The Australian market is falling by 0.7 per cent on Monday, enough to wipe out almost all of last week’s gains with no positive catalyst to keep the market positive and no shortage of geopolitical tensions leaving investors on edge. This includes a US-China trade dispute, tensions between the US and Saudi Arabia, upcoming sanctions on Iran, higher US interest rates and President Trump warning he would pull out of the nuclear treaty with Russia.
Almost all sectors are losing ground with 70 per cent of companies in the red. Losses from healthcare, mining, industrial and consumer discretionary stocks are weighing most.
Flight Centre (FLT) is the hardest hit falling by 9.5 per cent. The travel agent said it has had a smaller than usual lift in profit before tax over the past three months while also delivering a cautious outlook for the year ahead at its AGM with its Aussie leisure travel business a weight. FLT expects earnings between $390-$420m for the year. Webjet (WEB) is down by 3.5 per cent.
Sleep disorder treatment company ResMed (RMD) is down 2.8 per cent on a price target cut by a broker and ahead of a quarterly update this Thursday.
Pallet company Brambles (BXB) is slipping by 2.8 per cent on signs its US business is being impacted by higher trucking costs. Later this week BXB is set to hold its Annual General Meeting with shareholders.
Virgin Australia (VAH) is up 2.5 per cent after handing down a 9.7 per cent lift in first quarter revenue which met its guidance of at least 7 per cent growth. It now expects 10 per cent growth in the 2Q.
Worley Parsons (WOR) has entered a trading halt and announced the purchase of $4.6bn in assets from a rival engineering group, Jacobs. WOR is in the process of raising around 60 per cent of the funds from shareholders via a capital raising.
Cash Converters (CCV) is up 9.5 per cent after settling a class action. CCV will pay as much as $16.5m (including legal fees).
The latest CBA business sales indicator, a speech by a RBA official and weekly petrol price are all released today.
1.1bn shares have changed hands so far today worth $1.7bn. 413 stocks are up, 552 are down and 348 are flat.
Published by CommSec