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Friday 21

September, 201812:15 PM



CommSec Daily Report Wednesday

CommSec Daily Report Wednesday

The Australian sharemarket has continued yesterday?s slide despite a solid lift in US markets overnight.

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11.07.2018 01:03 PM

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The Australian sharemarket has continued yesterday’s slide despite a solid lift in US markets overnight. After the US close, the US Trade Representative (USTR) proposed a list of $200 billion worth of Chinese imports to face a 10% tariff, on top of the initial round of tariffs, which has rattled global markets. The ASX 200 is down 40 points or 0.6% to 6217 points.

Financials are again the main contributor to losses for the local bourse with all four major lenders in the red around the 1% mark as funding pressures continue to rise. Westpac (WBC) is the best of the big four, down 0.75%. Despite the losses among the lenders, Bank of Queensland is bucking the trend, up 1%. Market participants will also eagerly await a speech this afternoon by APRA chair, Wayne Byres, on Australia’s mortgage lending environment.

Commodity stocks have also taken a hit with a mixed performance overnight. Crude oil lifted while base metals were mostly weaker on the London Metals Exchange (LME). Miners, BHP Billiton (BHP) and South32 (S32) are both 1% weaker while Rio Tinto (RIO) is down 2%. Origin Energy (ORG) and AGL Energy (AGL) are sliding 4% and 5.8% each with consumer watchdog, the ACCC recommending the federal government increase competition in the retail energy market to lower costs for consumers.

The only sectors with positive momentum are consumer facing stocks. Flight Centre (FLT) is up 4% on a broker upgrade while Woolworths (WOW) is 1% higher.

Mapping technology firm, Nearmap (NEA) is climbing another 5% after yesterday’s 21% jump on a strong preliminary result for FY18. Meanwhile, Village Roadshow (VRL) remains in a trading halt for the third straight day with the movie and theme park operator undertaking a $51 million capital raising to reduce its debt levels.

On the economic front, consumer confidence in July has lifted to 4.5 year highs while housing finance in May saw a slight drop in investment lending. The Aussie dollar remains under pressure but has regained some of its earlier losses to buy US74.25 cents.

So far, 1.2B units have traded worth $2.2B with 486 stocks higher, 516 lower and 369 unchanged.

Published by James Tao - Analyst (Author), CommSec
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