The ASX should start positively this morning after the SPI 200 futures rose 29 points, or 0.5% on Friday night, but all eyes in the local market will be on Saturday’s federal poll.
The final week of the long campaign will no doubt be a concoction of outrageous claims, more promises to spend millions and gabilllions of dollars – all meaningless.
More than 2 million people have already pre-poll voted, according to the Australian Electoral Commission – over 286,000 on Friday alone. At the same time in the 2016 campaign, pre-polls totalled 1.1 million, so there’s been a near doubling of the rate.
For investors, it means the election the events this week will have less of an impact on the vote on Saturday.
Not even the escalated trade war between China and the US will have much of an impact on local markets, nor will the April production, investment, and retail sales data on Wednesday from Beijing.
Wednesday’s release of the Wage Price Index for the March quarter and Thursday’s jobs data for April will see traders renew their speculation about interest rates.
Last week saw Australian shares battle a noisy week of trading, as investors sold-off ahead of the US’s tariff increase on Chinese imports on Friday.
The ASX 200 Index fell 24.9 points, or 0.4% by the close on Friday, to 6,310.9 while the All Ordinaries lost 34.1 points, or 0.5%, to end at 6393.1.
The market was rattled on Monday after US President Donald Trump had announced by tweet that he would increase tariffs on China by the end of the week, shocking expectations a deal was close to being reached.
The market was rattled on Monday after US President Donald Trump announced lift tariffs to 25% on $US200 billion of Chinese imports by the end of the week, which happened. There was no sign of any progress at talks in Washington.
Much of the pressure on the market came from domestic sources. For example cement maker, Adelaide Brighton saw its shares lose nearly 18% over the week to end at $3.62 after it said profits for 2019 (it balances in December) could be 15% because of tougher competition and weak demand from residential construction.
The East Coast drought hammered shares in GrainCorp. On Monday its would be suitor, long term Asset Partnership dropped its bid and three days later it suffered reported a first-half loss of $59 million and warned of a tough second half. The shares slumped more than 15% to $7.54.
Treasury Wine Estates shares fell 11.5% to $15.09 after CEO Michael Clarke sold half his stake – $7 million worth of shares – for what he said were personal reasons.
But the news came a couple of days after Treasury was criticised by a US hedge fund for ‘channel stuffing’ its US distribution channels. The hedge fund reckons there’s a chance Treasury shares will fall 50%.
TPG Telecom’s merger with Vodafone Hutchison Australia was stopped by the ACCC, the competition regulator, but both companies have said they will challenge the ruling.
TPG shares shed 7% to $6.35 and Hutchison Australia closed 21.2% lower at 13¢. Telstra shares rose 0.9% to $3.41.
