AUD drops as RBA cut rate to 0.75%: ASX closed 0.8% higher

Market Reports

by Rachael Jones

It has been a positive day of trade for the Australian share market. After a small dip in early morning trade the local bourse managed to gain momentum to gain 0.8 per cent. The market rose after the RBA announcement to cut rates. The major banks also moved back into the green. And Nufarm (ASX:NUF) shares rose over 15 per cent after the announcement of the sale of its South American business. As for the sectors, healthcare performed well today with energy coming in last.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 55 points higher to finish at 6,743.

Futures market

Dow futures are suggesting a rise of 101 points.
S&P 500 futures are eyeing a rise of 14 points.
The Nasdaq futures are eyeing a lift of 50 points.
And the ASX200 futures are eyeing a 44 point rise tomorrow.

Economic news

At its meeting today, the Reserve Bank of Australia decided to lower the cash rate by 25 basis points to 0.75 per cent. They say while the outlook for the global economy remains reasonable, the risks are tilted to the downside.

Also the ABS released the dwellings approvals figures showing the number of dwellings approved fell 3.9% in August 2019, in trend terms, and has fallen for 21 months

Company news

Ausdrill (ASX:ASL) released their chairman’s Address and Managing Director’s Address to the ASX this afternoon from their Annual General Meeting. They report that on a proforma basis the Group achieved growth in revenue of 14.2 per cent to $1.97 billion. Last year the company completed the acquisition of Barminco, which has now been successfully integrated into the Group. The company also made note of the $11 million fraud they uncovered in April this year. This took place over an eight year period. An employee has been dismissed, and an external third party, have been charged with offences relating to this fraud. These matters are currently before the courts. Shares in Ausdrill (ASX:ASL)closed 2.2 per cent higher at $2.28.

Downer EDI (ASX:DOW) has been awarded a two-year contract worth around $200 million to provide mining and related services at the Goonyella Riverside coal mine. The mine is owned by BHP Billiton Mitsubishi Alliance and is located in central Queensland.

New Zealand retail giant Kathmandu (ASX:KMD) has announced its acquisition of surf brand Rip Curl and equity raising. Under the agreement, Kathmandu will acquire 100 per cent of Rip Curl Group for A$350 million, bringing a 50 year end to privately owned brand.

And Oil Search’s (ASX:OSH) board has selected internal candidate Dr Keiran Wulff to succeed Managing Director Peter Botten, who will retire from the company next year. Mr Botten joined Oil Search in 1992 and has been the Company’s Managing Director for 25 years. He is currently one of the longest-serving CEOs in the ASX 200.

IPO

Mader (ASX:MAD) started trading today. They provide heavy mechanical equipment support, service and maintenance. It issued shares at $1 and started trading on the ASX at $1.20 and closed at $1.14.

Best and worst performers 

The best performing sector was Healthcare adding 2.08 per cent while the worst performing sector was Energy, shedding 0.4 per cent.

The best performing stock in the S&P/ASX 200 wasxxx (ASX:NUF), rising 15.3 per cent to close at $6.50. Shares in Technology One (ASX:TNE) and Jumbo (ASX:JIN) followed higher.

The worst performing stock in the S&P/ASX 200 was Netwealth Group (ASX:NWL), dropping 3.8 per cent to close at $8.76. Shares in HUB24 (ASX:HUB) and Webjet (ASX:WEB) followed lower.

Asian markets

Japan’s Nikkei has added 0.7 per cent, Hong Kong’s Hang Seng and the Shanghai Composite were closed for the National Day.

Commodities and the dollar

Gold is trading at US$1,461 an ounce.
Iron ore price rose 2.7 per cent to US$93.38
Iron ore futures are pointing to a rise of 2.5 per cent.
Light crude is US$0.17 up at US$54.24 a barrel.
One Australian dollar is buying 67.04 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.