Aussie shares almost wipe out last week's gains: Aus shares lose 1.3%

Market Reports

by Jessica Amir

The Australian share market lost 1.3 per cent on the latest rounds of fire from the US and China on trade war and all local sectors close lower.

At the closing bell the S&P/ASX 200 index closed 1.3 per cent or 83 points lower to finish at 6,440. Today’s loss erased Friday’s benchmark ASX200 lift of 0.3 per cent, almost erasing last week’s rise of 1.5 per cent or 99 points.

It comes as China said on Friday it would enforce tariffs of 5-10 per cent on $75 billion worth of US goods in two batches, 1 September and 15 December. Plus, it would add a 25 per cent tariff on US cars and 5 per cent on auto parts and components, (from 15 December) (this is the initially halted tariff in April).  In response Trump tweeted he would rise the tariff on the $250 billion on Chinese goods from 25 per cent to 30 per cent, plus rise the tax on the $300 billion of products from 10 to 15 per cent.

The yield curve also briefly inverted on Friday, bonds around the globe edged lower, the oil price sank 2 per cent and gold rallied to 2012 levels.

Futures market

Dow futures are suggesting a fall of 159 points.
S&P 500 futures are eyeing a dip of 14 points.
The Nasdaq futures are eyeing a fall of 40 points.
And the ASX200 futures are eyeing a 1.5 per cent or 97 points.

Company news

Sequoia Financial Group Limited (ASX:SEQ) announced a on-market buy-back of up to a maximum of 11.9 million fully paid ordinary shares. SEQ says the on-market buy-back program is the best use of funds, given the current share price. The on-market buy-back will remain in place for a period of up to 12 months or until completed. Morrison Securities will conduct buy-back. SEQ can also vary, suspend or terminate the on-market buy-back based on market conditions. Shares in Sequoia Financial Group Limited (ASX:SEQ) closed 2.7 per cent lower at $0.18.

Fortescue Metals (ASX:FMG) shares lost 5.3 per cent after it posted record underlying net profit of US$3.2 billion, 195 per cent higher than the previous year. 

Monash IVF (ASX:MVF) shares lost 3.6 per cent after it reported its full year FY19 results with a return to earnings growth in the 2H19, and its net profit after tax in the HY rose. However, for the full year NPAT fell 2.3 per cent on pcp. Just days ago Monash IVF Group (ASX:MVF) reported five Victorian based fertility specialists who currently refer patients for IVF treatment will stop using services from Monash IVF from September 2019, as the doctors plan to go it alone.

Regis Resources (ASX:RRL) shares gained 5.9 per cent after it agreed to buy a strategic package of tenements surrounding its Duketon greenstone belt, from Duketon Mining (ASX:DKM) for $20 million and up to $5 million in contingent payments, tripling Regis’ landholding in the area.

Best and worst performers of the day

The best performing sector was S&P/ASX Utilities losing 0.9 per cent while the worst performing sector was S&P/ASX Energy, shedding 3.1 per cent.

The best performing stock in the S&P/ASX 200 was Resolute Mining (ASX:RSG), rising 10.3 per cent to close at $1.76. Shares in Saracen Mineral Holdings (ASX:SAR) and Evolution Mining (ASX:EVN) followed higher.

The worst performing stock in the S&P/ASX 200 was Boral (ASX:BLD), dropping 20.6 per cent to close at $3.94. Shares in G8 Education (ASX:GEM) and Mayne Pharma Group Limited (ASX:MYX) followed lower.

Asian markets

Japan’s Nikkei has lost 2.1 per cent, Hong Kong’s Hang Seng has shed 3.1 per cent and the Shanghai Composite has lost 1.3 per cent.

Commodities and the dollar

Gold soared on Friday and is trading at US$1,543 an ounce -Feb 2012 levels
Iron ore price bounced 4 per cent higher to US$87.81
Iron ore futures are pointing to a fall of 1.4 per cent.
Light crude is US$1.38 lower at US$53.97 a barrel.
One Australian dollar is buying 67.36 US cents.

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