Downer EDI (ASX:DOW) wins $450m Fortescue (ASX:FMG) contract: ASX closes 2.9% higher

Market Reports

by Rachael Jones

The Australian share market has recorded its best session in seven weeks as it exits a bear market. The local bourse managed to close 2.9 per cent higher. Shares in Southern Cross Media Group (ASX:SXL) saw a rise today but shares Sandfire Resources (ASX:SFR) fell despite yesterday’s announcement of significant copper-silver mineralisation results from it’s project in Botswana. Afterpay (ASX:APT) shares hit $50 today they close at the $49 mark -a record high. As for the sectors today Real Estate Investment Trust led the day and Utilities fell lower.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 164 points higher to finish at 5,780.

Futures market

Dow futures are suggesting a rise of 219 points.
S&P 500 futures are eyeing a rise of 22 points.
The Nasdaq futures are eyeing a lift of 67 points.
And the ASX200 futures are eyeing a 158 point rise tomorrow morning.

Company news

Downer EDI (ASX:DOW) is expanding its relationship with Fortescue Metals Group (ASX:FMG) through the provision of Early Mining and Maintenance Services at Eliwana iron ore mine, located in the Pilbara region of Western Australia. The new agreement is valued at approximately $450 million over five years. This is the second Eliwana project package to be executed by Downer, the first being the Bulk Earthworks contract which started last year. Under the agreement, Downer will complete early works operations over two years as the mine site is established. Shares in Downer EDI (ASX:DOW) closed 6.8 per cent higher at $4.56.

Coca-Cola Amatil (ASX:CCL) released their trading update for April today showing the volume of beverage sold still fell 33 per cent that month. The company was hit by lockdown measures during its peak Easter, ANZAC Day and Ramadan trading period.

The Cann Group (ASX:CAN) has executed two new export supply agreements with European and UK partners for the supply of a range of medicinal cannabis formulated oil and dried flower products for sale in Germany, The United Kingdom and other European Union markets. These products are to be manufactured by IDT.

Best and worst performers of the day

The best performing sector was Real Estate Investment Trust adding 4.6 per cent while the worst performing sector was Utilities, gained the least at 1 per cent.

The best performing stock in the S&P/ASX 200 is Southern Cross Media Group (ASX:SXL) rising 15.6 per cent to $0.18, followed by shares in Unibail-Rodamco-Westfield (ASX:URW) and SmartGroup Corp (ASX:SIQ).

The worst performing stock in the S&P/ASX 200 is Pinnacle Investment Management Group (ASX:PNI) dropping 2.6 per cent to $4.05, followed by shares in Graincorp Group (ASX:GNC) and Mayne Pharma Group (ASX:MYX)

Asian markets

Higher: Japan’s Nikkei has added 2.6 per cent, Hong Kong’s Hang Seng has added 2.2 per cent and the Shanghai Composite has added 0.8per cent.

Commodities and the dollar

Gold is trading at US$1,733 an ounce.
Iron ore price is flat at US$97.65.
Iron ore futures are pointing to a fall of 1 per cent.
Light crude is US$0.60 up at US$35.19 a barrel.
One Australian dollar is buying 65.82 US cents.

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