Macquarie downgrades Blackmores (ASX:BKL): Aus shares close 0.6% lower

Market Reports

by Katrina Bullock

The Australian share market has experienced a steady decline over the afternoon to close 0.6 per cent lower. The Information Technology sector and the Industrial sector weighed heaviest on the market, losing  1.9 and 1.8 per cent respectively. Materials was the only sectors that managed to cap some gains today.

At the closing bell the S&P/ASX 200 index closed 37 points lower, or 0.6 per cent lower to finish at 6,660.

Futures market

Dow futures are suggesting a fall of 5 points.
S&P 500 futures are eyeing a dip of 1 points.
The Nasdaq futures are eyeing lift of 4 points.
And back home the ASX200 futures are eyeing a 39 point fall tomorrow morning.

Broker moves

Macquarie rates Blackmores (ASX:BKL) as an Underperform and reduces its 12-month price target to $58. The broker notes that regulatory changes affecting trade in China have continued to weigh along with gross margin pressures. Meanwhile, at the AGM Blackmores flagged significant management and board level changes. Shares in Blackmores (ASX:BKL) closed 3.4 per cent lower at $83.11.

Company news

Corporate Travel Management (ASX:CTD) has topped the best performer list after confirmed its full year guidance at today’s AGM. It expects underlying earnings before interest, tax, depreciation and amortisation to be between $165 and $175 million. This would represent a 10 to 16.5 per cent growth compared to the prior year. This comes despite Managing Director Jamie Pherous’s concern about the challenging macro environment. The company expects a slightly higher performance in the second half of 2020 compared to the first half due to improvements in the European and Asian macro-economic environments and the business’s historic trend of seeing increases in the second half of the year. Shares in Corporate Travel Management (ASX:CTD) closed 9.96 per cent higher at $19.76.

Australia’s largest motorcycle dealership operator, MotorCycle Holdings (ASX:MTO), has completed its acquisitions of Canberra MotorCycle Centre and Melbourne Northside Harley-Davidson.

A US subsidiary of building and investment company Brickworks (ASX:BKW) has penned an agreement to acquire the assets of Redland Brick for approximately $70 million.

Medibank Private (ASX:MPL) has downgraded its 2020 outlook following higher than expected claims.

Bubs Australia (ASX:BUB) has inked a strategic agreement with Alibaba Centralised Import Procurement to capitalise on the growth of China’s goat dairy market.

Best and worst performers of the day

The best performing sector, and the only one in the green was Materials adding 0.2 per cent while the worst performing sector was Information technology, shedding 1.9 per cent.

The best performing stock in the S&P/ASX 200 was Corporate Travel Management (ASX:CTD), rising 9.96 per cent to close at $19.76. Shares in Pendal Group (ASX:PDL) and Adelaide Brighton (ASX:ABC) followed higher.

The worst performing stock in the S&P/ASX 200 was Medibank Private (ASX:MPL), dropping 8.5 per cent to close at $3.11. Shares in Appen (ASX:APX) and Clinuvel Pharmaceutical (ASX:CUV) followed lower.

Asian markets

Mixed: Japan’s Nikkei has added 0.2 per cent, Hong Kong’s Hang Seng has lost 0.01 per cent and the Shanghai Composite has lost 0.2 per cent.

Commodities and the dollar

Gold is trading higher at US$1,486 an ounce.
Iron ore price is flat at US$83.30 Its futures are pointing to a rise of 1.9 per cent.
Light crude is 4 cents higher up at US$57.27 barrel.
One Australian dollar is buying 68.99 US cents.