Australian Performance of Services Index plunges 11.6 points: Aus shares close 0.4% lower

Market Reports

by Ortenzia Borre

The Australian share market rose ever so slightly at the open before falling sharply by noon and continuing to stay down closing 0.4 per cent down at the end of today's trade. PolyNovo (ASX:PNV) led the top 200 gains at for the session, up almost 8 per cent, and Bingo Industries (ASX:BIN) led the losses for the day.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 21 points lower to finish at 5,364.

Futures market 

Dow futures are suggesting a rise of 175 points.
S&P 500 futures are eyeing a lift of 22 points.
The Nasdaq futures are eyeing a rise of 83 points.
And the ASX200 futures are eyeing a 26 point fall tomorrow morning.

Local economic news 

The AiGroup has reported Australia's services industries continue to struggle through a difficult period of pandemic-related closures and restricted activity, with the Australian Industry Group Australian Performance of Services Index plunging 11.6 points to 27.1 in April – both the largest single monthly fall and the lowest result in the history of the series.

Broker moves

UBS has rated Domain Holdings Australia (ASX:DHG) as a Buy. The company has noticed new listing volumes have flattened over recent days. Additionally, the recent relaxation of social distancing in Western Australia has benefited listings. Yields increased across all geographies in March. Management remains adamant that the company is not losing share to REA Group and has emphasised strong support from its lenders, to key concerns of UBS. Buy rating and $3.30 target maintained. Shares in Domain Holdings Australia (ASX:DHG) closed 1.1 per cent higher at $2.88.

Looking at some more headlines:

CSL (ASX:CSL) prices a new $1.7 billion private placement.

BHP (ASX:BHP) has appointed two new independent non-executive directors.

Link (ASX:LNK) says areas of its business has been hit by the COVID-19 pandemic.

Best and worst performers of the day

The best performing sector was Information Technology adding 0.7 per cent while the worst performing sector was Financials shedding 1.5 per cent.

The best performing stock in the S&P/ASX 200 was PolyNovo (ASX:PNV), rising 7.9 per cent to close at $2.60. Shares in Ooh! Media (ASX:OML) and Virgin Money UK (ASX:VUK) followed.

The worst performing stock in the S&P/ASX 200 was Bingo Industries (ASX:BIN), dropping 5.5 per cent to close at $2.05 cents. Shares in ALS (ASX:ALQ) and Cooper Energy (ASX:COE) followed lower.

Asian markets

Mixed: Japan’s Nikkei has added 0.3 per cent, Hong Kong’s Hang Seng lost 0.6 per cent and the Shanghai Composite is 0.1 per cent down.

Commodities and the dollar

Gold is trading at US$1,686 an ounce.
Iron ore price added 0.4 per cent to US$84.35.
Iron ore futures are pointing to a rise of 1.6 per cent.
Light crude is US$0.31 down at US$25.31 a barrel.
One Australian dollar is buying 64.42 US cents.