Aveo Group and Metcash selling weigh on Monday: Aus shares 0.3% lower at noon

Market Reports

by Jessica Amir

The Aussie share market has paired back from fresh highs set last week and is now eyeing its second consecutive negative close. It echoes Wall Street’s close on Friday, after the S&P 500 slipped from its all time high and ended 0.12 per cent lower.

Most of the sectors on the ASX are tracking lower at noon with Aveo Group (ASX:AOG) and Metcash (ASX:MTS) taking the biggest toll. Metcash is tracking 9.5 per cent lower after the conglomerate which owns, IGA, Mitre 10 and Home Timber & Hardware, Metcash (ASX:MTS) has swung back into profit territory, reporting a $192.8 million profit for the year ending 30 April 2019. It was a surge from the prior year’s $148.2 million loss in FY18. However it did announce the closure of a contract. For the full story click on the company news section.

The S&P/ASX 200 index is 20 points or 0.3 per cent lower 6.631. On the futures market the SPI is 26 points lower.

Broker moves

Citi has upgraded Domino’s Pizza Enterprises (ASX:DMP) to a buy with a price target of $44.00. It comes as the pizza  chain plans to increase its European stores by 2.5 times over the next decade, which would make it the largest company it its segment. Domino’s shares are trading 3.2 per cent higher to $38.85.

Company news

Australia’s leading owner, operator and manager of retirement communities, Aveo Group (ASX:AOG) announced its annual distribution for the year ending 30 June 2019 will be 4.5 cents per stapled security. That’s within its guidance of 40 per cent to 60 per cent of Underlying Profit after Tax. The record date for determining entitlement to the distribution is Friday, 28 June 2019 with the payment expected to be paid on Monday, 30 September 2019. Aveo previously advised it would not be confirming FY19 EPS guidance on the back of the deteriorating residential property market, as well as uncertainty around future retirement sales and settlement levels. Shares in (ASX:AOG) are trading 11.8 per cent lower at $1.83 at noon.

Woodside (ASX:WPL) has completed additional work at Pluto LNG and has restarted LNG production. Meantime, in Karratha CEO Peter Coleman is hosting from a question and answer Q&A session with investors and analysts today. Shares in (Woodside (ASX:WPL) are trading 0.5 per cent higher at $37.29 at noon.

Best and worst performers

The best-performing sector is Telcos, adding 0.4 per cent, while the worst performing sector is Staples, shedding 1.2 per cent.

The best performing stock in the S&P/ASX 200 is Ausdrill Limited (ASX:ASL), rising 7.9 per cent to $1.70, followed by shares in Technology One Limited (ASX:TNE) and Domino's Pizza Enterprises Limited (ASX:DMP).

The worst performing stock in the S&P/ASX 200 is Aveo Group (ASX:AOG),dropping 11.78 per cent to $1.83 followed by shares in Metcash Limited (ASX:MTS) and NRW Holdings Limited (ASX:NWH).

Asian markets

Japan’s Nikkei has lost 0.1 per cent, Hong Kong’s Hang Seng has gained 0.1 per cent and the Shanghai Composite has added 0.1 per cent.

Commodities and the dollar

Gold is trading at US$1,407 an ounce.
Iron ore price fell 0.2 per cent to US$116.98
Iron ore futures are pointing to a fall of 1.7 per cent.
One Australian dollar is buying 69.51 US cents.

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