Aussie shares are under a little pressure on Thursday, with the ASX 200 down by 13pts to 7018.4 due mainly to heavy losses from mining stocks. The index is still slightly above 7,000pts and has improved by 5 per cent in January, which makes it the best start to a new year since 1994. The movements higher have been slowed
down by coronavirus concerns.
Early this morning Facebook, Microsoft, Tesla and other wellknown names released quarterly results. Facebook’s revenues jumped by 25 per cent to US$21.1bn over the quarter while profits rose by 7 per cent to US$7.35bn. Both exceeded analyst expectations. Tesla delivered 367,000 Model 3 electric cars in 2019 (+23 per cent from a year earlier) and plans to lift deliveries to 500,000 in 2020. Revenues barely budged at $7.38bn and the company is yet to make an annual profit. Microsoft also posted higher quarterly results.
The Aussie market has had a mixed start to the session, with mining stocks the main weight while banks are mostly higher.
Treasury Wine Estates (TWE) is up 5 per cent. The company behind Penfolds slumped by 26 per cent on Wednesday, hitting a one and a half year low in the process after warning of much weaker profit growth this year. It blamed that mainly on the US wine market, together with the impact of bushfires and the ongoing drought.
Afterpay (APT) hit another fresh record high of $38.36 this morning. The buy-now-pay-later company is up 30 per cent in January; outperforming the broader market (ASX 200) almost six fold.
Newcrest (NCM) is down 4.2 per cent and the worst of the miners today. This follows the gold miner flagging gold production near the bottom end of guidance in its quarterly update this morning.
Fortescue (FMG) is down 2.1 per cent. The iron ore miner said that shipments rose by 10 per cent to 46.4mt (vs Sep Q) and C1 costs eased by 3 per cent to US$12.54/wmt. Looking forward, FMG expects shipments at the upper end of guidance (170-175mt), costs in the range of US$12.75-US$13.25/wmt. While that’s lower than what it previously flagged, it is a little higher than costs between October and December.
Nearmap (NEA) is slumping by 23 per cent and is the worst in the tech space. The aerial mapping company has reduced its guidance for the year after losing a major contract in North America’s driverless car industry.
1.3bn shares have changed hands so far worth $2.9bn. 415 stocks are up, 602 down and 371 are unchanged.
Published by CommSec