ANZ profit hit: Aus shares 0.3% lower at noon

Market Reports

by Ortenzia Borre

The Australian share market opened lower at the start of trade and is now down 0.5 per cent at noon. ANZ (ASX:ANZ) profit slipped 7 per cent on remediation costs after it announced a Statutory Profit after tax for the Full Year ending 30 September 2019 of $5.95 billion, down 7 per cent on the prior comparable period.

The S&P/ASX 200 index is 20 points down at 6,669. On the futures market the SPI is pointing to a fall of 25 points.

Local economic news

International Trade Price Indices

Export Price rose 1.3 per cent this quarter, main contributors were gas and gold. 

Building Approvals for September

The number of dwellings approved fell 0.8 per cent in September 2019, in trend terms, and has fallen for 22 months, according to data released by the Australian Bureau of Statistics (ABS) today. The number of dwellings approved remains 21.1 per cent lower than at the same time last year.

Broker news

Citi has rated AGL (ASX:AGL) as a Sell. The broker continues to envisage earnings headwinds but feels comfortable with the long-term energy transition. Hence, the broker struggles with the marginal buyer of the stock. The broker notes AGL is disciplined regarding the balance sheet, as it learns about the telco space with the Southern Phone acquisition. At the investor briefing the company did not shy away from the prospect of further acquisitions.

Shares in AGL (ASX:AGL) are trading at 1.8 per cent higher at $19.87

Company news

Galilee Energy's (ASX:GLL) Glenaras pilot program progressed de-watering at its coal seam gas project in the Galilee Basin in Queensland. The company said measured gas flow from the project is up 35–40 thousand standard cubic feet per day and water rates are continuing to decline as they depressure the pilot area and gas production increases. The pilot will be on production for an extended period to de-water and lower the pressure in the surrounding coal to achieve gas flow.

Shares in Galilee Energy (ASX:GLL) last traded at 99 cents.

Origin Energy (ASX:ORG) has recorded a fall in electricity sales from declining customer numbers. Sales dropped 8 per cent year-on-year in the September quarter due. Origin Energy started drilling the Kyalla unconventional exploration well in its Beetaloo Basin project in the Northern Territory in October 2019 and CE Frank Calabria said, electricity sales volumes were lower as a result of expiration of Business contracts and in our Retail segment, lower customer usage and a decline in customer numbers. The company also said natural gas volumes fell 7 per cent year-on-year, mainly as a result of short-term wholesale contracts that were not renewed.

Shares in Origin Energy (ASX:ORG) are trading at 0.4 per cent lower at $7.89.

Best and worst performers

The best-performing sector is Utilities, adding 1 per cent, while the worst performing sector is Energy, shedding 0.5 per cent.

The best performing stock in the S&P/ASX 200 is Iluka Resources (ASX:ILU) adding 5.5 per cent to $9.29, followed by shares in Pilbara Minerals (ASX:PLS) and St Barbara (ASX:SBM)

The worst performing stock in the S&P/ASX 200 is Jumbo Interactive (ASX:JIN) shedding 4.3 per cent to $22.27, followed by shares in Pro Medicus (ASX:PME) and ANZ (ASX:ANZ).

Commodities and the dollar

Gold is trading at US$1,497 an ounce.
Iron ore price rose 0.6 per cent to US$87.13
Iron ore futures are eying a lift of 0.4 per cent.
One Australian dollar is buying 69.14 US cents.