Afternoon (PM) Market Report

Details

Published on Monday, 12 September 2016 07:00

The ASX index fell to a fresh two-month low near the key level of 5,200 points, weighted down by heavy sell-offs among the big banks and resource stocks, amid renewed expectations that the US Federal Reserve will lift cash rate soon

Monday, 12th September 2016

All sectors delivered negative results, with health care being the worst performer. The Australian dollar depreciated against most major currencies.

The All Ordinaries slumped 121.40 points (-2.23%) to 5,319.10 while the S&P/ASX 200 fell 119.60 points (-2.24%) to 5,219.60.

Downer EDI announced that the Evolution Rail consortium had been selected as the preferred respondent to deliver the High Capacity Metro Trains (HCMT) project. Evolution Rail comprises the Company, CRRC Changchun Railway Vehicles and Plenary Group. Revenue to the Company will be finalised at contract execution, which is expected to occur in the coming months. The Company will also be an equity investor in the project. The HCMT trains will incorporate over 60% local content with the Company also investing $16m to revitalise the Newport manufacturing facility into the Newport Centre of Excellence for Rolling Stock. The first of the new trains will be due to come into service in 2019. DOW lost 10 cents (-1.99%) to $4.93.

The NZX dropped 188.84 points (-2.53%) to 7,279.76 while the Nikkei fell 292.84 points (-1.73%) to close at 16,672.92.

The Australian dollar was last quoted at 75.31 US cents.