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CommSec Daily Report Wednesday

CommSec Daily Report Wednesday

Aussie shares are back in negative territory a day after putting an end to the market?s longest losing streak since early 2016.

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12.09.2018 12:55 PM

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Aussie shares are back in negative territory a day after putting an end to the market’s longest losing streak since early 2016. The ASX 200 is down by 0.1 per cent which makes it the index’s ninth fall in 10 sessions. Losses from mining stocks, banks and telcos are the main drags.

Miners are down partly on concerns of the US-China trade relationship. The US could impose tariffs on US$200bn of Chinese imports this week and potentially announce tariffs on a further US$267bn (which would cover all China exports to the US). Secondly the strength of the US dollar has pushed some commodity prices lower. With most commodities priced in the greenback, this makes it more expensive for nations outside the United States to buy resources.

Insurance companies are facing the Royal Commission this week and most of the big names are losing ground. Insurance Australia Group (IAG), Suncorp (SUN) and QBE Insurance (QBE) are all in negative territory.

Myer (MYR) is losing 6 per cent after announcing a below consensus set of annual results. The retailer announced a $486m loss for the year mainly due to write-downs and lower sales. Sales fell by 3 per cent and the department store owner has not declared a dividend.

Bega Cheese (BGA) has resumed trade after being in a trading half for two sessions. The dairy company has confirmed plans to raise $250m from investors to help pay down debt. Debt levels have jumped recently after buying a dairy processing facility in WA.

Sonic Health (SHL), Perpetual (PPT), CIMIC (CIM) and Regis Resources (RRL) are all down as they trade ex-dividend.

Energy stocks are among the winners at lunch following a firmer oil price which has jumped by 2.5 per cent on supply concerns. US sanctions on Iran are expected to come into full effect in two months while concerns of potential damage from Hurricane Florence in the US are also supporting prices.

The ACCC has given the green light for the $13bn sale of Australia’s biggest gas pipeline company APA Group (APA). APA shares are up 1 per cent.

1.3bn shares have changed hands so far today worth $2.4bn. 477 stocks are up, 488 down and 393 are unchanged.

Published by CommSec
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