ASX 200 weekly wrap: CBA, CSL, miners rise as gold tarnishes

Australia’s listed companies gained value overall last week, after solid gains from the big miners, the Commonwealth Bank and CSL. But fellow big names Westpac and Transurban didn’t fare as well. This is a wrap of last week’s news on the ASX 200.

Commonwealth Bank

Investors bought into the S&P ASX 200 last week, sending overall prices up 0.83% to 6,724 points. This is just under 2% shy of the record set in late July.

IT stocks, led by business software company Xero (XRO), provided the strongest gains, with a sector increase of 3.15%. Materials and energy shares also rose by 2.96% and 2.66% respectively on international news, with notable big companies BHP Group (BHP, up 4.5%), Fortescue Metals Group (FMG, up 6.4%) and Rio Tinto Ltd (RIO, up 5.2%) all helping pull up the market.

 

ASX 200 and All Ords Movements (01/11/2019 to 08/11/2019)
  Closing Points % Change
S&P/ASX 200 (XJO) 6,724 0.83%
All Ordinaries (XAO) 6,833 0.80%
Prepared by Canstar. Points taken as of Monday open to Friday close.
Sector Movements (01/11/2019 to 08/11/2019)
  Closing Points % Change
Consumer Discretionary (XDJ) 2,625 1.16%
Consumer Staples (XSJ) 12,388 0.51%
Energy (XEJ) 11,254 2.66%
Financials (XFJ) 6,274 0.46%
Health Care (XHJ) 39,066 0.78%
Industrials (XNJ) 6,954 -0.61%
Information Technology (XIJ) 1,366 3.15%
Materials (XMJ) 13,434 2.96%
Telecommunication Service (XTJ) 1,242 -0.77%
Utilities (XUJ) 8,100 -1.48%
Prepared by Canstar. Points taken as of Monday open to Friday close.

 

But in the utilities sector, there were losses of 1.48%, and the industrials sector fell 0.61%. Toll-road operator Transurban (TCL) lost 2.7%. And big four banker Westpac (WBC) also lost ground, after it revealed its earnings were 15% lower than this time last year, with 6% lower revenue.

The Reserve Bank of Australia (RBA) on Friday delivered its statement on monetary policy, which flagged continued slow growth ahead and indicated the bank was prepared to look at stimulus measures.

Last week, the RBA maintained the official cash rate at the record low of 0.75%.

 

ASX 200 – Top 5 Market Capitalisation Gains (01/11/2019 to 08/11/2019)
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 BHP Group Ltd (BHP) $4,713,362,230 $37.30 4.5%
2 Fortescue Metals Group (FMG) $1,785,799,652 $9.58 6.4%
3 Rio Tinto Ltd (RIO) $1,759,564,854 $95.23 5.2%
4 Commonwealth Bank (CBA) $1,646,322,741 $79.17 1.2%
5 CSL Ltd (CSL) $1,220,905,990 $261.34 1.0%
Prepared by Canstar. Prices taken as of week to week close.
ASX 200 – Top 5 Market Capitalisation Losses (01/11/2019 to 08/11/2019)
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 Newcrest Mining (NCM) -$1,676,078,206 $29.98 -6.8%
2 Westpac Banking Corp (WBC) -$1,605,367,235 $27.42 -1.6%
3 Transurban Group (TCL) -$1,120,559,533 $14.72 -2.7%
4 REA Group (REA) -$839,022,633 $102.85 -5.8%
5 Northern Star (NST) -$603,512,186 $9.00 -9.4%
Prepared by Canstar. Prices taken as of week to week close.

 

Internationally, the investor mood was subdued amid ongoing wrangling about the US-China trade deal.

After early-week optimism of a deal between the superpowers, there was another record set in the US markets, leading President Donald Trump to tweet:

Stock Markets (all three) hit another ALL TIME & HISTORIC HIGH yesterday! You are sooo lucky to have me as your President (just kidding!). Spend your money well!

— Donald J. Trump (@realDonaldTrump) November 6, 2019

But by the end of the week, he had kiboshed talk of a deal and there was confusion about its progress. Regardless, the US markets ended the week up overall.

Instability in Hong Kong continued to weigh on its markets, posting the biggest weekly loss in two months on Friday.

This international volatility is expected to feed into economic news from Australia this week, including data about wages, unemployment and consumer confidence.

 

ASX 200 – Top 5 Share Price Gains (01/11/2019 to 08/11/2019)
Rank Company Closing Share Price % Change
1 NRW Holdings Ltd (NWH) $2.62 16.4%
2 Galaxy Resources (GXY) $1.10 12.3%
3 Adelaide Brighton (ABC) $3.37 11.6%
4 Fletcher Building (FBU) $4.70 10.6%
5 Corp Travel Ltd (CTD) $19.73 10.3%
Prepared by Canstar. Prices taken as of week to week close.
ASX 200 – Top 5 Share Price Losses (01/11/2019 to 08/11/2019)
Rank Company Closing Share Price % Change
1 Saracen Mineral Holdings (SAR) $3.41 -10.0%
2 Regis Resources (RRL) $4.50 -9.6%
3 Northern Star (NST) $9.00 -9.4%
4 ST Barbara Ltd (SBM) $2.59 -8.8%
5 Resolute Mining (RSG) $1.12 -8.2%
Prepared by Canstar. Prices taken as of week to week close.

 

NRW Holdings, Galaxy Resources and Corporate Traveller up

Civil and mining contractor NRW Holdings (NWH) responded to media speculation early in the week, declaring it had been chosen as the “preferred bidder” in its attempt to acquire another company, BGC Contracting. Investors liked the news and sent its share price up 16.4% in the week to end at $2.62.

Lithium miner Galaxy Resources (GXY) continued its spike, doubling down on its 16.8% increase last week to grow another 12.3% this week.

And business travel agency, Corp Travel Ltd (CTD) increased its value by 10.3%, following confirmation it expected to meet its annual revenue and profit forecast.

Gold miners fall

The safety of gold declined last week, with several mining and exploration companies taking significant share price hits as the gold price fell. Saracen Mineral Holdings (SAR), Regis Resources (RRL), Northern Star (NST), St Barbara (SBM), and Resolute Mining (RSG) all declined, with share price drops ranging from 8.2% to 10%.

 

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