The Newswire

Your daily serving of financial goodness

ASX Review: ASX Falls Despite Better Than Expected GDP Data

ASX Review: ASX Falls Despite Better Than Expected GDP Data
Jun 03, 2015 By Imran Valibhoy

The ASX was down 52.4pts, or 0.9 per cent, at 5583.6pts on Wednesday. Data from the Australian Bureau of Statistics on Wednesday showed March quarter GDP growth rising above projections at 0.90 per cent. The rise in GDP growth was partially attributed to a surprising surplus in mining exports.

Despite the positive growth data, stocks closed lower on Wednesday. “Market sentiment remains quite negative as blue-chip stocks, mainly the banks, drag the market lower. Upbeat GDP data is good enough to boost the AUD, but not the stock market,” said Wise-owl equity analyst Simon Herrmann.

The Financials sector dragged heavily on the Australian shares market, falling 1.25 per cent on the day. Energy and Health Care stocks fell the most, falling 1.34 and 1.53 per cent respectively. Shares fell almost immediately in the opening minutes of trading. Around 12:30pm, on the back of the strong Australian dollar, the market sank again and remained near daily lows at its closing. The AUD is up due to the positive GDP data, trading at US$0.7803 around 4:26pm AEDT.

International markets were broadly down in the previous day of trading. In the US, the Dow Jones was down 0.16 per cent and the S&P 500 was down 0.10 per cent. In Europe, the DAX fell 0.94 per cent and the FTSE 100 fell 0.36 per cent. Asian stocks are mostly down on Wednesday. The Nikkei 225 has ended its hot streak and is down 0.38 per cent near the end of trading hours. The Hang Seng is up 0.85 per cent while the Shanghai Composite is down 0.36 per cent so far on Wednesday.

Newcrest Mining (ASX:NCM) was down 39c, or 2.75 per cent, at $13.81 per share. Newcrest announced a shake up of its executives to continue with a corporate restructuring project. However, some analysts have questioned the move.

Centaurus Metals (ASX:CTM) was up .1c, or 9.09 per cent, at 1.2c per share. Small-cap miner Centaurus announced the tenure of a potentially large Brazilian gold and iron ore project.

Rio Tinto (ASX:RIO) was up $1.01, or 1.79 per cent, at $57.50 per share. Iron ore prices jumped over night, sending Rio shares up.

Commonwealth Bank of Australia (ASX:CBA) was down $1.43, or 1.72 per cent, at $81.57 per share. Banking giant CBA fell like many of the other Australian banks.

Share this article

Imran Valibhoy Author: Imran Valibhoy Jun 03, 2015

Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.

Private credit underpins Metrics listing

Investors have poured more than $300 million in just nine days into the latest ASX listing of alternative asset manager Metrics, which will offer retail investors exposure to the difficult-to-access private credit market.

Author: Simon Herrmann Mar 26, 2019


Sign Up for Free Trial
Recent Tweets
Recent News