While Aussie shares are losing ground for a third day, the ASX 200 is down by just 0.8 per cent, bouncing off a low of 2.3 per cent earlier this morning. The market has shed close to 6 per cent so far this week partly on volatile oil prices and sluggish economic data.
The US market provided a weak lead overnight, with the Nasdaq down by 3.5 per cent and the Dow Jones down 2.7 per cent. This marked the first back-to-back losses for the American equity market
since April 1.
Oil prices remained volatile in overnight trade. Oil Nymex futures for delivery in June, fell by 43 per cent to US$11.57 per barrel. A reason for the extreme movements in recent days has been a lack of available storage in the US at Cushing, Oklahoma (where US oil is delivered to buyers each month). Secondly there is an excess of supply and thirdly demand remains very low due to the impact of COVID-19. Many businesses are temporarily shut, planes are grounded and cars remain parked in garages.
Netflix released its first quarter results this morning, with revenues lifting to US$5.77bn after adding 15.77 new global subscribers to its streaming services. Tiger King was viewed 64 million times over the quarter while season three of Ozark was watched 29 million times in just four weeks. With more people staying at home due to COVID-19 restrictions, Netflix shares are outperforming the broader US market by ~50 per cent Year-toDate.
Top Australian Brokers
Snap Inc – the owner of messaging app Snapchat – posted a 44 per cent lift in revenue and a 20 per cent jump in daily users of the app over the first quarter (Jan-Mar).
Kathmandu (KMD) has completed its retail entitlement offer and raised gross proceeds of ~NZ$53m. The adventure products retailer’s shares have slumped by 66 per cent in March. Ramsay Health Care (RHC) is in a trading halt as it looks to raise $1.4bn from investors. RHC shares have fallen by 11.4 per cent Year-toDate.
WiseTech (WTC) has outperformed today after reaffirming its FY20 guidance. A2 Milk (A2M) announced strong revenue growth in the three months to March thanks to ‘consumer purchase behaviour arising from the COVID-19 situation’. A2M has raised its margin guidance slightly for the year.
Sigma Healthcare (SIG) has announced some Board changes which take effect from the conclusion of its AGM on May 13. Spark (SPK) has reaffirmed FY20 guidance. The New Zealand based telco is down 1.5 per cent.
1.7bn shares have changed hands so far worth $2.9bn. 319 stocks are up, 689 down and 330 are unchanged.
Published by CommSec