Gold shines on ASX as market looks forward to a positive week

Last week saw share values across the Australian market rise for the third week in a row, amid calmer international events and no major economic shocks.
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Momentum is looking positive for the week ahead on the Australian Securities Exchange, following strong share price movements internationally.

This included a brief record high on the US S&P 500 index to end last week.

The ASX 200 grew every day last week, rising 1.36% overall to 6,739 points, about 2% lower than the record high it reached in July.

The gains were broad-based. Materials, utilities, consumer discretionary companies and health care operators led the increases, while IT companies dragged down the market.

S&P and All Ords Movements (19/10/2019 to 25/10/2019)
  Closing Points % Change
S&P/ASX 200 (XJO) 6,739 1.36%
All Ordinaries (XAO) 6,841 1.23%
Prepared by Canstar. Points taken as of Monday open to Friday close.


Sector Movements (19/10/2019 to 25/10/2019)
  Closing Points % Change
Consumer Discretionary (XDJ) 2,624 1.86%
Consumer Staples (XSJ) 12,438 -0.26%
Energy (XEJ) 11,005 2.22%
Financials (XFJ) 6,445 1.06%
Health Care (XHJ) 38,399 1.70%
Industrials (XNJ) 6,944 1.48%
Information Technology (XIJ) 1,325 -2.92%
Materials (XMJ) 13,030 2.44%
Telecommunication Service (XTJ) 1,262 -0.48%
Utilities (XUJ) 8,233 2.19%
Prepared by Canstar. Points taken as of Monday open to Friday close.

Fed to reveal decision on interest rates

Internationally, there were calmer waters on the US-China front than there have been over recent months, which helped buoy overseas markets.

The US central bank will reveal its decision on interest rates tomorrow, a decision that is expected to have international significance.

And locally, there will be more quarterly updates and AGMs, offering an inside glimpse into listed companies.

This week will also see the Australian Bureau of Statistics (ABS) release its official inflation figures for the previous quarter.

Companies open their books to shareholders

In Australia, annual general meeting season and quarterly updates will shed light on the financials of some of our biggest companies.

This week, supermarkets Coles (COL) and Woolworths (WOW) will hold their forums, as well as banks ANZ (ANZ) and Macquarie (MQG).

National carrier Qantas (QAN) last week revealed its revenues were 5.4% down on expectations, citing the ongoing instability in Hong Kong and the US-China trade war.

Retailer JB Hi-Fi (JBH) said its total sales growth was up 4.7%, and comparable sales up 3.7%.

The Super Retail Group (SUL), which runs BCF, Macpac, Supercheap Auto and sporting goods store Rebel, said sales were up 4.2% in the first quarter, but that most of it was due to bargain discounting.

Casino operator Crown Resorts (CWN) said the international VIP market had fallen, with high-roller revenue down 46% but main floor revenue up 2%.

Banks, miners hit gold

Gold miners, often seen as a safe haven during periods of volatility, led the gains in the minerals sector last week.

Gold Road Resources (GOR) had the highest price jump in percentage terms for the week, rising 14.6% to $1.18, after delivering its positive quarterly report. The company said its commercial production was ahead of guidance. Another gold miner, Saracen Minerals (SAR), also had a double-digit jump.

ASX 200 – Top 5 Share Price Gains (19/10/2019 to 25/10/2019)
Rank Company Closing Share Price % Change
1 Gold Road Resources (GOR) $1.18 14.6%
2 Western Areas (WSA) $3.39 12.6%
3 Saracen Mineral (SAR) $3.64 10.3%
4 JB Hi-Fi (JBH) $37.19 10.0%
5 CYBG (CYB) $2.70 9.8%
Prepared by Canstar. Prices taken as of week to week close.

Nickel miner Western Areas Ltd (WSA) also revealed strong production figures and investors liked what they saw, leading the price to grow 12.6%

UK banking company CYBG (CYB) rose 9.8% over the last week. Its share price has notched up significant gains for the last fortnight, amid increased optimism that the UK will reach a Brexit deal with the EU. The company also announced it would transition into one banking entity, to eventually operate under the Virgin Money brand.

ASX 200 – Top 5 Market Capitalisation Gains (19/10/2019 to 25/10/2019)
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 BHP Group Ltd (BHP) $2,886,934,366 $35.77 2.8%
2 CSL Ltd (CSL) $2,632,382,820 $256.77 2.3%
3 Commonwealth Bank of Australia (CBA) $1,876,453,878 $80.70 1.3%
4 Fortescue Metals Group (FMG) $1,631,851,407 $8.82 6.4%
5 Sydney Airport (SYD) $1,422,916,381 $8.85 7.7%
Prepared by Canstar. Prices taken as of week to week close.

Commonwealth Bank (CBA) also rose in value to record strong gains, recovering ground the big bank’s shares lost early this month. Health and biotech giant CSL (CSL) continued its climb. BHP also recovered, but not enough to reach its 52-week high of $42.33 in July.

But another bad week for Wisetech, Cleanaway

Tech company Wisetech (WTC) slumped again last week, continuing losses following the release of a critical report from hedge fund research firm J Capital (JCAP). JCAP conducts short-selling, which is trading based on predictions that share prices will go down instead of up. Wisetech responded vigorously, saying it stands by its strategy, growth and business model.

ASX 200 – Top 5 Share Price Losses (19/10/2019 to 25/10/2019)
Rank Company Closing Share Price % Change
1 Wisetech Global (WTC) $26.37 -12.1%
2 Pro Medicus (PME) $27.36 -11.5%
3 Cleanaway Waste Management (CWY) $1.85 -10.2%
4 Galaxy Resources (GXY) $0.84 -8.2%
5 Mayne Pharma Group (MYX) $0.55 -6.8%
Prepared by Canstar. Prices taken as of week to week close.

Cleanaway Waste Management’s (CWY) price fell after its AGM where it reported lower waste volumes in Queensland following the introduction of a state-based waste tax.

Galaxy Resources Limited (GXY) also declined in value. The lithium miner has told the market it will reduce production due to weak pricing.

Qantas shares dipped after the Australian airline released a trading update before its shareholder meeting last Friday. However, early trade today has seen the share price recover, hitting about $6.40 at 11.30am, up from $6.25 at end of tradeon Friday.

ASX 200 – Top 5 Market Capitalisation Losses (19/10/2019 to 25/10/2019)
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 Wisetech Global (WTC) -$1,155,036,234 $26.37 -12.1%
2 Newcrest Mining (NCM) -$538,190,250 $32.43 -2.1%
3 Qantas Airways (QAN) -$439,741,663 $6.25 -4.3%
4 Cleanaway Waste Management (CWY) -$430,797,765 $1.85 -10.2%
5 Treasury Wine Estates (TWE) -$417,568,377 $18.02 -3.1%
Prepared by Canstar. Prices taken as of week to week close.

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About Rosanne Barrett: 

 Photograph of Rosanne BarrettRosanne Barrett 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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