Cleanaway Waste Management (ASX:CWY) shares dropped on quarter results: ASX closed 0.7% higher

Market Reports

by Rachael Jones

It has been a positive day of trade for the Australian share market. After opening in the black the local bourse managed to gain maintain to close 0.7 per cent higher. Cleanaway Waste Management (ASX:CWY) shares dropped over 13 per cent today after chief executive Vik Bansal warned that first-half profits were under pressure. Although their net profit after tax attributable to ordinary shareholders was $123.1 million up 18.9 per cent on the results achieved last year. Household consumer products company the GWA Group (ASX:GWA) shares also dropped today after reporting drop in sales for the quarter. As for the sectors, Healthcare closed on top with Industrials at the bottom.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 46 points higher to finish at 6,739

Over the week, the market has gained 1.3 per cent or 89.5 points.

Futures market

Dow futures are suggesting a fall of 23 points.
S&P 500 futures are eyeing a rise of 0.3 points.
The Nasdaq futures are eyeing a lift of 6 points.
And the ASX200 futures are eyeing a 44 point rise Monday morning.

Company news

Residential fixtures and fittings supplier GWA Group (ASX:GWA) reports that their normalised revenue was up 6.4 per cent on the prior year to $381.7 million. Net Profit After Tax has risen 3.2 per cent to $51.6 million and EBITDA is up 2.7 per cent to $82.3 million. Meanwhile, total (proforma) sales are down 8 per cent vs the first quarter of financial year 2019, of which approximately half is due to significant merchant de-stocking and half due to deteriorating market conditions and slower sales. Shares in GWA Group (ASX:GWA) closed 3.9 per cent lower at $2.99.

Qantas (ASX:QAN) today announced that Richard Goodmanson would retire as a Director of Qantas after serving 11 years on the Board. He will retire after the company’s AGM today. Shares in Qantas (ASX:QAN) closed 0.5 per cent lower at $6.25.

The Australian Competition and Consumer Commission (ACCC) will conduct market enquiries into Barro Group and its related entities’ acquisition of its current interest in Adelaide Brighton (ASX:ABC). The ACCC has stated that its investigation is focused on the impact on competition in relation to products and locations where Barro Group and Adelaide Brighton may compete with each other.

Dairy processing company, Synlait (ASX:SM1) is set to purchase Dairyworks for $112 million, subject to Overseas Investment Office approval. Dairyworks currently supplies New Zealand with almost half of its cheese and a quarter of the country’s butter.

Ship manufacturer, Austal (ASX:ASB) has penned a contract for the design and construction of a 115 metre, high-speed catamaran for Molslinjen [Mols-Linien] of Denmark. This follows the delivery of a 109 metre high-speed catamaran delivered to Molslinjen [Mols-Linien] in January. The contract is valued at $136 million.

Best and worst performers 

The best performing sector was Healthcare adding 1.8 per cent while the worst performing sector was Industrials, shedding 0.05 per cent.

The best performing stock in the S&P/ASX 200 was ResMed (ASX:RMD), rising 11 per cent to close at $20.65 Shares in Resolute Mining (ASX:RSG) and Clinuvel Pharmaceuticals (ASX:CUV) followed higher.

The worst performing stock in the S&P/ASX 200 was Cleanaway Waste Management (ASX:CWY), dropping 13.2 per cent to close at $1.85. Shares in GWA Group (ASX:GWA) and Sandfire Resources (ASX:SFR) followed lower.

Asian markets

Mixed: Japan’s Nikkei has added 0.1 per cent, Hong Kong’s Hang Seng has lost 0.5 per cent and the Shanghai Composite has lost 0.1 per cent.

On Wall Street over the week the Dow added 0.1 per cent, the S&P500 added 0.8 per cent, and the NASDAQ has added 1.2 per cent.

Commodities and the dollar

Gold is trading at US$1,503 an ounce.
Iron ore price rose 0.8 per cent to US$87.34
Iron ore futures are pointing to a rise of 0.5 per cent.
Light crude is US$0.16 lower at US$56.07 a barrel.
One Australian dollar is buying 68.24 US cents.