The Bull

Tuesday 27

June, 2017 1:34 PM



CommSec Daily Report Monday

CommSec Daily Report Monday

Local shares advanced in early trade on Monday continuing the trend of recent days for the ASX 200 which has seen the index rise in 6 of the last 7 sessions.

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19.06.2017 01:04 PM

Local shares advanced in early trade on Monday continuing the trend of recent days for the ASX 200 which has seen the index rise in 6 of the last 7 sessions. The positive domestic tone was at odds with US sharemarkets on Friday which ended the week in a mixed fashion. The Dow Jones ended higher by 24 points or 0.1% after trading in a 76-point range. The S&P 500 index rose by less than 0.1% and the Nasdaq lost almost 14 points or 0.2%. Over the week the Dow rose by 0.5%, the S&P 500 rose 0.1%, and the Nasdaq lost 0.9%.

Participation over the morning saw around 981 million transactions being measured by the ASX valued at $2.1 million. At lunch 510 shares were higher, 514 were lower and 382 were unchanged. Grocers and consumer facing names in general were running into headwinds following news at the weekend that Amazon.com had paid $13.7 billion for US grocer Whole Foods. The news revived concerns about the disruptive behemoth and what impact it could have domestically. Woolworths (WOW) shares fell 3.2% or 83 cents to $25.42, Coles’ owner Wesfarmers was 0.5% or 21 cents lower at $40.49 and grocery wholesaler Metcash (MTS) fell 1.8% or 4 cents to $2.10.

Several stocks were beneficiaries of broker upgrades including Southern Cross Media (SXL) which was almost 8% higher, whilst A2Milk (A2M) rose 5.5% as it continued to benefit from a tailwind after the group advised on Friday that in response to continuing strong demand for its infant formula, the group had been working with its manufacturing partner to increase production for the remainder of FY17 and as a result A2M upgraded its full year earnings forecasts.

Shares in McMillan Shakespeare (MMS) fell after media reports alleged impropriety in the group’s car warranty business, NWC. The Australian Financial Review indicated the MMS will be served with an $80 million class action alleging “unfair and unconscionable conduct and misleading and deceptive conduct” in NWC, which provides extended car warranties to the car industry. MMS shares were 8.4% or $1.17 lower at $12.81

Gold names were generally firmer over the morning. Newcrest Mining (NCM) announced that that it had invested a further US$40m in SolGold plc, following a US$41.2m capital raising by the London AIM-listed gold prospector. The latest move follows the initial investment made by NCM in October 2016, brining NCM’s
stake to 14.5% of SolGold, whose main asset is an 85% interest in the Cascabel project in Ecuador which is still in the exploration phase. NCM shares were lately at $21.45 for a gain of 17 cents or 0.8%.

Most major currencies rose against the US dollar at the weekend The Aussie dollar rose from US75.75 cents to US76.30 cents and ended US trade near US76.15 cents. In early regional trade the local unit was at US76.30 cents

Originally published by CommSec
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