Global events are expected to again contribute to Australian market values this week, with the international ructions between the US and China continuing to play out, the US reporting season underway, and UK Prime Minister Boris Johnson again attempting to persuade his parliamentary colleagues to back his EU Brexit deal. In Australia, more data on our labour force, manufacturing and the quarterly annual national accounts will also have an impact on the markets.
It follows a positive week which saw the S&P/ASX200 – the value of the top 200 companies on the Australian exchange – increasing by 0.66%, gaining for the second week in a row. The index ended the week at 6,650 points, still 225 points off its record high of 6875.5, set in July.
Last week’s major Australian economic news – the surprise fall in the official unemployment figure to 5.2% – reduced expectations of an imminent cash rate cut. This in turn led investors to sell.
| S&P and All Ords Movements (11/10/2019 to 18/10/2019) | ||
| Closing Points | % Change | |
| S&P/ASX 200 (XJO) | 6,650 | 0.66% |
| All Ordinaries (XAO) | 6,758 | 0.56% |
| Prepared by Canstar. Points taken as of Monday open to Friday close. | ||
What happened on the ASX last week?
Energy and healthcare shares were up
Energy and health care companies recorded the highest gains on the ASX last week (2.67% and 2.12% respectively). Health was boosted by biotechnology giant CSL (CSL), whose share price rose 2.6% to $250.97, creating the biggest jump in market capitalisation in the market.
Rises for big banks National Australia Bank (NAB), Macquarie Group (MCG) and the Commonwealth Bank (CBA) also lifted the overall market, contributing to a 1.69% increase in the financials sector.
Mining and materials stocks were down
The materials sector brought down the market, falling 2.68% as big-cap shares BHP Group (BHP), Newcrest Mining (NCM), and Fortescue Metals Group (FMG) slumped by 2.9%, 6% and 5.9% over the week. These generated the top three market losses.
The IT sector stocks declined by 1.03%.
| Sector Movements (11/10/2019 to 18/10/2019) | ||
| Closing Points | % Change | |
| Consumer Discretionary (XDJ) | 2,581 | 1.64% |
| Consumer Staples (XSJ) | 12,471 | 0.53% |
| Energy (XEJ) | 10,766 | 2.67% |
| Financials (XFJ) | 6,378 | 1.69% |
| Health Care (XHJ) | 37,757 | 2.12% |
| Industrials (XNJ) | 6,843 | 1.15% |
| Information Technology (XIJ) | 1,365 | -1.03% |
| Materials (XMJ) | 12,720 | -2.68% |
| Telecommunication Service (XTJ) | 1,268 | -0.08% |
| Utilities (XUJ) | 8,057 | -0.26% |
| Prepared by Canstar. Points taken as of Monday open to Friday close. | ||
Mapping a rise in the market
Aerial mapping and data company Nearmap Ltd (NEA) was the week’s biggest winner, bolting 17.1% higher to close the week at $2.95 after it released its annual report mapping the potential of the huge international market for its products and services. It has had a bumper year amid eager forecasts for the US market, but remains well down on its record high of $4.29, set in June.
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— Nearmap (@nearmap) September 2, 2019
The value of financial services company IOOF (IFL) increased by 16.6% to $7.30, after it announced it would pay $125 million less than anticipated for ANZ’s pensions and investment business, OnePath. And legal clouds cleared when regulator APRA said last week it would not appeal a Federal Court judgement clearing five IOOF executives and directors of breaching superannuation laws in the wake of the Banking Royal Commission.
UK bank company CYBG (CYB) rose by 14.4% amid the news of a possible Brexit deal, while investment management company Challenger (CGF) gained 13.3%.
Fisher & Paykel Healthcare Corporation (FPH) rose 10% after announcing it can now sell its Vitera sleep apnea mask on the US market, as well as lifting its revenue expectations.
But it wasn’t all good news
Market darling Afterpay Touch’s (APT) rise was dampened last week, with a gloomy broker report and the Reserve Bank raising regulatory issues over fees. Stocks in the buy-now pay-later company suffered a large decline of 15.6% as a result.
The announcement of a weak advertising market left investors selling out of Triple M and Hit radio station owner Southern Cross Media (SXL), whose share price dropped 22.7% to $0.89. It will also purchase a West Australian radio network, it was revealed last week.
Meanwhile, gold miner Northern Star (NST) fell 14.3% following a disappointing quarterly update, Clinuvel Pharmaceut (CUV) dropped 13.5% and Wisetech Global Ltd (WTC) lost 12.3%.
| ASX 200 – Top 5 Share Price Gains (11/10/2019 to 18/10/2019) | |||
| Rank | Company | Closing Share Price | % Change |
| 1 | Nearmap Ltd (NEA) | $2.95 | 17.1% |
| 2 | IOOF Holdings Ltd (IFL) | $7.30 | 16.6% |
| 3 | CYBG PLC (CYB) | $2.46 | 14.4% |
| 4 | Challenger Ltd (CGF) | $7.77 | 13.3% |
| 5 | Fisher & Paykel Healthcare Corporation (FPH) | $17.55 | 10.0% |
| Prepared by Canstar. Prices taken as of week to week close. | |||
| ASX 200 – Top 5 Share Price Losses (11/10/2019 to 18/10/2019) | |||
| Rank | Company | Closing Share Price | % Change |
| 1 | Southern Cross Media (SXL) | $0.89 | -22.7% |
| 2 | Afterpay Touch (APT) | $29.65 | -15.6% |
| 3 | Northern Star Resources (NST) | $10.15 | -14.3% |
| 4 | Clinuvel Pharmaceuticals (CUV) | $31.85 | -13.5% |
| 5 | Wisetech Global Ltd (WTC) | $30.00 | -12.3% |
| Prepared by Canstar. Prices taken as of week to week close. | |||
| ASX 200 – Top 5 Market Capitalisation Gains (11/10/2019 to 18/10/2019) | ||||
| Rank | Company | $ Change in Market Cap | Closing Share Price | % Change in Share Price |
| 1 | CSL Ltd (CSL) | $2,918,314,058 | $250.97 | 2.6% |
| 2 | National Aust. Bank (NAB) | $1,614,490,437 | $28.76 | 2.0% |
| 3 | Macquarie Group Ltd (MQG) | $1,569,887,749 | $133.82 | 3.4% |
| 4 | Commonwealth Bank (CBA) | $1,540,108,371 | $79.64 | 1.1% |
| 5 | Wesfarmers Ltd (WES) | $1,167,855,449 | $40.29 | 2.6% |
| Prepared by Canstar. Prices taken as of week to week close. | ||||
| Rank | Company | $ Change in Market Cap | Closing Share Price | % Change in Share Price |
| 1 | BHP Group Ltd (BHP) | -$3,034,226,936 | $34.79 | -2.9% |
| 2 | Newcrest Mining (NCM) | -$1,629,947,614 | $33.13 | -6.0% |
| 3 | Fortescue Metals Group (FMG) | -$1,601,061,758 | $8.29 | -5.9% |
| 4 | Afterpay Touch (APT) | -$1,380,662,708 | $29.65 | -15.6% |
| 5 | Wisetech Global Ltd (WTC) | -$1,342,769,396 | $30.00 | -12.3% |
| Prepared by Canstar. Prices taken as of week to week close. | ||||
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