Australia: S&P/ASX 200 (.AXJO) banks went ex-dividend and housing finance approvals came in weaker than expected
The Australian share market has closed lower, pulled down by the financial sector as two banks went ex-dividend and housing finance approvals came in weaker than expected.
The benchmark S&P/ASX200 index finished down 13.3 points, or 0.21 per cent, to 6,297.6 points at 1615 AEST on Monday, while the broader All Ordinaries was down 11.8 points, or 0.18 per cent, to 6,381.3.
“It’s a pretty ugly day, and the only positive thing I could say is it could have been a lot worse,” said Michael McCarthy, chief market strategist with CMC Markets, who noted the Shanghai composite tumbled more than one per cent.
Financial shares collectively fell 1.84 per cent as ANZ and Macquarie traded ex-dividend and the ABS reported that housing finance approvals weakened again in March, more than reversing a slight gain in February.
The total number of owner-occupied loan approvals, excluding refinancing, declined 2.8 per per cent, compared with forecasts of a 0.5 per cent decline, a figure Mr McCarthy called “shockingly bad”.
ANZ was down 3.89 per cent to $26.43, NAB was down 1.97 per cent to $25.43 and Commonwealth Bank declined 2.52 per cent to $73.50 after it reported it was setting aside another $714 million for customer remediation.
Macquarie Group was down 3.59 per cent to $120.16. The outlier was Westpac, which only fell 0.37 per cent to $27.12.
The miners were up collectively half a per cent, with BHP gaining 0.35 per cent to $36.93 and Rio Tinto up 0.8 per cent to $96.03.
Lendlease gained 8.71 per cent to $13.85 after The Australian reported the property company was the target of a takeover bid by a Japanese company, believed to be Mitsui.
Lendlease said it hadn’t been approached by any suitor.
Telecommunications shares gained 0.82 per cent, with Telstra climbing 1.17 per cent to $3.45.
Reliance Worldwide shares fell 15.6 per cent to $3.89 after the plumbing supplies company issued an earnings warning, saying the mild winter in the southern US had resulted in far fewer burst pipes than normal, costing the company $12 million to $15 million in lost revenue.
Fonterra shares rose 0.74 per cent to $4.06 after the New Zealand dairy cooperative sold its Tip Top ice cream brand to global ice cream giant Froneri for $NZ380 million ($A358m), $NZ100 million more than book value.
AusNet was down 1.08 per cent after the energy company said its net profit after tax for the year ended March 31 had fallen 12.9 per cent.
Eclipx Group was down 4.69 per cent after the fleet leaser said it was selling its GraysOnline and Right2Drive businesses after first-half impairments of up to $130 million.
CSL was up 1.42 per cent to $200.05.
The Aussie dollar is buying 69.75 US cents, from 69.94 US cents on Friday.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 6,395.17.
The projected lower bound is: 6,205.92.
The projected closing price is: 6,300.55.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 57.0474. This is not an overbought or oversold reading. The last signal was a sell 9 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 52.72. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 10 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -61. This is not a topping or bottoming area. The last signal was a sell 9 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -13.300 at 6,297.600. Volume was 17% below average (neutral) and Bollinger Bands were 27% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,312.79 6,238.20 6,033.18
Volatility: 9 10 14
Volume: 556,402,560 613,110,720 611,724,096
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
S&P/ASX 200 is currently 4.4% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .AXJO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 17 periods.