Postive yet minor lift to kick off week: Aus shares close 0.1% higher

Market Reports

by Jessica Amir

The local share market started the week with a minor lift of 0.01 per cent or 1 point, after rising for three straight weeks as at Friday.

We saw several stocks hit all-time highs on Friday and set new ones today, including Jumbo Interactive (ASX:JIN) Qube (ASX:QUB) and Aventus (ASX:AVN) which all set new record highs.

AMP (ASX:AMP) shares hit a three week high today, and Fortescue (ASX:FMG) shares hit an almost 1.5 month high.

At the closing bell the S&P/ASX 200 index closed 6,648 points, about 3.1 per cent or 315 points off the all-time high.

Futures market

Dow futures are suggesting a rise of 47 points.
S&P 500 futures are eyeing a rise of 76 points.
The Nasdaq futures are eyeing a lift of 14 points.
And the ASX200 futures are eyeing a 5 point or 0.1 per cent rise.

Economic news

New lending to households rose 3.9 per cent in July 2019 (seasonally adjusted), the strongest growth since October 2014, according to the latest from Australian Bureau of Statistics (ABS). This follows the 1.9 per cent rise in June 2019. For the second month in a row there were particularly strong increases in the level of new lending commitments for owner occupier and investment dwellings. Despite this recent turn-around, both headline figures are low compared to their respective peaks in 2017.

Company news

Wesfarmers (ASX:WES) has booked Thursday 3 October 2019 at 1:00pm AEST for its Chemicals, Energy and Fertilisers business investor presentation and site tour. Last week a lithium developer, Kidman Resources (ASX:KDR) and its shareholders voted to be taken over by WES for $1.90 cash per share. Subject to final court approval, the deal will take place later this month. Shares in Wesfarmers (ASX:WES) closed 0.3 per cent higher at $39.67.

Coca-Cola Amatil (ASX:CCL) announced as part of its two-year transition and as part of targeting a return to mid-single digit earnings per share growth from 2020, all beverage categories will now be managed in line with geography, with the Aussie alcohol and coffee portfolios to join the Australian Beverages team under Peter West’s helm.

Suncorp (ASX:SUN) has named acting CEO Steve Johnston as the new permanent head of the company. It comes after former CEO Michael Cameron resigned in May of this year

Centuria Industrial REIT (ASX:CIP) exchanged a conditional contract for the off market purchase of an Edinburgh property in South Australia (not far from Adelaide) for $19.5 million, providing an initial yield of 7 per cent, and it's 100 per cent leased.

Best and worst performers of the day

The best performing sector was S&P/ASX Utilities adding 0.6 per cent, followed by Financiials, Property, IT and Teclcos, while the worst performing sector was S&P/ASX Health Care, shedding 0.8 per cent followed by Materails.

The best performing stock in the S&P/ASX 200 was Orocobre (ASX:ORE), rising 5.6 per cent to close at $2.66. Shares in TPG Telecom (ASX:TPM) and Adelaide Brighton (ASX:ABC) followed higher.

The worst performing stock in the S&P/ASX 200 was Regis Resources (ASX:RRL), dropping 6.9 per cent to close at $4.71. Shares in Speedcast International (ASX:SDA) and Saracen Mineral Holdings (ASX:SAR) followed lower.

Asian markets

Japan’s Nikkei has added 0.6 per cent, Hong Kong’s Hang Seng has gained 0.1 per cent and the Shanghai Composite has added 0.7 per cent.

Commodities and the dollar

Gold is trading at US$1,509 an ounce.
Iron ore price fell 1.3 per cent to US$89.05
Iron ore futures are pointing to a fall of 0.8 per cent.
Light crude is US$0.43 up at US$56.73 a barrel.
One Australian dollar is buying 68.58 US cents.

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