Moody’s slashes Crown’s credit rating: Aus shares gain 2.1% over week

 

The ASX200 ended the day 0.1 per cent lower due to a late session slump. The Healthcare sector led the day driven by a strong performance from Mesoblast (ASX:MSB). At the closing bell the S&P/ASX 200 index closed 8 points lower to finish at 6,539. Over the week, the market has gained 134 points or 2.1 per cent. The Financial sector was the strongest performer this week, capping over 6 per cent in gains.

Futures 

Dow futures are suggesting a fall of 182 points.
S&P 500 futures are eyeing a dip of 15 points.
The Nasdaq futures are eyeing a lift of 17 points.
And the ASX200 futures are eyeing a relatively flat start, a 3 point rise on Monday morning.

Economic news

The Australian Bureau of Statistics says total retail turnover in seasonally adjusted terms rose 1.6 per cent in October month on month beating the market’s expectations. Australian turnover was up 7.3% in October 2020 compared with October 2019.

The ABS recorded a contraction in the Australian economy of 0.3 per cent in the 2019 to 2020 year. This is no surprise given the major disruptions caused by the black summer bushfires and the Covid 19 pandemic. This ends 28 consecutive years of economic growth.

Broker moves

Credit Suisse rates online employment marketplace operator, SEEK (ASX:SEK) as an outperform, with a price target of $28.50. The broker has revised its forecast higher, slightly ahead of the company’s own guidance. Its analysis reflects better macro conditions, particularly in Australia, New Zealand and China. Shares in SEEK (ASX:SEK) closed 0.5 per cent higher at $25.55.

Company news

Moody’s has slashed Crown Resorts (ASX:CWN) credit rating from Baa2 to Baa3, and warns that it will continue to review the rating and may issue a further downgrade. As a result of the downgrade, there will be an increase in the interest cost associated with Crown’s Euro Medium Term Notes of approximately USD$1 million per annum. Moody’s remains concerned about the escalating regulatory investigations into Crown, potential licence restrictions and the impact of the Covid 19. Shares in Crown Resorts (ASX:CWN) closed 1.4 per cent lower at $9.33.

The CEO of explosives maker, Orica (ASX:ORI), Alberto Calderon, says he has “cautious optimism about the year ahead” after revealing a 31 per cent drop in full year profit to $168 million.

Redbubble (ASX:RBL) has appointed former SEEK CEO Michael Ilczynski as its new Chief Executive Officer.

Mesoblast (ASX:MSB) jumped today after it entered into an exclusive worldwide license and collaboration agreement with Novartis.

APN Industria REIT (ASX:ADI) has acquired a new Melbourne warehouse for $16 million.

Best and worst performers of the day

The best-performing sector was Health Care, adding 0.6 per cent, while the worst-performing sector was Energy, shedding 1.5 per cent.

The best-performing stock in the S&P/ASX 200 was Mesoblast (ASX:MSB), rising 11.3 per cent to close at $3.64. Shares in Mineral Resources (ASX:MIN) and Sandfire Resources (ASX:SFR) followed.

The worst-performing stock in the S&P/ASX 200 was Oil Search (ASX:OSH), dropping 5.1 per cent to close at $3.54. Shares in Washington H. Soul Pattinson (ASX:SOL) and EML Payments (ASX:EML) followed.

Asian markets

Mixed. Japan’s Nikkei has lost 0.4 per cent, Hong Kong’s Hang Seng has gained 0.4 per cent and the Shanghai Composite has gained 0.1 per cent.

Wall Street

Wall Street wrapped up its four trading days this week mixed. The Dow Jones gained 0.01 per cent, the S&P500 lost 0.1 per cent, and the NASDAQ gained 0.6 per cent.

Commodities and the dollar

Gold is trading at US$1,867 an ounce.
Iron ore price is 1.2 per cent up at US$127.89.
Iron ore futures are pointing to a rise of 0.9 per cent.
Light crude is flat at US$41.74 a barrel.
One Australian dollar is buying 72.92 US cents.

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Source: Finance News Network