ASX dips two-week low, Pexa up 0.1% on debut, gold shines: ASX closed 0.7% lower

Market Reports

by Melissa Darmawan

  • Email Alerts for:
The Australian sharemarket started the new financial year in negative territory with the S&P/ASX 200 down 0.7 per cent or 47.4 points lower at 7,266, its lowest close in two weeks.

All the sectors were in the red except Materials which eked up 0.1 per cent while Technology closed flat.

Banks got a bit of a mention today with announcements from Australia’s oldest bank, Westpac (ASX:WBC) and Bank of Queensland (ASX:BOQ). Westpac closed 0.6 per cent lower at $25.65 on news of completing its sale of their general insurance business to Allianz. Bank of Queensland (ASX:BOQ) fell 1.4 per cent as they announced the completion of Members Equity Bank for $1.325 billion.

Pexa Group (ASX:PXA) rose ever so slightly on its debut on the local bourse, added 0.1 per cent at $17.15 after listing at $17.13.

In the buy now pay later space, ZipCo (ASX:Z1P) closed 1.7 per cent higher at $7.70. They announced a partnership to provide its buy now pay later services to small business fintech Propell (ASX:PHL). This company helps small and medium businesses with cash flow through a range of finance products. Propell Holdings (ASX:PHL) skyrocketed 43 per cent higher to close at $0.15. To its peers, Sezzle (ASX:SZL) jumped 2.3 per cent while Afterpay (ASX:APT) gained 0.8 per cent.

Gold miners had a glimmer today with Regis Resources (ASX:RRL) shined 8.05 per cent higher to $2.55 while Northern Star (ASX:NST) added 3.7 per cent as Evolution Mining (ASX:EVN) and Newcrest Mining (ASX:NCM) rose over 2 per cent.

Mining giants closed mixed with Fortescue Metals (ASX:FMG) added 1.1 per cent while BHP (ASX:BHP) and Rio Tinto (ASX:RIO) shed over 0.5 per cent.

The ongoing bid from Kerry Stokes’ Seven Group Holdings (ASX:SVW) to Boral (ASX:BLD) continues as Boral recommended sharesholders to reject the improved takeover offer. Boral (ASX:BLD) closed 0.2 per cent higher at $7.36.

Plenty of news from market players on new acquisitions and completion of mergers, though not enough to set the new financial year afloat.

Futures

The Dow Jones futures are pointing to a rise of 62 points.
The S&P 500 futures are pointing to a rise of 7.25 points.
The Nasdaq futures are pointing to a rise of 4.25 points.
The SPI futures are pointing to a fall of 29 points when the market next opens.

Local economic news

Australian Bureau of Statistics (ABS) have released international trade data for May. Australia’s seasonally adjusted balance on goods and services surplus increased by $1.52 billion to $9.68 billion in May. Exports rose by $2.44 billion to $42.2 billion while imports rose by $919 million to $32.55 billion.

The ABS also released job vacancies figures. In May, job vacancies were 57 per cent higher than February 2020, prior to the start of the pandemic, according to new seasonally adjusted.

The CoreLogic Home Value index rose 1.9 per cent in June, it’s 13.5 per cent annually.

The seasonally adjusted IHS Markit Manufacturing Purchasing Managers’ Index dropped from May’s record high of 60.4 down to 58.6 in June.

The AiGroup Performance of Manufacturing index rose by 1.4 points to 63.2 points, its strongest level since 1992.

Company news

Please join us at Stocks of the Hour here.

Global engineering provider Worley (ASX:WOR) has been awarded two operations and maintenance services contracts for a portfolio of its wind farms in Victoria by a subsidary of Pacific Hydro.

Aussie REIT’s manager Charter Hall Long WALE REIT (ASX:CLW) is set to acquire three and upgrades its 2022 financial year earnings forecast.

Global online real estate advertising company REA Group (ASX:REA) has completed their acquisition of Mortgage Choice Limited REA Group.

Property manager Abacus (ASX:ABP) has exchanged contracts to acquire a one third interest in “Myer Melbourne” in Victoria for $135.2 million while Charter Hall and Vicinity keep their piece of the pie.

Intellectual property services provider IPH Limited (ASX:IPH) adds online automated trademark platform Applied Marks for $5 million, with a further $2.1 million subject performance benchmarks.

Adelaide based cementer Adbri Limited (ASX:ABC) has inked a deal to purchase the Milbrae concrete and aggregate business under their Mawsons joint venture name, though kept its purchase price private.

Australia’s oldest bank Westpac (ASX:WBC) has completed its $725 million sale of their general Insurance business to Allianz and entered into an exclusive 20-year agreement for the distribution of general insurance products to Westpac’s customers.

Employment marketplace provider SEEK (ASX:SEK) appoints Ian Narev as chief executive officer.

Global infrastructure company Lendlease (ASX:LLC) has issued a lowered profit update for financial year 2021 of $375 million to $410 million due to the looming effects of the Covid-19 pandemic.

New Zealand’s largest and busiest airline hub Auckland Airport (ASX:AIA) is maintaining its prudent approach to financial management while it prepares for international passenger recovery.

Magellan has announced its intention to transition its Magellan High Conviction Trust (ASX:MHH) listed investment company into an active ETF.


Best and worst performers

The best-performing sector was Materials, up 0.08 per cent. The worst-performing sector was Consumer Discretionary, down 1.30 per cent.

The best-performing stock in the S&P/ASX 200 was Regis Resources (ASX:RRL), closing 8.05 per cent higher at $2.55. It was followed by shares in St Barbara (ASX:SBM) and Nuix (ASX:NXL).

The worst-performing stock in the S&P/ASX 200 was Chalice Mining (ASX:CHN), closing 5.93 per cent lower at $6.98. It was followed by shares in Iluka Resources (ASX:ILU) and Metcash (ASX:MTS).

Asian markets

Japan's Nikkei has lost 0.40 per cent.
Hong Kong's Hang Seng is closed for Special Administrative Region Establishment Day.
China's Shanghai Composite has gained 0.27 per cent.

Commodities and the dollar

Gold is trading at US$1777.26 an ounce.
Iron ore is 0.80 per cent higher at US$214.08 a ton.
Iron ore futures are pointing to a rise of 2.21 per cent.
Light crude is trading $0.25 higher at US$73.72 a barrel.
One Australian dollar is buying 74.82 US cents.


Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.