The Bull

Friday 19

October, 2018 8:22 PM



CommSec Daily Report Monday

CommSec Daily Report Monday

Aussie shares remain under pressure, with the ASX 200 down 0.5 per cent and sitting near four month lows due to losses from mining and energy stocks.

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28.05.2018 12:37 PM

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Aussie shares remain under pressure, with the ASX 200 down 0.5 per cent and sitting near four month lows due to losses from mining and energy stocks. This marks the seventh time in eight days local shares are down following softer US markets, slumping commodity prices and a number of geopolitical risks.

The price of oil fell by ~4 per cent on Friday on news Russia and Saudi Arabia are discussing potentially scaling back production cuts which have in recent times helped lift oil prices to three and a half year highs. This is ahead of a key meeting of oil producing nations scheduled for 22 June. Woodside Petroleum (WPL) is down 3 per cent, while Santos (STO), Oil Search (OSH) and Caltex (CTX) are falling by 2 per cent. BHP Billiton (BHP) – which also has an energy business – is the main weight, dropping by 2.7 per cent at lunch.

Fortescue Metals (FMG) has approved the development of the Eliwana mine and rail project in Western Australia’s Pilbara region. The iron ore miner said this would help keep costs low and supply a premium product. The project is expected to cost ~US$1.275bn to develop, will add 143 kilometres of rail and processing facility. Production is flagged to commence in December 2020.

Metcash (MTS) is down 13 per cent after warning of the potential loss of $270m in annual sales in South Australia. Drakes Supermarkets said it would not commit to using MTS’ new distribution centre once the current agreement expires in June 2019.

Outdoor advertiser, APN Outdoor (APO) is up 9 per cent after upgrading revenue expectations. It now expects mid-single digit revenue growth over the first half (previously flagged lowsingle digit growth) and FY18 underlying earnings between $92-$96m.

Plumbing products supplier Reliance Worldwide (RWC) is up 19 per cent after raising almost $1bn to help pay for the acquisition of UK plumbing group, John Guest.

Property group, Investa (IOF) is surging by 10 per cent after receiving a US$2.37bn takeover offer from investment giant Blackstone.

1.2bn shares have changed hands so far worth $2bn. 478 stocks are up, 516 down and 384 are unchanged.

Tonight, sharemarkets in both the UK and US will remain closed due to public holidays.

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