Infotech falls as some tech companies release their fiscal year results: ASX closes 0.7% higher

Market Reports

by Rachael Jones

It has been a mostly positive day of trade for the Australian share market after a small dip after the first hour of trade the local bourse managed to close 0.7 per cent higher. Shares in WiseTech Global (ASX:WTC) dropped today on the back of their AGM despite reporting a delivered revenue of $348.3 million and net profit after tax of $54.1 million. This was a 57 per cent and 33 per cent increase, respectively, on FY 2018’s result. Shares in New Zealand’s telecommunications company Chorus (ASX:WTC) shot up after the release of the Commerce Commission’s draft fibre input methodologies decision. As for the sectors today Consumer Staples led the day and Infotech came in last – the only sector to end the day in the red.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 47 points higher to finish at 6,814.

Futures market

Dow futures are suggesting a gain of 27 points.
S&P 500 futures are eyeing a rise of 3 points.
The Nasdaq futures are eyeing a lift of 15 points.
And the ASX200 futures are eyeing a 39 point rise rise tomorrow morning.

Economic News

The Reserve Bank released the minutes from their meeting on the 5th November today showing board members did acknowledge there was a case to cut the cash rate to a new record low before leaving it unchanged at 0.75 per cent.

Company news

The Colonial Mutual Life Assurance Society (CMLA), a subsidiary of the Commonwealth Bank of Australia (ASX:CBA), today pleaded guilty to 87 alleged contraventions of the anti-hawking provisions of the Corporations Act 2001. Penalties will be determined on 28 November, 2019. The alleged contraventions related to telephone sales of Simple Life insurance products by CMLA in the period 7 October 2014 to 16 December 2014. Shares in the Commonwealth Bank of Australia (ASX:CBA) closed 0.4 per cent higher at $80.67.

Software company TechnologyOne (ASX:TNE) has posted a 50 per cent increase in profit to $76.4 million for the financial year ending 20 September 2019. Recurring Revenue of $102 million was up 44 per cent.

A2 Milk (ASX:A2M) as lifted its earnings margin forecast to 29 to 30 per cent for 2020 financial year ahead of its previous guidance of 28.2 per cent. The increase comes on the back of Improved price yield and a reduction in the cost of goods sold. For the first half of 2020 the company expects revenue in the range of $780 million to $800 million.

Abacus Property Group (ASX:ABP) and Charter Hall’s plans to purchase the Australian Unity Office Fund will not go ahead. It comes after shareholders did not provide enough support for the scheme at a meeting held yesterday.

Best and worst performers 

The best performing sector was Consumer Staples closed 1.5 per cent higher while the worst performing sector was Info Tech, shedding 1.2 per cent.

The best performing stock in the S&P/ASX 200 was The A2 Milk Cpmpany (ASX:A2M), rising 11.2 per cent to close at $13.37 Shares in Chorus (ASX:CNU) and Pilbara Minerals (ASX:PLS) followed higher.

The worst performing stock in the S&P/ASX 200 was Wisetech Global (ASX:WTC), dropping 7.7 per cent lower at 26.65. Shares in TechnologyOne (ASX:TNE) and Clinuvel Pharmaceuticals (ASX:CUV) followed lower.

Asian markets

Mixed: Japan’s Nikkei has lost 0.4 per cent, Hong Kong’s Hang Seng has gained 1 per cent and the Shanghai Composite has added 0.5 per cent.

Commodities and the dollar

Gold is trading at US$1,470 an ounce.
Iron ore price is 0.9 per cent higher at US$85.77.
Iron ore futures are 0.15 per cent higher.
Light crude is US$0.17 lower at US$56.97 a barrel.
One Australian dollar is buying 67.98US cents.