The Australian economy grew 0.4% in the September quarter: ASX closed 1.6% higher

Market Reports

by Rachael Jones

The Australian share market took a dip for the second day in a row closing 1.6 per cent lower. Banks dragged on the markets and tech stocks also declined. oOh!Media (ASX:OML) shares saw an over 20 per cent boost. More on this later. Metcash (ASX:MTS) shares dropped again today after they reported they will recognise the $237 million impairment after the 7-Eleven loss in its half year results ending October 2019. 

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 106 points down to finish at 6,607.

Futures market

Dow futures are suggesting a rise of 13 points.
S&P 500 futures are eyeing a rise of 2 points.
The Nasdaq futures are eyeing a lift of 10 points.
And the ASX200 futures are eyeing a 92 point fall for tomorrow morning.

Economic News

ABS

The Australian economy grew 0.4 per cent in seasonally adjusted chain volume terms in the September quarter 2019 and 1.7 per cent through the year, according to figures released by the Australian Bureau of Statistics (ABS) today.

The Australian Industry Group Australian Performance of Services Index fell by 1.5 points to 53.7 in November, marking a fourth month of positive conditions as the retail & hospitality sector demonstrated robust growth on the back of sales events in the lead-up to Christmas.

Company news

oOh!media (ASX:OML) shares shot up after confirming yesterday that they expect FY19 Underlying EBITDA to exceed its earlier forecast. They issued a revised FY19 Underlying EBITDA guidance of between $138 million to $143 million. In August the company expected underlying EBITDA to be in the range of $125 million to $135 million.
Improved bookings for September and the fourth quarter have resulted in an upgrade. Shares in oOh!media (ASX:OML) closed 23.9 per cent higher at $3.73.

Auswide Bank (ASX:ABA) is partnering with National Seniors Australia to provide members with access to a range of fixed interest term deposits. The move is part of Auswide Bank’s three-year strategic plan and will support further retail and business banking growth. Shares in Auswide Bank (ASX:ABA) closed 0.53 per cent higher at $5.73.

Westgold Resources (ASX:WGX) has completed its demerger of Castile Resources. At Westgold’s AGM at the end of November, shareholders overwhelmingly approved the demerger of Castile with 99.9 per cent in favour.

Rio Tinto (ASX:RIO) has approved a $1.5 billion investment over the next six years to continue production at its Kennecott copper operation in Utah in the United States. This will extend operations at Kennecott to 2032.

Homewares store Adairs (ASX:ADH) today announced that it has entered into a binding agreement to acquire all of the shares of Mocka for $75.5 million. Mocka supplies a wide range of kids furniture, nursery and baby must-haves, and other home products.

Best and worst performers 

The best performing sector was Healthcare losing the least at 0.7 per cent while the worst performing sector was consumer staples, shedding 2.2 per cent.

The best performing stock in the S&P/ASX 200 was oOh!Media (ASX:OML) closed 23.9 per cent higher at $3.73. Shares in Gold Road Resources (ASX:GOR) and Iluka Resources (ASX:ILU) followed higher.

The worst performing stock in the S&P/ASX 200 was Austal (ASX:ASB), dropping 5.1 per cent to close at $3.88. Shares in Reliance Worldwide Corp (ASX:RWC) and Metcash (ASX:MTS) followed lower.

Asian markets

Lower: Japan’s Nikkei has lost 1 per cent, Hong Kong’s Hang Seng has lost 1.2 per cent and the Shanghai Composite has lost 0.4 per cent.

Commodities and the dollar

Gold is trading at US$1,480 an ounce.
Iron ore price is 0.2 per cent lower at US$88.31.
Iron ore futures are pointing to a lift of 1.5 per cent.
Light crude is US$0.22 up at US$56.32 a barrel.
One Australian dollar is buying 68.23 US cents
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.