Australia officially in recession: ASX closes 1.8% hgiher

Market Reports

by Rachael Jones

It has been a positive day of trade for the Australian share market the local bourse managed to close 1.8 per cent higher. As for the sectors today all were in the green. The Reserve Bank of Australian report a 7 per cent fall in June quarter GDP – the biggest since records started in 1959. Australia is now officially in recession for the first time in 29 years.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 110 points higher to finish at 6,063.

Futures market

Dow futures are suggesting a rise of 132 points.
S&P 500 futures are eyeing a rise of 13 points.
The Nasdaq futures are eyeing a gain of 77 points.
And the ASX200 futures are eyeing a 114 point rise tomorrow morning.

Company news

Lendlease (ASX:LLC) intends to purchase approximately 2,400,000 Lendlease securities on market for the purpose of funding employee awards, with an aggregate value substantially lower than the prior year. The actual number of securities purchased will vary depending on the price paid for the securities. The purchase will start today conclude once the aggregate value is achieved, expected to be prior to 16 September 2020. Shares in Lendlease (ASX:LLC) closed 2 per cent higher at $12.12.

Cardinal Resources (ASX:CDV) notes that Nordgold have increased the Offer Price in respect of their takeover bid from $0.66 to $0.90 cash per share.

IOOF Holdings (ASX:IFL) is pleased to announce that it has successfully completed the institutional component of the capital raising The placement and the Institutional Entitlement Offer, together raised approximately $734 million.

Best and worst performers of the day

The best performing sector was Consumer Discretionary adding 2.5 per cent while the worst performing sector was Infotech, with the fewest gains adding 0.7 per cent.

The best performing stock in the S&P/ASX 200 was GWA Group (ASX:GWA), rising 8.2 per cent to close at $2.65. Shares in Southern Cross Media Group (ASX:SXL) and United Malt Group (ASX:UMG) followed higher.

The worst performing stock in the S&P/ASX 200 was IOOF Holdings (ASX:IFL), dropping 16.1 per cent to close at $3.58. Shares in Whitehaven Coal (ASX:WHC) and Medibank Private (ASX:MPL) followed lower.

Asian markets

Higher: Japan’s Nikkei has added 0.5 per cent, Hong Kong’s Hang Seng has added 0.1 per cent and the Shanghai Composite has also added0.1 per cent.

Commodities and the dollar

Gold is trading at US$1,964 an ounce.
Iron ore price is 1.4 higher at US$124.66.
Iron ore futures are pointing to a rise of 0.2 per cent.
Light crude is US$0.35 higher at US$43.76 a barrel.
One Australian dollar is buying 73.57US cents.