Hello and good afternoon. I’m Sage reporting live from Kalkine Studio. It’s lunchtime here
in Sydney, and time for ‘The Mid-Market Pulse’. In today’s show, we’ll take a look at the overall
Australian share market performance by the mid-session trade. We will also explore the
biggest winners and losers of the day such as Orica, Codan, Beach Energy, Gold Road Resources,
Chalice Mining and others. Lastly, we’ll focus on stocks such as CIMIC, Pro Medicus, Marquee
Resources, Brightstar Resources, Energy One, and many more that have grabbed headlines today.
So, without further ado, let’s get started.
The Australian shares have extended their losses in mid-session trading as concerns
about China's looming economic crisis as well as rising COVID-19 cases in the country
triggered a sharp correction in equity market. The market witnessed absolute carnage as
investor sentiments were spooked by concerns about rising inflation and the uncertainty
surrounding debt-ridden Chinese real estate giant Evergrande. The announcements from the US' Federal
Reserve that economic stimulus provided during the pandemic also added negativity in the market.
The benchmark index, the ASX 200, nosedived 2.06%, by lunch. The index opened lower today and
declined as much as 2.3% during the day’s trade so far. In the overnight trade, Wall Street suffered
its worst day since March as the Delta virus threat painted a gloomy picture for the economy,
which kept investors away from risky bets. The S&P 500 fell 1.19%, while the Dow Jones
dropped 1.59%. The NASDAQ Composite Index ended 0.44% lower. Back home, on the sectoral front,
all the 11 sectoral indices were bleeding in red. The financial sector was the worst performer
with a 3% loss, with all major four banks trading in red. The financial sector was
followed by A-REIT and consumer discretionary, which fell over 2% each. Among others, material,
health care, industrial, energy, telecom, tech sectors also saw surge in selling.
On the COVID-19 front, New South Wales reported 864 new local coronavirus cases
and fifteen deaths in the past 24 hours. Victoria’s daily case tally continued to outnumber
NSW for the fourth consecutive day. The state recorded 1,143 cases and three deaths on Friday.
Meanwhile, Prime Minister Scott Morrison is expected to make an announcement today about
the international border, suggesting we might learn when it will reopen.
In our next segment, let’s focus on the top gainers and losers by mid-session trade.
The top loser on the ASX pack was Australia’s largest pizza chain Domino's Pizza Enterprises
with a 6% loss. Some of the other worst performers were English bank Virgin Money UK,
plumbing, waterworks business Reece, miner Mineral Resources and financial services firm HUB24.
On the gaining side, gold miner Silver Lake Resources was the top performer with a 3.5% gain.
Gold stocks dominated the gainers’ chart with likes of Northern Star Resources, Evolution
Mining and St Barbara, as investors shifted to safer assets like gold amid economic uncertainty.
On this note, let’s move on to stocks that grabbed headlines today.
Shares of engineering services company CIMIC were down 0.7% even after its group’s firm
secured AU$297 million contract. The company’ arm, UGL, has bagged a contract to design,
manufacture and supply new fuel-efficient diesel electric locomotives for its long-standing client,
Pacific National. The contract will be valid for seven years and it is expected
to solidify UGL’s position as Australia’s only manufacturer of freight locomotives.
The C44 Evolution locomotives will be the most technologically advanced,
fuel efficient, and environmentally compatible diesel electric locomotives
in Australia and will be designed and manufactured in Newcastle, New South Wale.
Shares of Pro Medicus were trading marginally lower after it inked an AU$40 million
contract with Novant Health. The health imaging company informed its shareholders
this morning that its wholly-owned US subsidiary, Visage Imaging,
has signed a 7-year contract with Novant Health, Inc. The contract will see the company’s Visage
7 Enterprise Imaging Platform and Visage 7 Workflow module implemented throughout Novant
Health, providing a unified diagnostic imaging platform across the network.
And now, its time for a short break but stay
tuned on kalkine tv as I’l be back with more trending market updates
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Hello and welcome back. Sage here live from Sydney, you are watching to the mid
market commentary. Let us look at some more stocks that grabbed market’s attention today.
Brightstar Resources shares rose
% after it completed oversubscribed capital raise of AU$2.3 million. It has received
firm commitments from sophisticated investors to subscribe for a placement of around 87 million
equity shares in the company at an issue price of 2.7 cents per share. The company said that
is well funded to continue exploration efforts at its Laverton Gold Project.
Energy One, a supplier of software products and services, has entered into a share
purchase agreement to acquire 100% stake in EGSSIS NV, a Company incorporated in Belgium.
Established in 2008, the EGSSIS (pronounced ‘egg-sis’) business has been developed by
its Founders to be a significant provider of energy scheduling and nomination software and
associated trading services to European gas and power market participants. Energy One purchased
Egssis for AU$6.8 million to be paid in cash and equity, in instalments over an 18-month period.
The acquisition will be funded from the existing cash reserves and debt facilities.
The later cash instalments will be funded internally from cash flow.
Mosaic Brands shares dropped 3.5% after the women's fashion retailer unveiled plan to
acquire the remaining 49.9% stake in online fashion retailer EziBuy.
MOZ purchased a 50.1% stake in New Zealand e-commerce operation EziBuy late in 2019
for just AU$1. The full purchase of EziBuy will close to double the Group’s annual online sales
to AU$218 million. Excluding EziBuy, Group sales for the last financial year contributed 19%
of revenue, combined this will grow to approx. 30% of total group revenue.
shares of PlaySide Studios rose 2.6% after the Aussie video games developer acquired the ‘Dumb
Ways to Die franchise from Metro Trains Melbourne. It will acquire all DWTD assets including the
Copyright, Trademarks, Merchandise, Domain Names, Social Media Accounts, and Software. The deal
involves a cash consideration of AU$2.25 million, which represents 1.5 times DWTD’s
FY21 revenue. The acquisition will be funded from PlaySide’s existing cash reserves
and will be immediately accretive to earnings and EPS. The DWTD YouTube channel has had over 420
million views and over 7 billion game sessions played with nearly 400 million app downloads.
Vimy Resources said in an exchange filing this morning that it has received nod for the Mulga
Rock Mining Proposal. The company has received approval from Western Australian Department
of Mines, Industry Regulation and Safety, for the Mulga Rock Mining proposal and associated Mine
Closure Plan on 29 September 2021. This approval authorises Vimy to commence development and
operation of the Mulga Rock Project, including vegetation clearing, stockpiling of topsoil,
excavation of overburden and construction of overburden landforms.
Ainsworth Game Technology has appointed Harald Neumann, as the Company’s Chief Executive Officer,
subject to the completion of all necessary regulatory approvals.
Neumann’s appointment commenced on 1 October 2021.
The company has also appointed David Bollesen as Chief Product Officer effective 7 October 2021.
Well, that’s a wrap in the show. Keep watching kalkine tv for more trending
market updates from Australia and around the world.