Iluka flags $2 billion demerger: Aus shares close 0.4% lower

Market Reports

by Ortenzia Borre

The Australian share market closed 0.4 lower at the end of trade as ANZ shares fell 7 per cent after the bank unveiled its fall in profit. The big miners also fell as did Qantas after news of the airline being urged to ground its entire fleet of Boeing 747’s due to a crack on second aircraft.

Broker moves

Citi has rated AGL (ASX:AGL) as a Sell despite other brokers suggesting to hold onto the stock. Citi feels comfortable with the long-term energy transition and notes AGL is disciplined regarding the balance sheet, as it learns about the telco space with the Southern Phone acquisition. Shares in AGL (ASX:AGL) closed 1.4 per cent higher at $19.78.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 26 points lower to finish at 6,663.

Futures market

Dow futures are suggesting a rise of 26 points.
S&P 500 futures are eyeing a rise of 0.25 points.
The Nasdaq futures are eyeing a lift of 8 points.
ASX200 futures are eyeing a 34 point fall tomorrow morning.

Company news

Intega Group’s (ASX:ITG) scheme of arrangement for its demerger from Cardno Limited was implemented today.  Cardno’s holding statements would be sent out to Intega shareholders today and shares will commence trading on the ASX on a normal settlement basis from tomorrow morning.
Incoming Intega chairman Neville Buch resigned as a Cardno director today, ahead of taking up his new role. Shares in Intega (ASX:ITG) closed 5.6 per cent higher at 57 cents.

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.

Cedar Woods Properties (ASX:CWP) has bought a 43 hectare site in Melbourne’s north to accommodate a masterplanned community of more than 500 lots. The land was purchased for $56.65 million.

Iluka Resources (ASX:ILU) has flagged a possible $2 billion demerger of BHP royalites asset, Mining Area C royalty (MAC). The company says they’re looking to review the corporate and capital structure of its two principal businesses – mineral sands operations and the Mining Area C royalty (MAC).

Best and worst performers of the day

The best performing sector was Information Technology adding 1.1 per cent while the worst performing sector was Financials shedding 1.1 per cent.

The best performing stock in the S&P/ASX 200 was Costa Group Holdings (ASX:CGC),recovering some of yesterday’s losses, rising 8.4 per cent to close at $2.85. Shares in Pilbara Minerals (ASX:PLS) and Blackmores (ASX:BLK) followed.

The worst performing stock in the S&P/ASX 200 was Pro Medicus (ASX:PME), dropping 5.5 per cent to close at $26.66. Shares in Healius (ASX:HLS) and Nufarm (ASX:NUF) followed lower.

Asian markets

Japan’s Nikkei has added 0.4 per cent, Hong Kong’s Hang Seng has gained 1 per cent and the Shanghai Composite has lost 0.1 per cent.

Commodities and the dollar

Gold is trading at US$1,498 an ounce. 
Iron ore price rose 0.6 per cent to US$87.13.
Iron ore futures are pointing to a rise of 1.1 per cent.
Light crude is US$0.16 down at US$54.90 a barrel.
One Australian dollar is buying 69.25 US cents.