated plus size fashion retailer, City Chic Collective (ASX:CCX), as a neutral with a 12 month price target of $1.95. They forecast a 20 per cent earnings per share compound annual growth rate for the 2019 to 2021 financial year period. They believe this will be driven by the roll out of new stores in Australia, New Zealand and the US, as well as online range extensions. Shares in City Chic Collective (ASX:CCX) closed 0.5 per cent lower at $1.96.

Futures market

Dow futures are suggesting a fall of 105 points.
S&P 500 futures are eyeing a dip of 14 points.
The Nasdaq futures are eyeing a fall of 54 points.
And the ASX200 futures are eyeing a 14 point fall tomorrow.

Company news

EML Payments (ASX:EML) has inked an 8 year agreement with Smartgroup Corporation (ASX:SIQ) to be their provider of branded general purpose reloadable card programs for payout of salary packaging benefits. EML expects to earn between $4 and $8 million revenue per annum from the incremental volumes in this contract provided there are no adverse changes in market conditions. Shares in EML Payments (ASX:EML) closed 2.6 per cent higher at $2.40.

Mobile games company, iCandy Interactive (ASX:ICI) has entered into a Game Cooperation Agreement with a subsidiary of Animoca Brands Corporation (ASX:AB1). The Agreement provides for the publishing, localisation and marketing in Mainland China of iCandy’s mobile game ‘Groove Planet’. China possesses the largest gaming market in the world, with mobile games accounting for revenue of USD$ 20 billion in 2018. This follows news this morning that Animoca Brands Corporation (ASX:AB1), has raised approximately $3.6 million via one of its other subsidiaries, TSB Gaming. Shares in iCandy Interactive (ASX:ICI) closed 5.97 per cent lower at 6 cents.

Gaming machine maker Aristocrat Leisure (ASX:ALL) report their profit after tax (NPAT) has jumped up 14.8 per cent to $356.5 million from $310.5 million in the six months to 31st March 2019.

Biotech company Immutep (ASX:IMM) announced the grant of a new patent by the European Patent Office.

Fonterra (ASX:FSF) is set to shut its Dennington factory in Victoria at the end of November with the loss of almost 100 staff members.

The Reject Shop's (ASX:TRS) chief executive Ross Sudano has quit after the retailer downgraded full year net profit after tax guidance to a loss of between $1 million and $2 million.

AGL Energy (ASX:AGL) today announced it has entered into a new Gas Supply Agreement with BHP Billiton Petroleum for 78 petajoules (PJ) of natural gas from the Gippsland Basin in Victoria.

IPOs

Powerwrap (ASX:PWL) started trading today. The financial technology platform provider floated with an issue price of 35 cents, opened at 35 cents and closed at 35 cents.

Best and worst performers of the day

The best performing sector was Consumer Discretionary adding 2.01 per cent while the worst performing sector was Energy, shedding 1.3 per cent.

The best performing stock in the S&P/ASX 200 was Aristocrat (ASX:ALL), rising 7.1 per cent to close at $28.40. Shares in Charter Hall Long (ASX:CLW) and Adelaide Brighton (ASX:ABC) followed higher.

The worst performing stock in the S&P/ASX 200 was Orocobre (ASX:ORE), dropping 6.2 per cent to close at $3.49. Shares in Galaxy Resources (ASX:GXY) and Pilbara Minerals (ASX:PLS) followed lower.

Asian markets

Lower: Japan’s Nikkei has lost 0.8 per cent, Hong Kong’s Hang Seng has lost 1.5 per cent and the Shanghai Composite has lost 1.03 per cent.

Commodities and the dollar

Gold is trading at US$1,275 an ounce.
Iron ore price rose 3.7 per cent to US$105.78.
Iron ore futures are pointing to a rise of 1.3 per cent.
Light crude is US$1.81 lower at US$61.32 a barrel.
One Australian dollar is buying 68.78 US cents.