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Red day for the ASX

Aussie shares kicked off the week well in the red, with the ASX 200 slumping by 89.1pts or 1.51 per cent to 58

While all sectors declined, the market was down by as much as 2.2 per cent with one hour of trade remaining, before bouncing back in late trade, commented analyst Steven Daghlian.

“Together with lighter volumes, there wasn’t a huge amount of conviction in today’s selling.

 “The market was dragged lower by a 2.4 per cent decline in US markets on Friday and a spike in COVID-19 cases.

“This is adding to concerns about how this could impact the reopening of economies.

“Despite today’s slide, the market remains up 1.03 per cent in June with just one trading day left this month. This would mark the third consecutive month of gains for our market, although buyer enthusiasm has faded in recent weeks. Over the past 12 months, the local market has slumped by 12 per cent.”

· All sectors lost ground on Monday, although the percentage losses for some of the larger areas of the market abated. National Australia Bank (NAB) led the banks lower, with a decline of 1.6 per cent (was down as much as 3 per cent earlier). NAB announced a leadership change. Andrew Irvine will be the head of Business & Private Banking. Mr Irvine led the Bank of Montreal’s business banking division.

· Property stocks were some of the worst performers, down 2.85 per cent with a bunch of companies in the sectors going ex-dividend. Stockland (SGP), Mirvac (MGR), Goodman (GMG), Charter Hall (CHC), Dexus (DXS) and Shopping Centres Australasia (SCP). Transurban (TCL) and APA Group (APA) also went ex-dividend.

 · Travel stocks remained underperformers as doubts grew around the timing of international travel’s return. Regional Express (REX) surged by 16 per cent after pushing ahead with plans to fly capital city routes. REX is aiming to raise at least $30m to initially fly with 5-10 jets on the Sydney-Melbourne-Brisbane route. The gold sub-sector was the only group of stocks to lift, with Evolution (EVN) a standout (up 4.1 per cent).

 · Fisher & Paykel Healthcare (FPH) surged 6.9 per cent and hit a record high. FPH is outperforming the ASX 200 by around 60 per cent Year-to-Date. FPH has experienced strong demand for its respiratory support and humidification products used to treat COVID-19 patients.

· Infigen (IFN) jumped by 3.4 per cent following revised takeover bids from Iberdrola (a Spanish company) and UAC Energy (a group out of the Philippines).

· 5.6bn shares were traded on Monday, worth $6.5bn. 432 stocks rose, 917 fell and 325 finished unchanged.

· No major market moving economic data is due tonight offshore. Tuesday is set to be a busy day locally however, with weekly payroll jobs & wages figures, weekly consumer sentiment survey results, credit & debit card spending data, private sector credit (May) and a speech by the RBA Deputy Governor in focus. The latest updates on China’s manufacturing and services sector will be released for June at 11am AEST. Chinese lawmakers could also vote on Hong Kong law tomorrow, increasing chances of further protests.


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