China's recovery slower than expected: Aus shares close 0.9% higher

Market Reports

by Katrina Bullock

The Australian share market opened flat, rose in early trade and tracked sideways for most of the day to end 0.9 per cent higher. All of the sectors, except REITs made ground today. China’s economy continues to recover strength following the pandemic, however the pace is slower than expected. China’s GDP for the third quarter grew 4.9 per cent year on year, slower than the expected 5.2 per cent growth. It grew 2.7 per cent quarter on quarter, compared to the consensus forecasts of a 3.3 per cent rise.

At the closing bell the S&P/ASX 200 index closed 53 points higher to finish at 6,229.

Futures market

Dow futures are suggesting a rise of 170 points.
S&P 500 futures are eyeing a rise of 23 points.
The Nasdaq futures are eyeing a lift of 91 points.
And the ASX200 futures are eyeing a 63 point rise tomorrow morning.

Company news

One of Synlait Milk’s (ASX:SM1) subsidiaries, Dairyworks, has sold its Deep South brand and associated ice cream operations. The operations were sold for an undisclosed sum to Talleys Group. Dairywork’s CEO Tim Carter says that divesting the business enables Dairyworks to focus on its core business, explore new market opportunities, and deliver strong shareholder value. Shares in Synlait Milk (ASX:SM1) closed 0.8 per cent higher at $5.11.

Shares in Crown Resorts (ASX:CWN) took a dive today after news that AUSTRAC has launched an investigation in to the company and its anti-money laundering and counter-terrorism financing program.

Pacific Smiles (ASX:PSQ) has upgraded its outlook for the 2021 financial year. It now expects patient fee growth of approximately 20 per cent and EBITDA growth of 25 per cent.

Three of Clean Seas (ASX:CSS) independent non-executive directors - Nick Burrows, Raelene Murphy and outgoing chairman Terry O’Brien resigned today after holding different views from cornerstone shareholders about the company’s strategic direction.

Global engineering company Worley (ASX:WOR) has confirmed that it is eligible for the Bank of England Covid Corporate Financing Facility, for a $540 million commercial paper programme.

Best and worst performers of the day

The best performing sector was Information Technology adding 1.7 per cent while the worst performing sector was REITs, shedding 0.3 per cent.

The best performing stock in the S&P/ASX 200 was Cimic Group (ASX:CIM), rising 8.2 per cent to close at $22.59. Shares in Pro Medicus (ASX:PME) and Lynas Corporation (ASX:LYC) followed higher.

The worst performing stock in the S&P/ASX 200 was Crown Resorts (ASX:CWN), dropping 8.2 per cent to close at $8.25. Shares in Super Retail Group (ASX:SUL) and Magellan Financial Group (ASX:MFG) followed lower.

Asian markets

Mixed: Japan’s Nikkei has added 1.2 per cent, Hong Kong’s Hang Seng has added 0.7 per cent and the Shanghai Composite has lost 0.3 per cent.

Commodities and the dollar

Gold is trading at US$1,903 an ounce.
Iron ore price rose 0.3 per cent to US$119.08.
Iron ore futures are pointing to a fall of 1.5 per cent.
Light crude is US$0.06 lower at US$41.06 a barrel.
One Australian dollar is buying 70.90 US cents.