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

20Nov

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.

Our next online event is the 2nd December. Four companies presenting, starting 12:30pm. Details at: https://www.finnewsnetwork.com.au/page/investor-events. Please register to secure a spot.
Copyright 2020 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

30Dec

Wall Street boosts on record e-commerce sales: Aus shares to open lower

30 Dec 2019 - The SPI is pointing to a fall at the open, despite positive leads on Friday from the US. The Dow Jones Industrial Average and the broader S&P 500 edged to fresh record highs on Friday however, the tech-heavy Nasdaq snapped its 11-day winning streak. Drug delivery company SUDA Pharmaceuticals (ASX:SUD) has unsuccessfully appealed the Australian Therapeutic Goods Administration’s decision to deny marketing approval for its ArTiMist 6 product.

Read More
29Dec

Wall St hits record high as Trump signs aid bill: ASX poised to open higher

29 Dec 2020 - The ASX looks set to open higher this morning following leads from Wall Street and Europe. In the US President Donald Trump has signed the Covid relief and government funding bill days after he suggested he would block it. All of Wall Street's main indexes touched record levels.

Read More
02Jun

Wall St struggles, Why hold Fortescue & Link, PEXA set to float: ASX to rise

02 Jun 2021 - This report covers Wall St's performance, a wrap up of Tuesday's session locally, why Morgans rates Link (ASX:LNK) and Fortescue Metals (ASX:FMG) as a hold. Eyes on national GDP figures today in local economic news.

Read More
18Dec

Australian leading index falls again: ASX tracking 0.1% higher at noon

18 Dec 2019 - The ASX has been on a rollercoaster ride so far this morning. It is now tracking 0.1% higher at noon. Shares in Oil Search (AX:OSH) have risen today after they reported they expect to start early engineering work in Alaska and a rise in resources. Codan (ASX:CDA) have made a good start to the first four months of the year, with Metal Detection and Communications sales exceeding expectations.

Read More
20Apr

Tech & Healthcare weighs on market: Aus shares tracking 0.4% lower

20 Apr 2021 - The ASX’s record-breaking form suffered a setback this morning, dipping in the opening hours of today’s trading session. The Australian tech sector mimicked its Wall Street equivalent and copped big losses. Stocks in healthcare have also contributed to the downward pressure on the broader market. Telcos and Real Estate Investment Trusts are fighting the tide and appear to be the only sectors in the black.

Read More
18Oct

Markets rally on US corporate earnings: UK government changes course on tax cuts

18 Oct 2022 - US equities finished sharply higher in Monday trading, ending near best levels and more than erasing Friday's slide. Across the sectors, bank earnings continued to highlight the tailwind from higher rates and resilient US consumers. Bank earnings continue to beat lowered expectations.

Read More
12Nov

Record low levels of travel continue in September: ASX tracking 0.3% lower at noon

12 Nov 2020 - The ASX rose at the open and is now tracking 0.3% lower at noon. Shares in Xero (ASX:XRO) are up after they reported their its six month revenue rose 21% and shares in Telstra (ASX:TLS) are up after they reported a restructure for the company. Centuria Office REIT (ASX:COF) to divest minority interest in a Sydney office block.

Read More
06Apr

ASX soars: Aus shares close 4.73% higher

06 Apr 2020 - The Australian share market had a positive day of trade to finish 4.3 per cent up. Paradigm Biopharmaceuticals (ASX:PAR) to raise $35 million.

Read More
15Sep

Qantas (ASX:QAN) to relocate: Aus shares steady at noon

15 Sep 2020 - The Australian share market opened higher this morning but is now steady at noon. Qantas (ASX:QAN) is considering a possible move interstate as part of its recovery plan and efforts to cut overheads.

Read More
29Jan

S&P 500 ends slightly lower but secures weekly gains amid mixed economic signals

29 Jan 2024 - The S&P 500 closed slightly lower Friday, but clinched weekly gains as the latest economic data added to a positive picture of the economy.

Read More