Fortescue Metals down as ore price falls: ASX closes 0.5% higher

Market Reports

by Rachael Jones

It has been a positive day of trade for the Australian share market. The local bourse managed to maintain momentum to gain 0.5 per cent. Fortescue Metals Group’s (ASX:FMG) Founder and Chairman, Andrew Forrest turned the sod on the Eliwana mine and rail project in WA. The first ore on train is expected in December 2020. Their shares dropped almost 3 per cent. Cooper Energy was also down as was Speedcast International (ASX:SDA). Eclipx (ASX:ECX) is up and so is metals and mining company Lynas.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 33 points higher to finish at 6,751.
Over the week, the market has gained 133 points or 2 per cent.

Futures market

Dow futures are suggesting a rise of 23 points.
S&P 500 futures are eyeing a rise of 3 points.
The Nasdaq futures are eyeing a rise of 19 points.
And the ASX200 futures are eyeing a 34 point rise Monday morning.

Economic news

The construction sector in Australia continued to contract in June, although at a slower rate, the latest survey from the Australian Industry Group revealed with a seasonally adjusted Performance of Construction Index score of 43.0. That’s up from 40.4 in May, although it remains well below the boom-or-bust line of 50 that separates expansion from contraction.

Company news

Eclipx Group (ASX:ECX) sold both GraysOnline and AreYouSelling to Quadrant Private Equity for $60 million. The sale will result in an accounting non-cash loss of approximately $100 million, which will be recognised in the 2H19 accounts. Shares in Eclipx Group (ASX:ECX) closed 20.6 per cent higher at $1.55.

Automotive retail group AP Eagers (ASX:APE) has offered to divest Kloster Motor Group to help secure regulatory authorisation for the proposed merger with Automotive Holdings Group. AP Eagers has entered into a Heads of Agreement with the Tony White Groupfor the sale of Klosters at an estimated sale price of $54 million for net assets and goodwill.

Lepidico (ASX:LPD) says Desert Lion Energy has obtained a final order from the Ontario Superior Court of Justice approving a statutory plan of arrangement where a subsidiary of Lepidico will acquire all of the outstanding common shares of Desert Lion Energy.

Frank Costa has decided that it is time for him to step back from his Board role at Costa Group Holdings (ASX:CGC). He has spent a lifetime’s work building Costa into a successful company within Australia’s fresh produce industry.

IPO

Invex Therapeutics (ASX:IXC) started trading today. The company aims to repurpose a diabetic drug for brain disorders. It issued shares at $0.40 and started trading on the ASX at $0.60 and is currently trading at $1.08.
Best and worst performers of the day

The best performing sector was REITs adding 1.9 per cent while the worst performing sector was Materials, shedding 0.9per cent.

The best performing stock in the S&P/ASX 200 wasEclipx Group (ASX:ECX), rising 20.6 per cent to close at $1.55. Shares in Ooh!Media(ASX:OML) and Lynas Corporation (ASX:LYC)followed higher.

The worst performing stock in the S&P/ASX 200 was Speedcast International (ASX:SDA),dropping 4.8 per cent to close at $1.80. Shares in Fortecue Metals Group (ASX:FMG) and Cooper Energy (ASX:COE) followed lower.

Asian markets

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

Wall Street

Over the week, Wall Street finished higher. The Dow Jones has gained 1.4 per cent, the S&P500 has gained 1.8 per cent, and the Nasdaq has gained 1.5 per cent.

Commodities and the dollar

Gold is trading at US$1,414 an ounce.
Iron ore price fell 2.2 per cent to US$122.03.
Light crude is US$0.60 down at US$56.80 a barrel.
One Australian dollar is buying 70.18 US cents.

 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.