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A pause in the banks’ golden run helped drag the Aussie market lower ahead of a US public holiday.
A low-key session saw the ASX 200 ease 12 points or 0.2 per cent to 7118 as tonight’s US Presidents Day holiday slowed the global money-go-round. US stocks closed mixed but little changed on Friday, with traders reluctant to add to positions ahead of the three-day break. The S&P 500 edged up 0.18 per cent, while the Dow slipped 0.09 per cent.
Here, the local benchmark closed less than three points off a record on Friday after the financial sector was boosted by strong results from the Commonwealth Bank and NAB. The new week brought some profit-taking as Bendigo Bank tapped the market for capital. CBA declined 1.8 per cent from a four-and-a-half-year high, NAB 0.7 per cent from its strongest level since November, ANZ 0.5 per cent and Westpac 0.6 per cent. Trade in Bendigo Bank was suspended while the company sought to raise $300 million from shareholders to strengthen its capital ratio.
Telstra was a drag on the index, falling for a third session since releasing half-year earnings on Thursday. The telecom giant eased 0.7 per cent. The supermarkets were also weak ahead of tomorrow’s earnings report from Coles. Woolworths shed 0.1 per cent, Coles 0.2 per cent.
Earnings season delivered more winners than losers this morning. Logistics company Brambles was the index’s best performer, rising 4.4 per cent to its highest point since 2016 as underlying half-year profit increased by 5 per cent as sales revenue grew 7 per cent. Insurer QBE rallied 2.5 per cent on a 41 per cent jump in statutory full-year net profit to $550 million.
Gold miner Regis Resources climbed 5.8 per cent after unveiling a record half-year net profit after tax of $93.4 million. Saracen Mineral added 3.5 per cent as underlying half-year net profit improved 84 per cent to $80.2 million. The results helped lift the S&P/ASX Gold index 0.8 per cent.
An 8 per cent decline in half-year net profit weighed on building products manufacturer GWA Group, the share price falling 1 per cent.
Tech leader Altium edged up 1.7 per cent to a fresh all-time high as the sector defied the broader market trend with a gain of 0.9 per cent. Afterpay put on 3 per cent and Technology One 1.7 per cent.
Up in Asia, China’s Shanghai Composite rallied 0.83 per
cent and Hong Kong’s Hang Seng 0.42 per cent, while Japan’s Nikkei shed 0.85 per
cent. S&P 500 index futures firmed eight points or 0.2 per cent.
Brent crude skidded 26 cents or 0.45
per cent this morning to $US57.06 a barrel. Gold drifted $1.50 or 0.1 per cent lower to $US1,585 an ounce.
The dollar rose 0.16 per cent to 67.24 US cents.
What’s hot today and what’s not:
Hot today: Shares in Compumedics (ASX:CMP) surged after the medical diagnostics specialist got the green light from US regulators for its brain-mapping system. Clearance by the Food and Drug Administration allows the company’s Orion LifeSpan MEG to be used in the US for brain function mapping and epilepsy. Chairman and CEO David Burton hailed the approval as an “important milestone” as the company commercialises the technology. The share price jumped 26.6 per cent to 88 cents.
Not today: Disappointment for investors in oil and gas explorer Karoon Energy (ASX:KAR) after an exploration well failed to find oil off the coast of Peru. Mudlogging indicated the Marina-1 exploration well reached its final depth of with no oil and only minor gas shows. The well will be plugged and abandoned. Shares in Karoon slumped 5.1 per cent.
