Afternoon (PM) Market Report

Details

Published on Thursday, 08 September 2016 07:00

The Australian market fell sharply after open, on the back of losses on Wall Street overnight.

Thursday, 8th September 2016

Ahead of the ECB monetary policy meeting tonight investors remain cautious and market closed well below the flat-line. There were poor results from the sectors; health care posted the only profits while consumer staples was the worst performer for the session. The Australian dollar gained against the greenback and most major currencies.

The All Ordinaries fell 36.50 points (-0.66%) to 5,484.60 while the S&P/ASX 200 fell 38.40 points (-0.71%) to 5,385.80.

Sigma Pharmaceuticals announced that strong first half delivers over 15% growth. Revenue for the six months to 31 July 2016 reached $2.15bn, up 28.1% on the same period in 2015, influenced by the PBS listing of the high cost, low margin Hepatitis C medications from March 2016. Excluding Hepatitis C, sales revenue was up 7.8%, with half of the growth coming from non-PBS revenue. Underlying EBIT was up 17.0% to $48.4m and Underlying NPAT up 14.5% to $31.7m. Underlying EPS this half of 3.2c was up 18.5%, with shareholders rewarded through a lift in the interim dividend to 2.5cps. Capital expenditure for the period reached $8.1m as the Company commenced its major infrastructure renewal program. SIP added 13 cents (11.26%) to $1.28. Link Administration Holdings referred to its announcement on 23 August 2016 notifying the market that the following the Company shares subject to escrow arrangements would be released from voluntary escrow on 7 September 2016. The Company has been informed that the PEP Shareholders and ICG Shareholders have each entered into a block trade agreement with an investment bank to sell all of their Shares which were released from escrow on 7 September 2016. On completion of the sale, the PEP Shareholders and ICG Shareholders will cease to hold any Shares. The Company Board will consider in due course the implications of the PEP Shareholders no longer being entitled to nominate any Directors to the Company Board. The Company Board will ensure an orderly transition of any change. LNK lost 15 cents (-1.79%) to $8.23.

The NZX 50 lost 36.38 points (-0.48%) to 7,534.73 while the Nikkei dropped 53.67 (-0.32%), to close at 16,958.77.

The Australian dollar was last quoted at 77.16 US cents.