Webjet stocks dip as EBITDA downgraded: Aus shares close 0.3% higher

Market Reports

by Katrina Bullock

It has been a positive day of trade for the Australian share market. After opening in the black the local bourse managed to gain momentum early in the session and track sideways for most of the day to close 0.3 per cent higher. As for the sectors, we saw strong performances from Real Estate, Health Care and Energy. Digital travel company, Webjet (ASX:WEB) took a hit today after one of its customers, Thomas Cook, entered compulsory liquidation.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 19 points higher to finish at 6,750.

Futures market

Dow futures are suggesting a rise of 107 points.
S&P 500 futures are eyeing a rise of 12 points.
The Nasdaq futures are eyeing a lift of 38 points.
And the ASX200 futures are eyeing a 25 point rise tomorrow morning.

Economic news

The Commonwealth Bank’s Flash Purchasing Manager’s Index was released today. The Flash Services PMI for September 2019 was 52.5 (compared to 49.1 in August 2019) showing an expansion in the service sector, compared to the decline in August. This performance beat market expectations with consensus predicting a contractionary figure of 45.3.

The Flash Manufacturing PMI for September, however, was 49.4 (compared to 50.9 in August 2019). This signals a decline for the month of September, coming off the back of the expansion we saw in August. This unexpected decline is the first decline in the health of the manufacturing sector since the survey began in May 2016.

Company news

Digital travel company, Webjet (ASX:WEB), has made its way onto the worst performer list today after one of its customers, Thomas Cook, entered compulsory liquidation. Thomas Cook is a customer of Webjet’s WebBeds B2B business and as at 23 September 2019, Thomas Cook owed Webjet approximately 27 million Euros in unpaid receivables. As a result, Webjet has revised its guidance for WebBeds for the 2020 financial year and is expecting a decrease of up to $7 million in EBITDA compared to its August estimate. The company says that this will not have a material impact on Webjet’s liquidity as any write-off will be absorbed by existing cash reserves and undrawn facilities. Shares in Webjet (ASX:WEB) closed 3.5 per cent lower at $11.11.

ANZ (ASX:ANZ) has today announced the completion of the sale of its retail, commercial and small-medium sized enterprise businesses in Papua New Guinea to Kina Bank.

Gold mining company, Northern Star Resources (ASX:NST) declared that its offer for Echo Resources (ASX:EAR) is now unconditional.

The Commonwealth Bank (ASX:CBA) has today announced it will issue AUD 100 million worth of subordinated notes.

REITs company, APN Convenience Retail (ASX:AQR) has agreed to acquire 7-Eleven in Maroochydore for $6.85 million.

IPO

Australian biotech company, Osteopore (ASX:OSX), started trading today. Osteopore produces 3D printed bioresorbable implants that are used in conjunction with surgical procedures to facilitate the natural stages of bone healing. It floated with an issue price of 20 cents, opened at 63 cents and closed at 73 cents.

Best and worst performers of the day

The best performing sector was Healthcare adding .07 per cent while the worst performing sector was Industrials, shedding 0.1 per cent.

The best performing stock in the S&P/ASX 200 was IOOF Holdings (ASX:IFL), rising 12 per cent to close at $6.71. Shares in Orocobre (ASX:ORE) and Premier Investments (ASX:PMV) followed higher.

The worst performing stock in the S&P/ASX 200 was Nearmap (ASX:NEA), dropping 4.1 per cent to close at $2.56. Shares in Resolute Mining (ASX:RSG) and Chorus (ASX:CNU) followed lower.

Asian markets

Lower: Japan’s Nikkei was closed today due to the Autumn Equinox, Hong Kong’s Hang Seng has lost 0.7 per cent and the Shanghai Composite has lost 1.4 per cent.

Commodities and the dollar

Gold is trading at US$1,516 an ounce.
Iron ore price fell 0.7 per cent to US$92.56.
Iron ore futures are pointing to a rise of 1.2 per cent.
Light crude is US$0.10 lower at US$58.09 a barrel.
One Australian dollar is buying 67.78 US cents.