Aus balance of trade $4.9b vs $5.1b expected: Aus shares gain 0.4%, rising for 3rd day

Market Reports

by Jessica Amir

The Australian share market has inked its third day of straight gains, rising 0.4 per cent today, following Wall Street’s second day of gains on hopes the US Fed Reserve will cut rates. Most of the sectors on the ASX made gains today with Utilities and Property rising over 2 per cent and Consumer Discretionary rising over 1 per cent. The only two sectors that fell into the red, were Materials and Energy.

Tech stocks like Wisetech Global (ASX:WTC) had a healthy 5.7 per cent lift after presenting to investors at a conference, highlighting its strong outlook for this financial year with revenue to grow up to 53 per cent and EBITDA to grow up to 35 per cent. While Afterpay Touch (ASX:APT) shares fell slightly after it announced sales rose 143 per cent in the 11 months to May (on the prior comparable period), with global sales hitting $4.7 billion

At the closing bell the S&P/ASX 200 index closed 25 points higher to finish at 6,383

Futures market

Dow futures are suggesting a fall of 33 points.
S&P 500 futures are eyeing a dip of 4 points.
The Nasdaq futures are eyeing a fall of 12 points.
And the ASX200 futures are eyeing a 28 point rise.

Economic news

Australia’s latest trade balance data has disappointed market expectations with April balance on goods and services falling to a $4.871 billion surplus, less than the $5.1 billion consensus expectation.

Company news

Automotive Holdings Group (ASX:AHG) has inked a deal to sell its entire 74 per cent stake in Motorcycle Distributors Australia Pty Ltd (MDA) for $18 million. Austrian business KTM Sportmotorcycles is buying the business, taking its holding in the company to 100 per cent ownership. The MDA business made a $1.4 million loss in the ten months to 30 April 2019. Settlement is booked for July 2019 and it’s not expected to impact the takeover bid from AP Eagers. Shares in Automotive Holdings Group (ASX:AHG) closed 0.7 per cent higher at $2.84.

Ausdrill (ASX:ASL) has annouced its writing down 2.8 per cent to 3.6 per cent of its total assets, which equates to about $75 million to $95 million. The non-cash impairment will be made for the financial year ending 30 June 2019. It comes as it reviewed its working capital and balance sheets. It will however not impact its FY2019 guidance of $98 million in underlying net profit after tax. And at the same time, Ausdrill's FY2019 financial report will include a positive non-cash adjustment, relating to the rise in the Ausdrill’s original 50 per cent interest in AUMS of $198.4 million, and a $30.7 million taxation benefit from the Barminco purchase. Shares in Ausdrill (ASX:ASL) closed 6.8 per cent lower at $1.30

Santos (ASX:STO) says drilling at Dorado-2 appraisal well in Western Australia has confirmed the presence of strong oil and gas resources. Santos has 80 per cent stake in the field, the rest is owned by Carnarvon Petroleum.

Helloworld Travel (ASX:HLO) has acquired New Zealand sports travel specialists, the Williment Travel Group. Its annual revenue is over $NZ15 million.

Nearmap (ASX:NEA) has launched its latest product Nearmap 3D, which gives customers the ability to stream and export 3D imagery on-demand through Map-Browser.

IPOs

Renergen (ASX:RTL) started trading today after raising $10 million at $0.80, the equivalent to the price it was on the JSE at. The helium explorer, which is somewhat back by the US government floated with an issue price of $0.80 opened at $0.86 and closed at $1.02. FNN interviewed CEO, Stefano Marani today. Interview coming soon to FNN. However, be sure to check out the pre-listing interview. 

Healthcare technology business PKS Holdings (ASX:PKS) started trading today. It was issued at $0.20, opened at $0.20 and it closed at $0.18 cents.

Best and worst performers of the day

The best performing sector was S&P/ASX Utilities adding 2.4 per cent while the worst performing sector was S&P/ASX Materials, shedding 1 per cent.

The best performing stock in the S&P/ASX 200 was Wisetech Global Limited (ASX:WTC), rising 5.7 per cent to close at $26.27. Shares in Charter Hall Group Limited (ASX:CHC) and Estia Health Limited (ASX:EHE) followed higher.

The worst performing stock in the S&P/ASX 200 was Ausdrill Limited (ASX:ASL), dropping 6.8 per cent to close at $1.30. Shares in Emeco Holdings Limited (ASX:EHL) and Speedcast International Limited (ASX: SDA) followed lower.

Asian markets

Japan's Nikkei has fallen 0.1 per cent, Hang Sang lost 0.1 per cent and China's Shanghai Composite has lost 0.9 per cent.

Commodities and the dollar

Gold is trading at US$1,333 an ounce.
Iron ore price is flat at US$100.38
Iron ore futures are pointing to a fall of 1.1 per cent.
Light crude is US$1.79 lower at US$51.69 a barrel.
One Australian dollar is buying 69.69 US cents.