Financial sector weighs on the market: ASX closed 0.7% lower

The Australian share market opened lower this morning and failure to gain moment closing 0.7 per cent lower. Technology One Limited (ASX:TNE) was the best performing stock. Meanwhile, shares in Virgin Money UK (ASX:VUK) have dropped over 11 per cent after the withdrawal of financial targets planned for 2022.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 47 points lower to finish at 6,636.

Futures market

Dow futures are up 33 points.
S&P 500 futures are up 5.25 points.
The Nasdaq futures are up 46.25 points.
And the ASX200 futures are 0.5 per cent fall.

Local Economic News

Total new capital expenditure fell by -3.0% in the September quarter 2020. Buildings and structures fell by -3.7% in the September quarter 2020.

Company News

Monash (ASX:MVF) saw a 31.2 per cent reduction in their adjusted net profit after tax to $14.4 million from $20.9 million dollars for FY20 after temporary suspension on procedures due to Covid19. Ultrasound clinics remained open and scan volumes were only moderately impacted. Cost of service delivery increased due to heightened infection control measures. Revenue is down 4.3 per cent to $145.4 million dollars for the last financial year. Shares in Monash (ASX:IVF) closed 1.3 per cent lower at 0.78.

Stockland (ASX:SGP) has appointed Tarun Gupta as the next Managing Director and CEO. Mr Gupta will join Stockland on June 2021 succeeding Mark Steinert who will remain in position till Mr Gupta’s commencement date. Shares in Stockland (ASX:SGP) closed up at 0.9 per cent at $4.60.

Litigation funder Omni Bridgeway (ASX:OBL) says the states of Queensland and Victoria have given their consent to be group members in the Combustible Cladding Class Actions in the Federal Court of Australia. Total claims are expected to exceed $500 million.

Bega Cheese Limited (ASX:BGA) has entered into a binding agreement to acquire Lion Dairy & Drinks Pty for $534 million.

IPO

WA Kaolin (ASX:WAK) started trading today. Their shares issued at $0.20 opened at$ 0.28 and closed at $0.245.

Best and worst performers of the day

The best performing sector was utilities closing up at 1.2 per cent while the worst performing sector was financials, shedding 1.4 per cent.

The best performing stock in the S&P/ASX 200 is Technology One Limited (ASX:TNE), rising 5.6 per cent to close at $9.56. Shares in Harvey Norman (ASX:HVN) and Gold Road Resources (ASX:GOR)followed higher.

The worst performing stock in the S&P/ASX 200 was Virgin Money (ASX:VUK),dropping 11.5 per cent to close at $2.30. Shares in Worley (ASX:WOR) and Perenti Global (ASX:PRN) followed lower.

Asian markets

Japan’s Nikkei has added 0.5 per cent, Hong Kong’s Hang Seng is flat and the Shanghai Composite is down 0.1per cent.

Commodities and the dollar

Gold is trading at US$1,811 an ounce.
Iron ore price is flat at US$127.41
Iron ore futures are pointing to a gain of 1.7 per cent
Light crude is trading at US$45.72 barrel.
One Australian dollar is buying 0.736 US cents.

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Source: Finance News Network