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The share market had a third week of gains in its sights despite a soft morning after the spread of the Covid-19 virus outside China spooked Wall Street.
The ASX 200 eased 16 points or 0.2 per cent to 7146 by mid-session but remained on track for a weekly tally of more than 15 points. The benchmark index closed at a record high yesterday after an unexpected jump in unemployment resurrected hopes of another rate cut.
Overnight, US stocks retreated from all-time highs as deaths in South Korea and Iran revived concerns about the spread of the virus. The S&P 500 eased 13 points or 0.38 per cent.
Back home, company earnings continued to drive sentiment. Lithium miner Orocrobre climbed 3.6 per cent after declaring it expects full-year production to be at least 5 per cent ahead of last financial year. Rival Galaxy Resources gained 3.6 per cent despite a “disappointing” $US283.7 million full-year net loss as weak Chinese demand and an increase in supplies triggered a slump in spodumene prices.
Respiratory care provider Fisher &Paykel Healthcare rose 3.1 per cent to a new peak after upgrading its profit outlook. Increased demand from China due to the coronavirus outbreak and better-than-expected sales of the Homecare product range contributed to improved net profit after tax guidance of $260 – $270 million from previous guidance of $255 – $265 million. Elsewhere in the health sector, Mayne Pharma slumped 5 per cent to a seven-year time low following a net after-tax loss of $17.5 million.
Petrol company Viva Energy jumped 4.3 per cent after announcing it will sell its 35.5 per cent stake in Viva Energy REIT for an estimated pre-tax profit of $112.9 million. Portfolio manager Perpetual declined 5.3 per cent from yesterday’s 23-month high following a downgrade from broker Citi.
ANZ rose 0.8 per cent to its highest level in more than three months as gains in the financial sector cushioned the market from a deeper loss. CBA put on 0.4 per cent and Westpac 0.9 per cent. NAB was unchanged.
The market mood was not helped by weakness in US index
futures. S&P 500 index futures declined 5.5 points or 0.16 per cent. Another mixed morning
on Asian markets saw China’s
Shanghai Composite up 0.1 per cent, Hong Kong’s Hang Seng down 0.57 per cent
and Japan’s Nikkei ahead 0.07 per cent.
Brent crude retreated 22 cents or 0.4
per cent this morning to $US59.11 a barrel. Gold tacked on $2.50 or 0.15 per cent at $US1,623 an ounce.
The dollar bounced 0.03 per cent 66.17 US cents.
What’s hot today and what’s not:
Hot today: Shareholders in Lake Resources (ASX:LKE) found themselves in bed with Bill Gates, Mark Zuckerberg and a host of other astute billionaires this morning after the local lithium developer announced it had gained blue-riband fund Breakthrough Energy Ventures as an investor. Breakthrough, a global fund backed by 28 high-worth investors including Richard Branson, Jeff Bezos and Michael Bloomberg, invests in clean energy. The fund took an allocation in LKE’s latest $20 million capital raising. Lake aims to commercialise a process for extracting lithium from brines more efficiently and cleanly. The share price surged 33.3 per cent.
Not today: Theme park operator Ardent Leisure Group (ASX:ALG) cannot take a trick. Just as business at the company’s flagship Dreamworld theme park was picking up following a disaster on a ride four years ago, along comes the coronavirus and an unexpectedly wet Queensland summer. The company warned this morning that the combination of events meant Dreamworld was unlikely to break even this half. ALG shares sank 4.1 per cent.
