Beach Energy (ASX:BPT) makes new gas discovery: Aus shares close 0.02% higher

Market Reports

by Katrina Bullock

The Aussie share market opened higher reverberating the positive movements on Wall Street on Friday night. The S&P/ASX200 posted its sixth consecutive session of gains today, managing to scrape in 0.02 per cent higher. Pilbara Minerals (ASX:PLS) topped the best performer list rising 10.7 per cent. On the other side of the ledger, Sims Metal Management (ASX:SGM) retreated 8.8 per cent on the back of downgraded earnings. As for the sectors, Industrials led the way today and Consumer Staples trailed.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 2 points higher to finish at 6,740.

Futures market

Dow futures are suggesting a rise of 59 points.
S&P 500 futures are eyeing a rise of 5 points.
The Nasdaq futures are eyeing a lift of 18 points.
And the ASX200 futures are eyeing a flat start tomorrow morning.

Economic news

CommSec has released its October 2019 State of the States report. Victoria remains the clear winner, managing to top the overall economic performance rankings. It also ranks first in terms of economic growth, retail trade, the job market and construction work done. NSW placed second on the overall economic performance rankings, followed by Queensland, the Australian Capital Territory, Tasmania, Western Australia, the Northern Territory and then South Australia.

Broker moves

Morgan Stanley rates iron ore company, Mineral Resources (ASX:MIN), as overweight, with a 12-month price target of $18.20. The broker’s analysis shows that Mount Marion, which was a concern to investors in the current soft market, has performed well in the first quarter compared to other lithium players. Shares in Mineral Resources (ASX:MIN) closed 2.3 per cent higher at $13.66.

Company news

Beach Energy (ASX:BPT) has made a new gas discovery in the Perth Basin at exploration well Beharra Springs Deep-1. The company, which owns the production licence in conjunction with Mitsui E&P Australia has made a preliminary net gas pay estimate of 36 metres in the Kingia Sandstone. The preliminary interpretation also indicates reservoir porosities of up to 21 per cent. Shares in Beach Energy (ASX:BPT) closed 2.1 per cent higher at $2.40.

Coca-Cola Amatil (ASX:CCL) Director Julia Coates will retire from the company at the end of November following her appointment as CEO of CSR which was announced last month.

Sims Metal Management (ASX:SGM) has flagged expectations of an underlying first-half loss before interest and tax of around $20 to $30 million on the back of the scrap metal crash.

Aged care company, Aveo (ASX:AOG) has reiterated calls to shareholders to accept the takeover offer from Brookfield before the 4 November proxy vote cut-off.

Worley Parsons (ASX:WOR) has completed its acquisition of UK based offshore wind energy company 3sun Group for 20 million pounds.

Best and worst performers of the day

The best performing sector was Industrials adding 0.6 per cent while the worst performing sector was Consumer Staples, shedding 0.7per cent.

The best performing stock in the S&P/ASX 200 was Pilbara Minerals (ASX:PLS), rising 10.7 per cent to close at $0.31. Shares in Galaxy Resources (ASX:GXY) and Orocobre (ASX:ORE) followed higher.

The worst performing stock in the S&P/ASX 200 was Sims Metal Management (ASX:SGM), dropping 8.8 per cent to close at $9.20. Shares in Gold Road Resources (ASX:GOR) and Cleanaway Waste Management (ASX:CWY) followed lower.

Asian markets 

Higher: Japan’s Nikkei has added 0.3 per cent, Hong Kong’s Hang Seng has added 0.8 per cent and the Shanghai Composite has gained 0.6 per cent.

Commodities and the dollar

Gold is trading at US$1,505 an ounce.
Iron ore price rose 0.7 per cent to US$87.98.
Iron ore futures are pointing to a rise of 0.2 per cent.
Light crude is US$0.43 up at US$56.66 a barrel.
One Australian dollar is buying 68.15 US cents.