ASX hits new record: Aus shares close 0.9% higher

Market Reports

by Ortenzia Borre

It’s been another record day of trade for the Australian share market with the ASX hitting a new high closing 0.9 per cent up. PolyNovo (ASX:PNV) led the gains after the company secured product sales across Europe and shares in Fortescue Metals (ASX: FMG) also continued to rally. As for the sectors, all were in the green with Consumer Staples leading the day and Utilities falling lowest.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 66 points higher to finish at 7,133.

Futures market

Dow futures are suggesting a lift of 103 points.
S&P 500 futures are eyeing a rise of 16 points.
The Nasdaq futures are eyeing a lift of 61 points.
The ASX200 futures are eyeing a 74 point rise for tomorrow morning

Broker moves

Citi has rated Stockland Corporation (ASX:SGP) as a Sell. The broker’s analysts have conducted a deep dive analysis into Stockland's retail and residential businesses, combined good for circa 81% of group earnings. Their conclusion is both divisions have been over-earning and a range of factors will start weighing on the outlook.
The target price has lifted to $4.10 from $3.87 despite the analysts maintaining the outlook remains for a flat earnings growth profile. Retail earnings in particular are being singled out as the most likely source of future disappointment. Shares in Stockland Corporation (ASX:SGP) closed flat at $4.99.

Company news

Tech giant iSighthis (ASX:ISX) has updated shareholders in regards to court action against the ASX. The company stated the first directions hearing before the court is scheduled for 7th February. iSignThis also highlighted the ASX is not a regulator and that their imposed suspension is affecting the company’s growth as well as dampening demand from potential customers. Shares in iSighhis (ASX:ISX) last traded at $1.07.

Looking at some more headlines:

CIMIC Group's (AXS:CIM) UGL secured $180m in mining contracts.

PolyNovo (ASX:PNV) has received its first orders of Novosorb BTM for use in Germany, Austria and Switzerland.

Gold miner Regis Resources (ASX:RRL) has reported $100 million in cash flow from operations on production for the quarter, that’s up $17.5 milllion.

Best and worst performers of the day

The best performing sector was Consumer Staples adding 2.9 per cent while the sector with the fewest gains was Utilities, adding 0.1 per cent.

The best performing stock in the S&P/ASX 200 was PolyNovo (ASX:PNV), rising 11 per cent to close at $2.83. Shares in The A2 Milk Company (ASX:A2M) and Fortescue Metals (ASX:FMG) followed higher.

The worst performing stock in the S&P/ASX 200 was AP Eagers (ASX:APE), dropping 5.8 per cent to close at $9.58. Shares in St Barbara (ASX:SBM) and Sandfire Resources (ASX:SFR) followed lower.

Asian markets

Japan’s Nikkei has gained 0.6 per cent, Hong Kong’s Hang Seng has added 0.9 per cent and the Shanghai Composite has lost 0.2 per cent.

Commodities and the dollar

Gold is trading at US$1,553 an ounce. 
Iron ore price has gained 0.1 per cent at US$96.80.
Iron ore futures are eyeing a fall of 0.1 per cent.
Light crude is US$0.14 down at US$58.24 a barrel.
One Australian dollar is buying 68.41 US cents.