Afternoon (PM) Market Report

Details

Published on Friday, 26 August 2016 07:00

The Australian market experienced a volatile day. Local stocks opened sharply lower, pared most of early losses before midday, but fell back to the starting point at close.

Friday, 26th August 2016

There were mixed results from the sectors; telecommunication services gained most significantly; while energy was the biggest laggard. The Australian dollar appreciated against the greenback and experienced mixed results against other major currencies.

The All Ordinaries lost 24.00 points (-0.43%) to 5,607.40 while the S&P/ASX 200 fell 26.40 points (-0.48%) to 5,515.50.

The Star Entertainment Group provided 2016 results presentation. The Group domestic revenues up 5.8% on pcp. International VIP Rebate business volumes up 7.0% on pcp with improved win rate in 2H FY2016 of 1.50%. Actual EBITDA of $489m, up 7.5%; Normalised EBITDA of $556m, up 14.1%. Final dividend per share of 7.5c fully franked, up 25.0%. Rebranding of the Group and The Star Sydney completed, with The Star Gold Coast scheduled for 2H FY2017. New hotel and residential tower expansion plans announced at The Star Sydney and the Gold Coast in partnership with Queen's Wharf partners, Chow Tai Fook Enterprises and Far East Consortium, Currently in planning and development approval stage. FY2016 net debt of $474m increased by $74m on 30 June 2015 due to increased capital expenditure and investments during FY2016. SGR remained unchanged at $6.04. Incitec Pivot announced on 26 August 2016 that all conditions precedent have been satisfied under its long term gas supply agreement with Power and Water Corporation (PWC) for supply of gas to the Company's Phosphate Hill manufacturing plant. Accordingly the gas supply agreement which was entered into on 17 November 2015 is unconditional. As notified to the market in November 2015, the PWC gas supply agreement will restore competitively priced gas to Phosphate Hill and is expected to result in gas costs decreasing by $55m per year as against the current cost. Supply of gas under the agreement will commence on completion of the construction of the Northern Gas Pipeline (previously known at the North East Gas Interconnector) which will run from Tennant Creek to Mount Isa. IPL added 2 cents (0.71%) to $2.82.

The NZX lost 35.98 points (-0.48%) to 7,391.30 while the Nikkei slid 195.24 points (-1.18%) to close at 16,360.71.

The Australian dollar was last quoted at 76.30 US cents.