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Monday 20

November, 201711:12 AM



CommSec Daily Report Wednesday

CommSec Daily Report Wednesday

The Australian market is off to a slow start, with some profit taking pushing the ASX 200 0.1 per cent lower.

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08.11.2017 12:38 PM

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The Australian market is off to a slow start, with some profit taking pushing the ASX 200 0.1 per cent lower. Despite the weakness the index surged by 1 per cent yesterday (best day in a month) and closed above 6000pts for the first time in almost a decade. It will be interesting to see if the ASX 200 can hold above 6000pts in coming days or if it will be too much too soon for the market. National Bank (NAB) trades ex-dividend on Thursday while both Westpac (WBC) and ANZ will trade ex-dividend next Monday. This is likely to be a weight on Aussie equities.

After a standout performance on Tuesday thanks to a massive lift in commodity prices, mining stocks are back down to earth today. BHP Billiton (BHP), Rio Tinto (RIO), Fortescue Metals (FMG) and South32 (S32) are all down by ~1.5 per cent.

Iron ore and gold prices fell by ~0.5 per cent last night while oil prices eased slightly from two-year highs. The price of oil has improved strongly recently on reports major producers are open to extending an agreement to sideline supply past the March 2018 expiry.

Financials are mixed with Commonwealth Bank (CBA) boosting the market most after a 6 per cent lift in 1Q cash profit to $2.65bn. The NIM was higher over the quarter and loan impairments were $198m. Not including CBA’s gains, the market would be down twice as much.

Macquarie (MQG) is out of favour with investors for a second day after trading ex-dividend on Tuesday for its $2.05/share distribution. This means those buying shares in MQG today will not be eligible to receive the next dividend on 13 December.

James Hardie (JHX) is expanding its footprint in Europe by paying €473m in cash (~A$720m) to buy a German building products company called Fermacell. JHX shares are down 2.8 per cent.

There are reports that Telstra (TLS) has offered to refund ~42,000 customers for slow NBN following an investigation by the ACCC.

Ardent Leisure (AAD) said it is trading broadly in line with expectations so far this year however its CEO and Managing Director Mr Simon Kelly has announced his resignation.

BT Investment (BTT) is up 1.5 per cent after lifting its cash profit by almost 11 per cent over the past year to $173.1m.

No major economic data is set for release in Australia today. China’s latest trade numbers for October is expected to be out today however. The focus will be on imports to our largest trading partner.

2.5bn shares have changed hands so far today worth $2.1bn. 428 stocks are up, 546 are down and 363 are unchanged.

Originally published by CommSec
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