Local shares fell in early trade on Monday before a recovery into lunch. The Healthcare sector led declines for the Index after Prime Minister Morrison announced plans for a Royal Commission into the aged care sector at the weekend. By contrast Telecoms and Utilities Only two sector managed to advance against the tide of weakness, while Consumer Discretionary names
Participation to lunch was average, with 1.02 billion trades measured by the ASX valued at $1.6 billion. 467 stocks were higher, 485 were weaker, while 378 were unchanged
There was a lack of direction offered by US equities at the end of last week. Traders focussed on mixed economic data and developments on the US-China trade dispute. The Dow Jones index rose by almost 9 points or less than 0.1% after tracking a 143 point range. The S&P 500 index rose by almost 1 point but the Nasdaq fell by 4 points or 0.1%. Over the week the Dow rose by 0.9%, the S&P 500 rose by 1.2% and the Nasdaq rose by 1.4%.
The Healthcare sector was nobble by aged care operators, which saw steep declines after Prime Minister Morrison announced plans for a Royal Commission Into Aged-Care Sector at the weekend. Japara Healthcare (JHC), Regis Healthcare (REG) and Estia Health (EHE) all suffered steep declines in opening trade in the order of 17% in early trade.
Shares in BWX Limited (BWX) were 3.6% or15 cents higher at $4.24 after announcing that a takeover proposal by private equity consortium which include Bain Capital would not proceed. The maker of skincare products also announced the conclusions drawn from a strategic review that was initiated in May 2018 after the bid was made. BWX will focus on organic growth opportunities, including the growth of the Sukin skincare brand domestically and globally, expanding the market share of all BWX brands and enhancing the Company’s e-commerce presence.
Shares in Kidman Resources (KDR) fell heavily after resuming trade, having been in a trading halt, since last Wednesday. The Lithium miner retreated after receiving notice that the Warden to the W.A Minister for Mines and Petroleum had recommended that applications for exemption from minimum expenditure obligations in relation to it’s Mt Holland Project be refused. KDR said that the Warden’s recommendation is not binding on the Minister, and that the Minister has the discretion to grant exemptions, not withstanding the Warden’s recommendation. KDR said it will continue to updateshareholders on the matter while progressing the project with the support of its joint venture partner. KDR shares were lately at $1.05, down 20.5 cents or 16.6%.
Published by CommSec