ASX 200 update: Sharemarket continues winning streak

ASX market wrap: The Australian sharemarket is expected to continue its upward trend today, after five weeks of record-setting gains. Here’s what is set to impact the market this week; and a wrap of how stocks performed last week.

All ears on the Reserve Bank Governor

Economists and analysts will be listening intently to the Reserve Bank of Australia Governor Dr Philip Lowe, who will deliver An Economic Update speech in Armidale tomorrow.

A number of economists have tipped that the RBA board may cut the cash rate for the third time this year at its meeting next Tuesday. Last week, the release of the board’s September meeting minutes left the door open to the possibility of further reductions from the current 1% official cash rate, especially if employment numbers didn’t improve.

Then official figures released by the Australian Bureau of Statistics (ABS) on Thursday showed an increase in the unemployment rate of 0.1 percentage points to 5.3%.

Property-price analysts CoreLogic had revealed earlier this month that Sydney house prices lifted 1.6% in August and Melbourne homes increased in value 1.4%, deepening a trend of rising values in most capital cities.

And the government provided a better than expected budget update, which revealed a deficit of $690 million for the last financial year, instead of the $4.2 billion that had been forecast in April. Treasurer Josh Frydenberg said the result meant the Australian economy was “ready for the challenges ahead”.

‪The Budget is back to balance for the first time in 11 years. A $13.8 billion turnaround compared to the 18-19 Budget. Record spending on health, education & disability support. Our plan is creating more jobs & guaranteeing essential services. More: https://bit.ly/2m1sqyc‬| Mathias Cormann |

Posted by Josh Frydenberg on Wednesday, 18 September 2019

A slew of economic data is set to be released in the United States this week, including house price figures and official gross domestic product numbers. Australian data due to be released by the ABS this week includes job vacancies for August, engineering construction activities for the June quarter and the nation’s finance and wealth status, showing how households are faring.

International growth expected to hit decade low

Face-to-face trade talks between the US and China resumed late last week, ahead of top-level discussions next month.

But according to the OECD, damage from the trade war has already been done. Last week, it cut its estimate of global economic growth to a decade-low of 2.9% this year. “Governments should absolutely take advantage of low rates to invest in the future now, so that this sluggish growth doesn’t become the new normal,” said OECD Chief Economist Laurence Boone.

And while the Federal Reserve cut US interest rates 0.25 points last week, it was not enough to placate President Donald Trump, who again criticised the independent agency and its chairman Jay Powell, who Mr Trump appointed to the position in February last year. Over the weekend, Prime Minister Scott Morrison attended a state dinner at the Oval Office, and confirmed the importance of trade with Mr Trump, committing $150 million to support Australian businesses’ involvement in NASA’s planned mission to the Moon and Mars.

There was ongoing turbulence in energy markets following the drone strike on a Saudi Arabian processing plant last weekend, but the Middle Eastern nation managed to resume supply faster than initially expected. The US announced increased sanctions on Iran following the attack.

Iran blamed for attack on Saudi oilfield

There are fears global fuel prices are about to skyrocket after the world's largest oil refinery was attacked. The plant in Saudi Arabia was hit by a series of drone strikes, which U.S officials say were sent by Iran – and could now cause an unprecedented drop in the world's petrol supply.More: 7news.link/janUGC#Iran #7NEWS

Posted by 7NEWS Sydney on Sunday, 15 September 2019

ASX continues run to finish 2% off record high

The ASX200 grew for the fifth week in a row last week, rising 0.93% to close on Friday at 6,731 points. It now sits just over 2% below the record high of 6875.5 points it hit on July 30.

The advance of energy stocks up 3.04% accounted for some of the gains, while IT companies also increased 1.71% overall. The consumer discretionary sector was the slowest mover but was still up 0.56%.

Infant formula company Bellamy’s (BAL) shares ended the week up 54% to $12.86 on the news of a $1.5 billion takeover offer from Hong Kong-listed China Mengniu Dairy. The bid, which values the company at $13.25 per share, is supported by the board.

Retail billionaire Solomon Lew’s Premier Investments (PMV), whose portfolio of retail chains includes Smiggle, rocketed up 14.7% to $18.12 on the back of a positive outlook following its annual results and a new global expansion strategy for the children’s stationery outlet.

