• The ASX slipped on Monday driven mostly by tech stocks
  • Michelle Bullock is officially RBA’s new governor
  • A2 Milk split ways with Synlait

 

Local shares fell broadly by -0.7% on Monday, driven mainly by tech losses.

Tech sector tracked Nasdaq and closed -2.5% lower, its worst one-day performance so far in September.

Other losses came from Energy – which fell -1% despite oil prices holding steady near 10-month highs – and Discretionary, which also fell -1%.

Sentiment is a bit subdued as traders anxiously await the outcome of the Fed meeting on Wednesday (US time).

While most expect the Fed to pause, a majority of academic economists polled by the FT believe the central bank will raise by 25bp.

“It doesn’t seem like there is enough pullback from consumers to slow the economy, and I think that’s really the issue,” said Julie Smith, a professor of economics at Lafayette College.

Back home, Michelle Bullock has officially become RBA’s governor today, and her first board policy meeting as the boss will be on October 3.

Elsewhere, tech losses also dragged down bourses in Hong Kong and Singapore, while Japan markets were shut today for holidays.

In focus later today will be a speech by Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud, who will provide insights into the kingdom’s crude policy and outlook.

 

BIG CAP WINNERS

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Whitehaven Coal (ASX:WHC) rose modestly after confirming an AFR report that it was in the running to acquire BHP’s major Daunia and Blackwater coal mines in Queensland.

Contact Energy (ASX:CEN) gained after releasing an August monthly operating report. Highlights include: Electricity and gas sales in the Consumer segment of 489GWh, versus pcp of 458GWh. In the Wholesale segment, contracted wholesale electricity sales totalled 832GWh, versus pcp of 701GWh.

 

BIG CAP LOSERS

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A2 Milk (ASX:A2M) fell 1% after cancelling its exclusive deal with long-time supplier, Synlait Milk (ASX:SM1). A2Milk gave Synlait a written notice that it was cancelling the exclusive manufacturing and supply rights for the stages 1 and 3 infant formula products sold in China, Australia and New Zealand. The SM1 stock price fell -8% on the news.

Horticulture stock Costa Group (ASX:CGX) fell 4% following an update in relation to the non-binding indicative proposal to acquire Costa shares by Paine Schwartz Partners (PSP). On Saturday, PSP put forward a revised best and final offer of $3.20 per share, down from $3.50 earlier.

“There continues to be no certainty that a binding offer will be received or that any transaction will eventuate. Costa shareholders do not need to take any action at this time,” said Costa.

Azure Minerals (ASX:AZS) plunged -11% after releasing its new lithium intersections at the Andover project in WA. Investors were disappointed as results from the Target Area 2 have fallen short of expectations.

QBE Insurance (ASX:QBE) fell after announcing that its head of distribution, Julie Wood, has been promoted to CEO of QBE’s North American to replace Todd Jones who resigned in August.

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