CommSec Daily Report s

Evening Report | 18 July 2018

Latest News Latest Prices 4.30pm AEST Level Previous % chg  The Aussie market has made up some of the recent losses All Ords 6,329.1 6,288.4 0.6 in the first two sessions of the week. The ASX 200 climbed ASX 200 6,245.1 6,203.6 0.7 41 points or 0.7% to 6245 points. Gains were very much Shanghai 2,794.5 2,798.1 -0.1 broad based with only the energy sector going in reverse. Japan Nikkei 22,794.2 22,697.4 0.4 The biggest losses were in names such as (OSH) and (BPT), losing 2.1% and 2.8% US Dow Jones 25,119.9 25,064.4 0.2 respectively. US Nasdaq 7,855.1 7,805.7 0.6 UK FTSE 7,626.3 7,600.5 0.3  On the other side of the ledger, materials were well Dow Futures 25,105.0 25,106.0 0.0 supported after being a weight on the previous day’s trade. BHP Billiton (BHP), the world’s largest miner by market Last Previous % chg capitalisation, provided an operational review for the last Consumer Discretionary 2,498.3 2,476.7 0.9 financial year with the miner meeting or exceeding full year Consumer Staples 11,372.5 11,353.6 0.2 Energy 11,574.8 11,639.8 -0.6 guidance for production in petroleum, copper and iron ore. Financials 6,328.6 6,290.3 0.6 BHP shares rose 3.3%. Financial-x-A-REIT 7,058.5 7,015.8 0.6 Health Care 31,235.8 30,848.4 1.3  Financials were another key contributor to the overall Industrials 6,019.4 5,994.2 0.4 market gains with the big four banks and Information Tech 1,135.5 1,122.5 1.2 (MQG) trading higher. MQG was the standout lifting 2.3%. Materials 12,079.1 11,929.6 1.3 While the healthcare sector was boosted by advances in ASX200 A-REIT 1,427.4 1,425.0 0.2 CSL Ltd (CSL), up 1.3% and ResMed (RMD) rising 1.5%. Telecommunications 1,038.9 1,032.3 0.6 Utilities 7,979.1 7,927.3 0.7  In company news, Bega Cheese (BGA) improved by 4% after the dairy producer announced the purchase of the Last Day Move % chg Koroit dairy plant in Victoria from Canadian dairy company BHP $33.57 $1.07 3.3 Saputo. The purchase will cost $250 million but BGA RIO $79.51 $0.35 0.4 expects annualised earnings of $20 million. CBA $75.02 $0.53 0.7 ANZ $29.02 $0.09 0.3  Fairfax Media (FXJ) will share printing facilities with News NAB $27.95 $0.05 0.2 Corp (NWS) to minimise costs for its traditional print media WBC $29.67 $0.15 0.5 business, with the plan likely to save $15 million by the end TLS $2.77 $0.01 0.4 of 1H19. FXJ shares closed 3.2% higher. WOW $31.07 $0.08 0.3 WES $49.76 $0.22 0.4  Education provider, Navitas (NVT) has slipped 3.3% after WPL $34.50 -$0.23 -0.7 announcing a restructure to its Careers and Industry CSL $199.61 $2.49 1.3 division. It will include the closure of several education COH $202.65 $2.87 1.4 programs and colleges in the US and Australia and incur NCM $20.28 -$0.44 -2.1 one off charges of $130 million to its FY18 earnings (EBITDA) result. Current Aust 4pm % chg AUD/USD 0.7353 0.7388 -0.47  No major economic releases in Australia and a AUD/EUR 0.6323 0.6335 -0.19 strengthening USD has seen the local currency drift lower AUD/JPY 83.128 83.396 -0.32

to buy 73.5 US cents. Tonight, US housing starts and building permits data are released, together with the US 11am Official Cash 1.50 1.50 0.00 Aust 90 day futures 2.00 2.01 -0.50 Federal Reserve Beige Book. Oil Nymex ($US/b) US Close 66.68 67.07 0.0 Gold futures($US/oz) US Close 1227.40 1239.70 -0.1  3.1B units were traded with $5.8B with 673 stocks higher, 499 lower and 414 unchanged.

James Tao - Media & Capital Markets Analyst (Author) Twitter: @commsec

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