Collaborate Corporation (ASX:CL8) drives deal with Hyundai over the line: Aus shares 0.7% higher over weekCraig Foley
The Aussie sharemarket ended the week on a low. Today’s session opened lower defying positive leads from overseas markets. All of the sectors retreated today, with Consumer Staples and Industrials retracting the most. Stocks fell as the market came to terms with lower than expected Chinese GDP figures for the third quarter. China’s economy grew 6 per cent year on year, falling short of the market’s expectation of 6.1 per cent. This is the lowest growth rate in almost three decade, as credit tightening and the ongoing trade war with the US takes its toll.
The S&P/ASX200 index
At the closing bell the S&P/ASX 200 index closed 0.5 per cent or 35 points lower to finish at 6,650.
Over the week, the market has gained 43 points or 0.7 per cent.
A very strong performance from IOOF Holdings (ASX:IFL) today. This came as Citi upgraded IOOF Holdings from a sell to a neutral, with a 12-month price target of $7.30. The ANZ P&I deal has been approved by the custodians, prompting Citi to lift its estimates for earnings per share in the 2020 and 2021 financial years by 29 per cent and 46 per cent respectively. The company still faces major hurdles, such as the need to restructure its advice business. However, the broker suggests the additional scale and cost synergies from the acquisition should provide flexibility. This comes as news broke today that the Australian Prudential Regulation Authority will not appeal the Federal Court's decision to dismiss its case against IOOF. Shares in IOOF Holdings (ASX:IFL) closed 3.6 per cent higher at $7.30.
Dow futures are suggesting a fall of 30 points.
S&P 500 futures are eyeing a dip of 4 points.
The Nasdaq futures are eyeing a fall of 16 points.
And back home the ASX200 futures are eyeing a 46 point fall on Monday morning.
Collaborate Corporation’s (ASX:CL8) subsidiary, DriveMyCar, has penned an agreement with Hyundai Motor Company Australia to supply vehicles for the Carly vehicle subscription service. Vehicle owners partner with Carly to generate recurring subscription revenue while retaining ownership. Carly will provide the technology platform to facilitate and manage the subscription relationships between Hyundai dealers and vehicle subscribers. This latest agreement with Hyundai follows the recent signing of agreements with Suttons Motors and Turners Automotive Group.
Tassal Group (ASX:TGR) has received the green light from the Whitsunday regional Council and Queensland State Government for the Company’s Stage 3 expansion plans for its prawn farm located near Proserpine.
Seven West Media (ASX:SWM) has announced plans to merge with regional affiliate Prime Media and to sell Western Australia radio business Red Wave to Southern Cross Austereo.
Gold miner St Barbara (ASX:SBM) has lowered its financial year 20 production guidance for its Western Australian Gwalia mine.
Wastewater management company Fluence (ASX:FLC) has finished a successful capital raise of $36 million.
Best and worst performers of the day
The best performing sector was Materials losing 0.2 per cent while the worst performing sector was Consumer Staples, shedding 1.2 per cent.
The best performing stock in the S&P/ASX 200 was Bravura Solutions (ASX:BVS), rising 7.2 per cent to close at $4.03. Shares in IOOF Holdings (ASX:IFL) and Challenger (ASX:CGF) followed higher.
The worst performing stock in the S&P/ASX 200 was St Barbara (ASX:SBM), dropping 9 per cent to close at $2.53. Shares in Afterpay Touch Group (ASX:APT) and Smartgroup Corporation (ASX:SIQ) followed lower.
Mixed: Japan’s Nikkei has added 0.3 per cent, Hong Kong’s Hang Seng has lost 0.1 per cent and the Shanghai Composite has lost 0.6 per cent.
Wrapped up our four trading days this week higher: The Dow Jones added 0.8 per cent, The S&P 500 added 0.9 per cent and the tech heavy Nasdaq gained 1.2 per cent.
Commodities and the dollar
Gold is trading at US$1,492 an ounce.
Iron ore price fell 0.9 per cent to US$87.06.
Iron ore futures are pointing to a fall of 1.3 per cent.
Light crude is 17 cents higher at US$54.20 a barrel.
One Australian dollar is buying 68.33 US cents.
Copyright 2019 – Finance News Network
Source: Finance News Network