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Australian shares hit an all-time high before paring gains after China reported a sharp rise in coronavirus cases, sending a chill through financial markets.
The ASX 200 inched past the old high-water mark of 7144.9 in the first hour of trade, peaking at 7145.8. The index trimmed its advance to seven points or 0.1 per cent at 7096 mid-session after Chinese authorities revised the way they measure coronavirus infections, triggering a huge jump in reported cases.
The virus news undermined a global rally over the last 24 hours supported by an apparent slowdown in the number of reported cases after the World Health Organization reported the number of new infections fell to a two-week low. So what changed? China’s Hubei province tweaked its reporting methodology to include “clinically diagnosed” cases in its figures, leading to a huge increase in the total. Of 14,849 new cases reported yesterday, 13,332 fell under the new classification, according to CNBC.
The dollar turned lower, US index futures slumped and Asian markets stuttered. The dollar was lately down 0.12 per cent at 67.29 US cents. S&P 500 index futures dived nine points or 0.3 per cent.China’s Shanghai Composite and Hong Kong’s Hang Seng edged up 0.1 per cent. Japan’s Nikkei fell just below even..
The virus proved an unwelcome distraction on another crowded day of company profit reports. Telstra fell 2.1 per cent after unveiling a 6.4 per cent decline in half-year net profit after tax to $1.2 billion. CEO Andrew Penn said the result included a $50 million hit from bushfires.
Beleaguered wealth manager AMP sank 3.8 per cent after declaring a full-year net loss of $2.5 billion. Much of the loss was due to impairments following the fallout from the Royal Commission. CEO Francesco De Ferrari said the company had established a three-year roadmap for recovery.
Oil and gas giant Woodside reported a full-year net profit after tax of $US343 million. Shares turned lower with the broader market, lately down 0.9 per cent. Gold miner Newcrest dipped 2 per cent as news of an 18 per cent rise in underlying half-year profit was offset by a 12 per cent decline in production. Miner South32 faded 0.4 per cent after revenue, profits and underlying earnings all deteriorated.
AGL Energy was among the morning’s best performers, rising 4.3 per cent after updating its full-year guidance. The energy company said it expects underlying profit after tax to be at the upper end of previous guidance of $780 – $860 million. TPG Telecom surged 1.381per cent after the Federal Court greenlit a proposed merger with Vodafone Hutchison Australia.
National Australia Bank surged 1.8 per cent to its highest level since mid-November after beating first-quarter expectations. Commonwealth Bank retreated 0.2 per cent from yesterday’s four-and-a-half-year high.
Consumer staples was the worst of the sectors as the big two supermarkets eased from record levels. Coles shed 0.6 per cent, Woolworths 0.8 per cent.
Brent crude futures put on 20 cents or almost 0.4 per cent this morning to $US55.99 a barrel. Gold gained $1 or 0.1 per cent at $US1,572.60 an ounce.
What’s hot today and what’s not:
Hot today: Breville Group (ASX:BRG) was the index’s star performer after the kitchen appliance specialist unveiled a 14.1 per cent jump in net half-year profit to $49.7 million. CEO Jim Clayton attributed the “solid half” to the company’s expansion into Europe as it expanded its global footprint. The company also launched a new microwave range into North America. BRG shares soared 18.6 per cent to an all-time high of $23.98.
Not today: Shares in Synlait Milk (ASX:SM1) crashed to their lowest level in almost two years after the New Zealand-based powdered milk maker cut its earnings guidance, citing a deterioration in sales. The company said sales of its infant powder were significantly lower than anticipated as the market consolidated. CEO Leon Clement said revenue increases had not kept pace with increased costs as the company invested in new ventures. The share price tanked 19.3 per cent.
