It has been a positive day of trade for the Australian share market. After opening behind the eight ball, the market rebounded in early trade and ended the day 0.3 per cent higher. Gold surged past the $US1,900 an ounce threshold today for the first time since 2011. Analysts warn that a second wave of COVID-19 lockdowns in Melbourne could spark another round of capital raisings as companies look to strengthen their balance sheet during earnings season.
The S&P/ASX200 index
At the closing bell the S&P/ASX 200 index closed 20 points higher to finish at 6,044.
Over the week, the market has lost/gained xx points or 0.9 per cent.
Dow futures are suggesting a rise of 96 points.
S&P 500 futures are eyeing a rise of 11 points.
The Nasdaq futures are eyeing a lift of 57 points.
And the ASX200 futures are eyeing a 5 point rise tomorrow morning.
Commsec has released its quarterly State of the States report. For the first time in over a decade Tasmania is number one in terms of economic rankings, followed by Victoria, the Australian Capital Territory then New South Wales. The State of the States survey is based on 8 economic indicators, and Tasmania ranked first in 4 of them - relative population growth, relative unemployment, equipment investment and retail trade.
Reserve Bank assistant governor Chris Kent addressed Kanganews this morning and says that the RBA’s intervention in debt markets has “worked well” and “contributed to a noticeable improvement in market sentiment and…financial conditions”. He expects an acceleration in take-up of the RBA’s Term Funding Facility (TFF) as the September 30 expiry date approaches. The TFF provides 3-year funding to banks at a cost of 0.25% backed by assets on their balance sheet. Banks have been slow to take up the TFF, so far only $26 billion, or around 17 per cent of the total $150 billion on offer has been allocated.
Credit Suisse rates Domain Holdings (ASX:DHG) as an outperform with a 12 month price target of $3.60. The broker still expects a recovery in Sydney and Melbourne property markets which would support volumes. While the second round of restrictions in Melbourne is likely to have a disproportionate impact on Domain Holdings as opposed to REA Group the broker believes the impact will be less significant than it was back in April. Shares in Domain Holdings (ASX:DHG) closed 2.2 per cent higher at $3.31.
Ingenia Communities Group (ASX:INA) has today acquired the waterfront Sunnylake Shores lifestyle community on the NSW Central Coast for around $16 million. The company closed the 2020 financial year with 325 new home settlements and 179 deposits and contracts on hand. Ingenia Communities Group CEO, Simon Owen says “this strong result is just below the record 336 settlements achieved in the 2019 financial year” and that the company is “continuing to see demand for homes across [its] communities under development with a further 179 contracts and deposits in place supporting future settlements.” Shares in Ingenia Communities Group (ASX:INA) closed flat at $4.60.
Buy now, pay later provider, Sezzle (ASX:SZL) has posted a positive operating cashflow of US$4.3 million for the June quarter. This follows cash outflow of US$1.3 million in the prior quarter.
Wholesale distribution and marketing company, Metcash (ASX:MTS) has penned a binding agreement to acquire a 70 per cent interest in Total Tools Holdings for ~$57 million.
Gold producer and explorer, St Barbara (ASX:SBM) has agreed to acquire Moose River Resources Incorporated through its wholly owned subsidiary Atlantic Mining.
Infant formula producer, Bubs Australia (ASX:BUB) has released its quarterly activities report for the period ended 30 June 2020. Full year gross revenue increased 32 per cent to $62 million.
Best and worst performers of the day
The best performing sector was Materials adding 1.6 per cent while the worst performing sector was Utilities, shedding 0.7 per cent.
The best performing stock in the S&P/ASX 200 was Lynas Corporation (ASX:LYC), rising almost 12 per cent to close at $2.43. Shares in Resolute Mining (ASX:RSG) and Saracen Mineral Holdings (ASX:SAR) followed higher.
The worst performing stock in the S&P/ASX 200 was Insurance Australia Group (ASX:IAG), dropping 5.3 per cent to close at $5.04. Shares in Corporate Travel Management (ASX:CTD) and Clinuvel Pharmaceuticals (ASX:CUV) followed lower.
Mixed: Japan’s Nikkei has lost 0.2 per cent, Hong Kong’s Hang Seng has lost 0.4 per cent and the Shanghai Composite has gained 0.3 per cent.
Commodities and the dollar
Gold is trading at US$1,934 an ounce.
The iron ore price fell 0.7% per cent to US$109.39.
Iron ore futures are pointing to a fall of 2.1 per cent.
Light crude is US$0.18 lower at US$41.11 a barrel.
One Australian dollar is buying 71.27 US cents.