Afternoon (PM) Market Report

Details

Published on Monday, 19 September 2016 07:00

Local market trading was severely affected due to technical difficulties at the ASX, causing a reduction in trading hours and volumes. The ASX has confirmed there will be no Closing Single Price Auction (CSPA).

Monday, 19th September 2016

The Australian dollar gained against most major currencies.

The All Ordinaries slipped 3 points (-0.06%) to 5,393.70 while the S&P/ASX 200 slipped 1.90 points (-0.04%) to 5,294.80.

Macquarie Group provided investor presentation and outlook update. The Company reported FY16 operating income of A$10,135m, up 9% on FY15; FY16 EPS of A$6.19, up 23% on FY15. The Company has raised A$22.5bn term funding in FY16. Weighted average life of debt issued was 4.7 years. The Basel Committee has recently proposed a number of changes to the calculation of risk weighted assets, most of which are under consultation. Any impact on capital1 will depend upon the final form of the proposals and local implementation by APRA. APRA have released a discussion paper on the NSFR which is yet to be incorporated into local standards. While the impact remains uncertain, the Company expects to meet the overall requirements of the NSFR. 1Q17 operating group contribution down on a strong pcp and up on prior quarter. Newcrest Mining announced that it has signed an agreement to sell Newcrest PNG 1 to a wholly owned subsidiary of Harmony Gold Mining Company. Newcrest PNG 1 is a 100% owned subsidiary of the Company that holds its 50% interest in the Hidden Valley JV including the Hidden Valley mine. Completion of this sale is conditional upon the receipt of any required South African regulatory approval. The Company has also signed an agreement to sell its 50% interest in certain regional exploration tenements proximate to the Hidden Valley mine to Harmony. The transactions will enable Company to focus its attention on its other assets. The parties will remain JV partners in the Wafi-Golpu project. As part of the transaction the Company has funded Newcrest PNG 1 with an amount of US$22.5m.

The NZX 50 added 27.61 points (0.38%) to 7,278.12 while the Nikkei was closed for Respect for the Aged Day holiday.

The Australian dollar was last quoted at 75.33 US cents.