Afternoon (PM) Market Report

Details

Published on Wednesday, 07 September 2016 07:00

The Australian market railed after open, following a positive lead on the Wall Street overnight.

Wednesday, 7th September 2016

After the announcement of a solid GDP growth in Q2, local investors surprisingly turned more conservative on the market as the ASX index gave up most of early gains to close modestly higher. There were mixed results from the sectors; consumer staples posted the biggest profits while energy was the worst performer for this session. The Australian dollar depreciated against most major currencies.

The All Ordinaries added 10.70 points (0.19%) to 5,521.10 while the S&P/ASX 200 rose 10.60 point (0.20%) to 5,424.20.

Qube Holdings announced that it has lodged a replacement prospectus with the Australian Securities and Investments Commission in relation to its offer of Company's Subordinated Notes (Offer). The Offer opens on 7 September 2016 and follows the announcement made by the Company on 1 September 2016 regarding the completion of the bookbuild and the Margin being set at 3.90% per annum. As announced on 1 September 2016, it has increased the Offer size to $300m, with the option to raise more or less. The final size of the Offer will depend on the volume of applications received under the Shareholder Offer. The Company reserves the right to scale back applications. QUB added 5 cents (2.09%) to $2.44. Beach Energy provided monthly drilling report stating that the Company has commenced its FY17 operated drilling program with the Hanson-4 development well. The well also assessed potential for reservoir development in the Lower Birkhead Formation. These results were in-line with pre-drill estimates. The well is expected to be brought online in Q2 FY17. The Callawonga-12 development well was drilled following a comprehensive review of the Callawonga Field. Callawonga-12 was cased and suspended as a future oil producer and is expected to be brought online in Q2 FY17. A five-well appraisal and development campaign progressed on the central flank of the Big Lake Field, which is located 20 km southeast of the Moomba processing facility. BPT remained unchanged at $0.55.

The NZX climbed 67.57 points (0.90%) to 7,571.11 while the Nikkei lost 69.54 points (-0.41%) to close at 17,012.44.

The Australian dollar was last quoted at 76.58 US cents.