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December, 2018 3:39 AM



CommSec Daily Report Tuesday

CommSec Daily Report Tuesday

After some technical issues were resolved in the first hour of the session at the Australian Stock Exchange

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13.03.2018 12:48 PM

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After some technical issues were resolved in the first hour of the session at the Australian Stock Exchange, the Aussie market is under some pressure. The ASX 200 is down by 0.6 per cent but has improved by more than 2 per cent over the prior three days. Earlier today indices were not updating correctly which the ASX corrected this morning. The index remains under 6000pts after rising above the level for the first time in two weeks yesterday.

Most of the major miners including BHP Billiton (BHP), Rio Tinto (RIO), South32 (S32) and Fortescue Metals (FMG) are down by more than 1 per cent following weakness in oil, iron ore, gold and most base metals.

Iron ore fell by 1.8 per cent or $1.25 to US$69/tonne, which takes the losses for the past week to ~9 per cent. This is partly due to oversupply concerns in China. Markets have been worried that our largest trading partner’s steel mills will struggle to clear excess steel inventory which has built up in anticipation of strong building after winter. The end of restrictions on steel production in China are also expected to be lifted this week.

The Labor party has flagged plans to make changes to dividend franking credits which ensures company profits (which have already been taxed) are not taxed again for shareholders. According to Labor, less than 1 per cent of pensioners will be affected and 92 per cent of taxpayers will not be impacted.

Newcrest Mining (NCM) remains an underperformer in the mining sectors, slipping by 2 per cent after sliding by 4.6 per cent yesterday. Australia’s largest gold miner had to temporarily shut its biggest mine in NSW (Cadia) due to issues with its tailings dam (which stores mining byproducts). It warned this will impact profit results.

McGrath (MEA) is flat a day after halving its profit expectations for FY18 to between $5-$5.5m (before one-off costs).

Business conditions have hit a record high of 20.8pts according to a survey by NAB which commenced in 1997. Confidence levels eased slightly to +9 (down from +11). A reading above 0.0 indicates more optimists than pessimists.

1.4bn shares have changed hands so far today worth $1.8bn. 419 stocks are up, 600 down and 394 are flat.
 
Published by CommSec

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