First remuneration report strike for Freedom Foods (ASX:FNP): Aus shares down 2.9% over week

Market Reports

by Katrina Bullock

Aussie shares ended lower today, deepening yesterday’s sell off. Energy stocks were the hardest hit, dropping over 2 per cent as the iron price weakened. At the closing bell the S&P/ASX 200 index closed 42 points or 0.6 per cent lower to finish at 6,607. Over the week, the market has lost 2.9 per cent or 193 points.

Futures markets 

Dow futures are suggesting a fall of 298 points.
S&P 500 futures are eyeing a fall of 45 points.
The Nasdaq futures are eyeing a drop of 188 points.
And the ASX200 futures are eyeing a 44 point fall on Monday morning.

Local economic news

Today, the Reserve Bank of Australia published data on private sector credit for the month of December. Total credit rose 0.3 per cent during the month and was up 1.8 per cent year on year. Housing credit drove the increase, up 3.5 per cent for the year.

The Australian Bureau of Statistics released producer prices for the December quarter today. Final demand (excluding exports) was up 0.5 per cent during the quarter, falling short of the 0.7 per cent consensus. Year on year demand fell 0.1 per cent.

Broker moves

Morgan Stanley rates Pacific Smiles Group (ASX:PSQ) as overweight, with a 12 month price target of $3.00. After a strong first half trading update with two earnings upgrades, the market cap is now almost 30 per cent higher than it was last November. The broker also expects an increase in the stock’s liquidity in the coming year. Shares in Pacific Smiles Group (ASX:PSQ) closed flat at $2.60.

Company news

Freedom Foods Group (ASX:FNP) chalked up its first strike against the remuneration report at today’s AGM. 34 per cent of investors voted down the report. Majority shareholder Anthony Perich was re-elected to the board after the news this morning that his family’s personal investment vehicle, Arrovest Pty Ltd would invest $200 million as part of the company’s recapitalisation. Genevieve Gregor, Jane McKellar and Timothy Bryan were also elected to the board. This follows a writedown over $590 million for the troubled company. Shares in Freedom Foods Group (ASX:FNP) last traded at $3.01.

Shares in Lynas Rare Earths (ASX:LYC) jumped this morning after it announced that sales revenue rose to a record $119.4 million in the December quarter.

Subscription meal kit provider, Marley Spoon (ASX:MMM) says revenue in the fourth quarter came to €69 million, up 95 per cent on the prior corresponding period.

Shares in BlueScope Steel (ASX:BSL) were on the rise today, after it announced that it expects earnings before interest and tax for the first half of the 2021 financial year to be around $530 million.

Pizza delivery giant, Domino's Pizza Enterprises (ASX:DMP) has promised to voluntarily return $792,000 of JobKeeper payments to taxpayers after strong yearly results.

IPOs

Pentanet (ASX:5GG) started trading today. The telecommunications and internet services provider floated with an issue price of $0.25, opened at $0.74 and closed at $0.59.

Wall Street

Wrapped up our four trading days this week lower: The Dow Jones lost 1.3 per cent, The S&P 500 shed 1.4 per cent and the tech heavy Nasdaq lost 1.5 per cent.

Best and worst performers of the day

The best performing sector was Health Care, closing 1.4 per cent higher, while the worst-performing sector was Energy, shedding 2.4 per cent.

The best-performing stock in the S&P/ASX 200 was Service Stream (ASX:SSM), rising 10.1 per cent to close at $1.91. Shares in Domain Holdings Australia (ASX:DHG) and Pro Medicus (ASX:PME) followed.

The worst-performing stock in the S&P/ASX 200 was Kogan.com (ASX:KGN), dropping 8.5 per cent to close at $17.99. Shares in InvoCare (ASX:IVC) and Mineral Resources (ASX:MIN) followed.

Asian markets

Japan’s Nikkei has lost 1.5 per cent, Hong Kong’s Hang Seng has gained 0.1 per cent, and the Shanghai Composite has gained 0.2 per cent.

Commodities and the dollar

Gold is trading at US$1,844 an ounce.
Iron ore price lsot 5.5 per cent to US$157.42.
Iron ore futures are pointing to a fall of 2.2 per cent.
Light crude is US$0.02 down at US$49.87 a barrel.
One Australian dollar is buying 76.47 US cents.
 

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