Banks down on Westpac (ASX:WBC) report: ASX closes 0.3% higher

Market Reports

by Rachael Jones

It has been a positive day of trade for the Australian share market the local bourse managed to close 0.3 per cent higher. Banks didn’t fare so well though. Westpac (ASX:WBC) reported a 15 per cent slump in full-year profit, a cut to its dividend and announced they want to raise $2.5 billion in capital. This news sent NAB’s (ASX:NAB) shares down. NRW Holdings (ASX:NWH) shares shot up today after confirming discussions with mining and construction company BGC Contracting regarding a potential acquisition. As for the sectors today Materials led the day and Financials fell lower.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 18 points higher to finish at 6,687.

Futures market

Dow futures are suggesting a rise of 63 points.
S&P 500 futures are eyeing a rise of 7 points.
The Nasdaq futures are eyeing a lift of 29 points.
And the ASX200 futures are eyeing a 12 point rise tomorrow morning.

Local economic news

Retail sales rose 0.2 per cent in September, half of the 0.4 per cent expected by the market. For the quarter, retail trade was 0.1 per cent lower, versus expectations of 0.2 per cent.

Company news

Collins Foods (ASX:CKF) has been served with Federal Court proceedings by Taco Bill Mexican Restaurants. The Applicant wants to prevent Collins Foods from operating Taco Bell restaurants in Victoria and the Albury area of New South Wales on the basis that members of the public will be misled or deceived to believe that the Taco Bell restaurants are operated by the Applicant. Shares in Collins Foods (ASX:CKF) closed 1.8 per cent lower at $10.

Legend Mining (ASX:LEG) have started diamond drilling at Area D at its Rockford Project in the Fraser Range of Western Australia. Two diamond drillholes are being drilled to test two remodelled conductors D1 and D5. Shares in Legend Mining (ASX:LEG) closed 7.1 per cent higher at $0.04.

Westpac (ASX:WBC) announced a 16 per cent slide in statutory net profit to $6.8 billion for the 2019 full year. Cash earnings were also lower down 15 per cent to $6.85 billion.
Westpac Group CEO Brian Hartzer has described the 2019 result as “disappointing “.

Wattle Health (ASX:WHA) has signed a Collaboration Agreement with Chinese dairy products company Nouriz. Under the deal Nouriz and WHA will set up 50/50 Joint Venture (JV) for the manufacture and sale of a range of certified Australian organic nutritional dairy products, sourced from the Corio Bay Dairy Group (CBDG), into the China market.

Independence Group (ASX:IGO) has launched an off-market takeover bid for Panoramic Resources, offering one of its shares for every 13 Panoramic shares.

Best and worst performers

The best performing sector was Materials adding 2.1 per cent while the worst performing sector was Financials, shedding 0.8 per cent.

The best performing stock in the S&P/ASX 200 was NRW Holdings (ASX:NWH), rising 13.3 per cent to close at $2.55. Shares in Pilbara Minerals (ASX:PLS) and Galaxy Resources (ASX:GXY) followed higher.

The worst performing stock in the S&P/ASX 200 was Costa Group Holdings (ASX:CGC), dropping 2.6 per cent to close at $2.63. Shares in National Australia Bank (ASX:NAB) and JB Hi-Fi (ASX:JBH) followed lower.

Asian markets

Higher: Japan’s Nikkei is closed, Hong Kong’s Hang Seng rose 1.3 per cent higher and the Shanghai Composite has added 0.8 per cent.

Commodities and the dollar

Gold is trading at US$1,512 an ounce. 
Iron ore price is 0.5 per cent lower at US$85.56.
Iron ore futures are pointing to a fall of 0.8 per cent.
Light crude is US$2.02 up at US$56.20 a barrel.
One Australian dollar is buying 69.20 US cents.