ASX weekly: Afterpay soars, BHP & Rio Tinto slide

Afterpay Touch’s share price hit a new high last week, while weakness across the energy and resource sectors dragged the local share market lower.

Afterpay

Payments platform Afterpay soared to an all-time high of $28.25 earlier last week, following a positive company update on its expansion plans into the US, which now includes a multi-million dollar funding facility with Citi.

While Afterpay’s share price pulled back slightly towards the end of the week, it did finish 16% higher at $27.62 to lead weekly share price gains.

The information technology company also ranked among the top five biggest winners in terms of market capitalisation, with its overall market value rising by about $908 million.

ASX 200 Listed Companies – Top 5 Biggest Share Price Gains and Losses (26/04/2019 to 03/05/2019)
Biggest Gains Biggest Losses
Rank Company Closing Share Price % Change Rank Company Closing Share Price % Change
1 Afterpay Touch (APT) $27.62 16.0% 1 Janus Henderson Group (JHG) $30.87 -14.3%
2 Orocobre (ORE) $3.71 12.4% 2 Pendal Group (PDL) $8.05 -11.6%
3 Resmed (RMD) $16.29 11.8% 3 Regis Resources (RRL) $4.34 -9.9%
4 Pilbara Minerals (PLS) $0.73 11.5% 4 Ausdrill (ASL) $1.49 -9.5%
5 Hub24 (HUB) $15.41 9.0% 5 Super Retail Group (SUL) $7.56 -9.2%
Prepared by Canstar. Prices taken as of week to week close.

Dominating market moves was weakness across major oil and gas stocks, largely due to tumbling oil prices.

Woodside Petroleum took a $1.2 billion hit to its market value, while BHP’s market value dropped by $1.9 billion after global oil prices slid on greater-than-expected US oil supplies.

AMP Capital Chief Economist Shane Oliver said the local share market’s soft performance was to be expected, given Australian and overseas share markets have “run hard and fast from their December lows” and were now vulnerable to a short-term pullback.

“But valuations are okay, global growth is expected to improve into the second half of the year, monetary and fiscal policy has become more supportive of markets and the trade war threat is receding,” Dr Oliver said.

He said all of this, including a possible RBA cash rate cut in May, may support decent gains for the local share market throughout the rest of 2019.

Dr Oliver is expecting the RBA to cut the official cash rate at its May board meeting tomorrow for the first time since August, 2016.

A number of economists have forecast the central bank to lower the cash rate by 0.25 percentage points to a new record low of 1.25% to combat stubbornly weak consumer prices (inflation).

Dr Oliver is among a growing number of economists who are now forecasting two rate cuts this year, however he said it was a close call as to whether the RBA would move on Tuesday or wait until after the May 18 Federal election.

ASX 200 Listed Companies – Top 5 Biggest Market Cap Gains and Losses  (26/04/2019 to 03/05/2019)
Biggest Gains Biggest Losses
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 CSL (CSL) $1,336,648,023 $199.93 1.5% 1 Macquarie (MQG) -$2,477,986,333 $128.71 -5.4%
2 Woolworths (WOW) $1,106,633,237 $32.83 2.6% 2 BHP Group (BHP) -$1,914,803,406 $36.95 -1.7%
3 Afterpay Touch (APT) $907,601,835 $27.62 16.0% 3 Scentre Group (SCG) -$1,329,249,302 $3.71 -6.3%
4 Resmed (RMD) $678,505,256 $16.29 11.8% 4 Woodside Petroleum (WPL) -$1,216,997,013 $34.91 -3.6%
5 Worleyparsons (WOR) $572,241,783 $13.95 -3.6% 5 RIO Tinto (RIO) -$1,139,633,777 $94.55 -3.1%
Prepared by Canstar. Prices taken as of week to week close.

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