11/05/2017 - 15:56

Market steady but Quintis down again

11/05/2017 - 15:56

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The share market ended the day steady after early gains by the big four banks evaporated in afternoon trade, and miners fall on weaker iron ore futures.

Market steady but Quintis down again
Photo: Attila Csaszar

The share market ended the day steady after early gains by the big four banks evaporated in afternoon trade, and miners fell on weaker iron ore futures.

The benchmark S&P/ASX200 was up 0.05 per cent at the close, after gaining as much as 0.8 per cent during the session.

A notable exception to the broader market trend was Perth company Quintis, which was heavily sold off the second day running.

Its shares closed 23 per cent lower at 46 cents, after hitting an intra-day low of 36 cents.

That followed a 44 per cent fall in the sandalwood producer's share price on Wednesday, after it belatedly disclosed the loss of a key sales contract.

Morgans senior private client adviser Bill Chatterton said gains by the banks, following two days of heavy falls due to the government's proposed bank levy, helped buoy the market in morning trade.

But those gains were retraced after the Australian Bankers' Association said the industry had more questions than answers about the levy after a meeting with Treasury officials.

"It shows the banks are still under pressure," Mr Chatterton said.

"There are not a lot of bright spots on the market today with softer Chinese iron ore futures also weighing on the miners."

ANZ fell 0.3 per cent and ANZ dropped 0.1 per cent, while Commonwealth Bank gained 0.4 per cent and National Australia Bank was 0.3 per cent higher.

Macquarie Group, the other institution facing a levy, bucked the trend to jump 1.8 per cent.

Iron ore miner Fortescue Metals dropped 5 per cent and Rio Tinto was 0.7 per cent weaker, while BHP Billiton gained 0.4 per cent.

Wealth manager AMP dropped 2.2 per cent to $5.30 after it reported net cash outflows of $199 million in the first quarter of 2017.

Myer slipped 3.45 per cent as it reported a 3.3 per cent decline in total sales in the third quarter of its fiscal year.

Other retailers were also sold off, with JB Hi-Fi and Harvey Norman each losing 1.2 per cent after Citigroup warned Amazon's presence in the local market would significantly weaken their long-term earnings.

Graincorp shares jumped 8.3 per cent to $9.88 after the bulk grain handler's half-year profit soared to $90 million.

The benchmark S&P/ASX200 was up 2.9 points, or 0.05 per cent, at 5,878.3 points.

The broader All Ordinaries index was up 0.9 points, or 0.02 per cent, at 5,912 points.

The June SPI200 futures contract was was down six points, or 0.1 per cent, at 5,865 points.

National turnover was 2.5 billion securities traded worth $6.9 billion.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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