Aus shares flat ahead of Trump Xi meeting

Market Reports

by Jessica Amir

US equities extended their red run ahead of US President Trump meeting with Chinese President Xi Jinping later this week at the G20. And earlier the Australian share market followed suit, carving out its third straight session of losses. The local bourse fell sharply at the open and is recouping those losses tracking 0.02 per cent higher at noon.

We’ve seen the biggest falls in the Property and Utilities sectors, with profit taking in REITs with Centuria Capital Group (ASX:CNI) trading at a 10-year high, despite trading over 3 per cent lower. The materials space performer well this session with a 2 per cent gain in iron ore miner Fortescue Metals (ASX:FMG), while some of the gold majors are underwater with the gold price slipping 1 per cent overnight, but holding six-year highs

The S&P/ASX 200 index is 2 points up cent higher at 6,642. On the futures market the SPI is 13 points higher.

Company news

Real estate investment trust company, Growthpoint Properties Australia (ASX:GOZ) announced to plans to $150 million via a fully-underwritten institutional placement and $15 million via a share purchase plan at $3.97 per share. Post the raise, gearing will be 31.6 per cent, provides $197 million of purchase capacity. The company says it’s continues to find and review acquisition opportunities and is in advanced stages of due diligence on a modern office building located in metropolitan Sydney. The company also advised FY19 funds from operations (“FFO”) per security guidance will be at least 25.0 cps. While it will bolster for FY20 to at least 25.4 cps. While its distribution per share yield will be 6 per cent, at 23.8 cps. Growthpoint Properties Australia (ASX:GOZ) last traded at $4.26 at noon. Year-on-year its shares are trading 16 per cent higher.

Another property group, Cromwell Property Group (ASX:CMW) announced its raised $375 million via a underwritten institutional raise at an price of $1.15 per new share. The capital enables Cromwell to pursue over $1.0 billion of acquisition opportunities that are in either exclusive due diligence or advanced negotiations, plus over $1 billion of value-add development opportunities. Shares in Cromwell Property Group (ASX:CMW) are trading 6.97 per cent lower at $1.17 at noon. Year-on-year its shares are trading 4 per cent higher.

Best and worst performers

The best-performing sector is S&P/ASX Energy, adding 1 per cent, while the worst performing sector is S&P/ASX A-REIT, shedding 1.8 per cent.

The best performing stock in the S&P/ASX 200 is Ardent Leisure Group Limited (ASX:ALG), rising 4.98 per cent to $1.05, followed by shares in Bluescope Steel Limited (ASX:BSL) and Mayne Pharma Group Limited (ASX:MYX).

The worst performing stock in the S&P/ASX 200 is Cromwell Property Group (ASX:CMW),dropping 6.97 per cent to $1.17, followed by shares in Orocobre Limited (ASX:ORE) and Charter Hall Retail Reit (ASX:CQR).

Asian markets

Japan’s Nikkei has added 0.6 per cent, Hong Kong’s Hang Seng has gained 0.7 per cent and the Shanghai Composite has added 0.9 per cent.

Commodities and the dollar

Gold is trading at US$1,408 an ounce.
Iron ore price rose 2.8 per cent to US$117.63
Iron ore futures are pointing to a rise of 3.4 per cent.
One Australian dollar is buying 69.99 US cents.