Coronavirus damage less severe than expected: Aus shares close 0.1% lower

Market Reports

by Michael Luu

The Australian share market has fluctuated throughout the day, forming a seesaw pattern before diving 0.1 per cent towards the end of trade. The Reserve Bank of Australia released minutes from its September meeting, suggesting that the COVID-19 damage to the economy has not been as severe as previously anticipated and “a recovery was under way in most of Australia”.

China has marked its rapid recovery with a 5.6 per cent year-on-year growth of industrial production and 0.5 per cent rise in retail sales. This news from Australia’s biggest trade partner along with new RBA data strengthened the Aussie Dollar above the 73-US cent mark.

Mining corporations were among the best performing stocks today, while losses in the big 4 banks weighed down the market

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 5 points down to finish at 5,895

Futures market 

Dow futures are suggesting a rise of 89 points.
S&P 500 futures are eyeing a rise of 12 points.
The Nasdaq futures are eyeing a lift of 50 points.
And the ASX200 futures are eyeing a 15 point fall tomorrow morning.

Local economic news

Residential property prices fell 1.8 per cent in the June quarter, that’s according to figures released today by the Australian Bureau of Statistics (ABS).

The falls in residential property prices were led by Sydney, falling 2.2 per cent and Melbourne, falling 2.3 per cent.

Head of Prices Statistics at the ABS, Andrew Tomadini has attributed these falls to “the effects of COVID-19 on the property market".

Company Headlines

Global leader in allogeneic cellular medicines for inflammatory diseases, Mesoblast (ASX:MSB), today announced that its lead product candidate remestemcel-L has been selected as the winner of the Fierce Innovation Awards - Life Sciences Edition 2020 for Biotech Innovation.

Australian spodumene and tantalum concentrate producer, Pilbara Minerals (ASX:PLS) has completed and executed the finance documents supporting the senior secured US$110M Finance Facility with BNP Paribas and the Clean Energy Finance Corporation (CEFC).

Electro Optic Systems Holdings (ASX:EOS) has secured two contracts totalling $4.25 million for the supply of R400 Remote Weapon Systems to a European NATO country.

Best and worst performers of the day

The best performing sector was REITs adding 1.9 per cent while the worst performing sector was Energy shedding 1.7 per cent.

The best performing stock in the S&P/ASX 200 was Silver Lake Resources (ASX:SLR), rising 8.2 per cent to close at $2.50. Shares in Northern Star Resources (ASX:NST) and Perseus Mining (ASX:PRU) followed.

The worst performing stock in the S&P/ASX 200 was SkyCity Entertainment Group (ASX:SKC), dropping 5 per cent to close at $2.65 cents. Shares in Cleanaway Waste Management (ASX:CWY) and Oil Search (ASX:OSH) followed lower.

Asian markets are mixed

Japan’s Nikkei has lost 0.5 per cent, Hong Kong’s Hang Seng also gained 0.2 per cent and the Shanghai Composite is 0.1 per cent up.

Commodities and the dollar

Gold is trading at US$1,966 an ounce.
Iron ore price added 1.4 per cent to US$130.17.
Iron ore futures are pointing to a fall of 0.7 per cent.
Light crude is US$0.01 down at US$37.98 a barrel.
One Australian dollar is buying 73.29 US cents.