Tech continues to tumble: Aus shares set for lacklustre start

Market Reports

by Anna Napoli

Local shares are set for a flat start following a mixed finish on Wall Street on Friday. US tech stocks continued to slide on Friday posting their biggest weekly loss since March with Facebook, Apple and Netflix all shedding over 5 per cent over the week. Local tech stocks could come under pressure today as investors await a meeting of the US federal Reserve as well as economic data due out of China. Meanwhile, the big miners may receive a boost on the back of solid gains in the iron ore price that saw Rio Tinto and BHP higher in London trade. Oil prices edged higher on Friday as equities markets firmed, but crude remained on track for a second weekly drop as investors expected a global glut to persist if demand weakens further with rising COVID-19 cases in some countries.

Local economic news

Today the Australian Bureau of Statistics (ABS) issues provisional data on overseas travel during August. On Tuesday, the Commonwealth Bank (CBA) releases its weekly data on credit and debit card spending and ANZ-Roy Morgan issues weekly consumer sentiment data. Also on Tuesday, CBA releases its August Household Spending Intentions report and the ABS issues the June quarter figures on residential property prices. Also on Tuesday, the Reserve Bank issues minutes of the Board meeting held on September 1. At that meeting the Board decided to extend and enhance the Term Funding facility. On Thursday the week’s stand-out data is released the August Labour Force figures. Also on Thursday the Reserve Bank issues the latest quarterly Bulletin – a publication that includes timely articles on economic and financial issues. And a speech is delivered by Marion Kohler, Head of the Reserve Bank’s Domestic Markets Department, at the Australian Financial Markets Association (AFMA) conference.


Wall Street closed mixed on Friday: The Dow Jones Industrial Average gained 0.5 per cent to close at 27,666, the S&P 500 added 0.1 per cent to close at 3341 and the NASDAQ closed 0.6 per cent lower at 10,854.

European markets closed mixed: London’s FTSE gained 0.5 per cent, Paris added 0.2 per cent and Frankfurt closed 0.1 per cent lower.

Asian markets closed higher, Nikkei added 0.7 per cent, Hong Kong’s Hang Seng gained 0.8 per cent and China’s Shanghai Composite closed 0.8 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 0.1 per cent gain.

On Friday, the Australian share market fell 49 points to close at 5859.

Company news

Asia Pacific Village Group has been given the green light from the New Zealand Overseas Investment Office (OIO) acquire 100 per cent of Metlifecare (ASX:MEQ) the remaining key conditions are the approval of the Scheme by Metlifecare’s shareholders and approval by the High Court. If the remaining conditions of the Scheme are satisfied, the acquisition is expected to complete on 29 October 2020


Breville Group Ltd (ASX:BRG) is paying 20.5 cents 60 per cent franked
Chorus Limited (ASX:CNU) is paying 12.7134 cents unfranked
F.F.I. Holdings (ASX:FFI) is paying 13 cents fully franked
HUB24 Ltd (ASX:HUB) is paying 3.5 cents fully franked
Mercury NZ Limited (ASX:MCY) is paying 8.5168 cents unfranked
Over The Wire Ltd (ASX:OTW) is paying 2.25 cents fully franked
Sandfire Resources (ASX:SFR) is paying 14 cents fully franked
SG Fleet Group Ltd (ASX:SGF) is paying 3.053 cents fully franked
Tassal Group Limited (ASX:TGR) is paying 9 cents 25 per cent franked
Wcm Global Growth (ASX:WQG) is paying 2 cents 50 per cent franked


One Australian Dollar at 7:40 AM was buying 72.83 US cents, 56.93 Pence Sterling, 77.28 Yen and 61.54 Euro cents.


Iron Ore has gained 1.8 per cent to US$128.37.
Iron Ore futures suggest a 2.2 per cent gain.
Gold has dropped $16.40 to US$1948 an ounce.
Silver was down $0.43 cents to US$26.86 an ounce.
Oil has added $0.03 to US$37.33 a barrel. 

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