Second day of falls but holding 11.5 yr highs: Aus shares close 0.3% lower

Market Reports

by Jessica Amir

The Australian share market ended lower for the second day but is still in new 11.5-year high territory. After falling like a stone at the open the local bourse lost momentum recouped some of the earlier losses but remained underwater with most of the sectors closing with a loss and the market ending 0.3 per cent lower at the close of trade.

We saw profit taking in the property sector, after it hit a new decade high yesterday, while the worst performing sector was Telcos, following by Utilities, which remained a worst performer for the second day.

Industrials were the best performing sector today with Spotless (ASX:SPO) rising 1.8 per cent and Qantas (ASX:QAN) gaining over 1 per cent.

At the closing bell the S&P/ASX 200 index closed 15 points higher to finish at 6,665.

Futures market

Dow futures are suggesting a fall of 6 points.
S&P 500 futures are eyeing a rise of 1 points.
The Nasdaq futures are eyeing a lift of 4 points.
And the ASX200 futures are eyeing a 20 point fall.

Economic news

The value of engineering construction activity work fell in March 2019 quarter by 4.4 per cent, while over the year it fell 12.9 per cent in trend terms, according to the ABS.

Company news

Exchanged traded fund (ETF) fund manager State Street became a major holder of Sandfire Resources Nl (ASX:SFR), buying a 5.06 per cent stake in the company. It comes after the copper-gold company, Sandfire Resources (ASX:SFR) made a $167 million takeover to buy MOD Resources (ASX:MOD) yesterday. Shares in Sandfire Resources (ASX:SFR) closed 4.3 per cent higher at $6.55.

Exchanged traded fund (ETF) fund manager State Street became a major holder of CSR (ASX:CSR) shares, taking a 5.01 per cent stake in the company. At the same time, CSR also notified the ASX that it re-elected Matthew Quinn as a director, at its AGM today. Matthew Quinn was previously the the Managing Director of Stockland (ASX:SGP), Australia’s largest diversified property group. Shares in CSR (ASX:CSR) closed 2 per cent lower at $3.97.

Afterpay Touch Group (ASX:APT) co-founders Anthony Eisen and Nick Molnar confirm they do not plan on sell any further shares next financial year (FY2020). They also confirmed they committed to the global technology. Meantime, APT will defer the $30 million share purchase plan announced two weeks ago as it awaits the final audit report requested by AUSTRAC. The SPP price will be $23

New Zealand heavyweight dairy producer Fonterra Shareholders Fund (ASX:FSF) released a global update for June showing a significant monthly production decline in Australia. While, New Zealand finished season up on weak prior season.

Fletcher Building (ASX:FBU) plans to return up to NZ$300 million to shareholders through an on-market share buyback on the back of the NZ$1.2 billion Formica sale. At the same time it also confirmed FY19 EBIT guidance of NZ$620-NZ$650 million.

Best and worst performers of the day

The best performing sector was Industrials adding 0.4 per cent while the worst performing sector was Telco Services, shedding 1.2 per cent.

The best performing stock in the S&P/ASX 200 was NRW Holdings (ASX:NWH), rising 6.9 per cent to close at $2.47. Shares in Afterpay Touch Group (ASX:APT) and Sandfire Resources (ASX:SFR) followed higher.

The worst performing stock in the S&P/ASX 200 was Orocobre (ASX:ORE), dropping 4.9 per cent to close at $2.93. Shares in Emeco Holdings (ASX:EHL) and Bellamy’s Australia (ASX:BAL) followed lower.

Asian markets

Mixed: Japan’s Nikkei has lost 0.6 per cent, Hong Kong’s Hang Seng has added 0.1 per cent and the Shanghai Composite has lost 0.2 per cent.

Commodities and the dollar

Gold is trading at US$1,409 an ounce.
Iron ore price fell 2 per cent to US$114.46.
Light crude is US$0.87 up at US$58.77 a barrel.
One Australian dollar is buying 69.74 US cents.