The value of miner New Hope (NHC) fell 5.6% in the week it released its annual results, which disappointed investors despite an increase in revenue of 21% to $1.306 billion. It has not been able to secure licences for its proposed expansion of New Acland mine in southern Queensland to date.

Satellite company Speedcast’s value dropped for the third week running, after the release of its annual results – including a $175m loss  – and the departure of a major investor.

Global biotechnology company CSL (CSL) continued its strong run, while BlueScope Steel’s value fell. It is facing court action from the Australian Competition and Consumer Commission (ACCC) for alleged cartel conduct.

ASX 200 – Top 5 Share Price Gains (13/09/2019 to 20/09/2019)
Rank Company Closing Share Price % Change
1 Bellamy’s Australia (BAL) $12.86 54.0%
2 Premier Investments (PMV)  $18.12 14.7%
3 Resolute Mining (RSG) $1.65 13.0%
4 Blackmores Ltd (BKL) $84.65 10.1%
5 Service Stream (SSM) $2.73 8.8%
Prepared by Canstar. Prices taken as of week to week close.

 

ASX 200 – Top 5 Share Price Losses (13/09/2019 to 20/09/2019)
Rank Company Closing Share Price % Change
1 Sims Metal Management Ltd (SGM)  $11.08 -11.8%
2 Nufarm Ltd (NUF) $4.67 -9.5%
3 Speedcast Int Ltd (SDA) $1.17 -6.4%
4 Inghams Group (ING) $3.09 -6.2%
5 New Hope Corporation (NHC)  $2.35 -5.6%
Prepared by Canstar. Prices taken as of week to week close.

 

S&P and All Ords Movements (13/09/2019 to 20/09/2019)
  Closing Points % Change
S&P/ASX 200 (XJO) 6,731 0.93%
All Ordinaries (XAO) 6,839 0.91%
Prepared by Canstar. Points taken as of Monday open to Friday close.

 

Sector Movements (13/09/2019 to 20/09/2019)
  Closing Points % Change
Consumer Discretionary (XDJ) 2,589 0.56%
Consumer Staples (XSJ) 12,584 1.83%
Energy (XEJ) 10,905 3.04%
Financials (XFJ) 6,496 0.49%
Health Care (XHJ) 35,749 1.12%
Industrials (XNJ) 6,790 0.81%
Information Technology (XIJ) 1,389 1.71%
Materials (XMJ) 13,533 1.18%
Telecommunication Service (XTJ) 1,300 0.65%
Utilities (XUJ) 8,104 0.97%
Prepared by Canstar. Points taken as of Monday open to Friday close.

 

ASX 200 – Top 5 Market Capitalisation Gains (13/09/2019 to 20/09/2019)
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 CSL Ltd (CSL) $2,216,132,388 $234.50 2.0%
2 BHP Group Ltd (BHP) $2,062,095,976 $37.75 1.9%
3 Newcrest Mining (NCM) $1,948,085,116 $35.96 7.6%
4 National Aust. Bank (NAB) $1,917,203,816 $29.79 2.3%
5 Woolworths Group Ltd (WOW)  $1,409,843,705 $37.43 3.1%
Prepared by Canstar. Prices taken as of week to week close.

 

ASX 200 – Top 5 Market Capitalisation Losses (13/09/2019 to 20/09/2019)
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 Amcor Plc (AMC) -$564,741,024 $14.27 -3.6%
2 Fortescue Metals Group (FMG) -$446,449,913 $8.92 -1.6%
3 The a2 Milk Company (A2M) -$400,667,971 $12.55 -4.2%
4 Bluescope Steel Ltd (BSL) -$349,176,089 $12.15 -5.2%
5 Rio Tinto Ltd (Rio) -$334,094,593 $92.44 -1.0%
Prepared by Canstar. Prices taken as of week to week close.

 

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About Rosanne Barrett: 

Photograph of Rosanne BarrettRosanne Barrett writes stories that inform, entertain and inspire. She has had more than 15 years’ experience in daily news media across Australia and Hong Kong, including eight years as a staff reporter at The Australian. Ms Barrett produces journalism, content and copywriting across a range of industries.

 

 

 

 

 

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