Australian markets get affected by rising tensions about the global economic growth. The threats to global economic growth can also affect the performance of the Australian economy, which could, in turn, affect Australian equities. As the investors are aware, the trade battle between the US and China can derail the prospects of global economic growth and it can also impact the Australian stock markets. In the event of global economic slowdown, the investors tend to avoid deployments in equities and, as a result, they might decide to go for safer instruments. Recently, the Reserve Bank of Australia (or RBA) made an announcement regarding a cut in the cash rate by 25 basis points (or bps) to 0.75%.
We would now have a look at how the Australian markets performed. On October 3, 2019, S&P/ASX200 closed the session in red, as there was a decline in the index by 146.9 points or 2.3% to end the session at 6493. On the same day, All Ordinaries witnessed a fall of 2.1% or 141.6 points to close the day’s session at 6611.7. We would now have a look at how the stocks performed on ASX.
On October 3, 2019, Saracen Mineral Holdings Limited (ASX: SAR) and Northern Star Resources Ltd (ASX: NST) ended the session in green, as the share prices of these stocks rose by 4.07% and 3.543%, respectively. On the other hand, Nearmap Ltd (ASX: NEA) and Austal Limited (ASX: ASB) closed the day in red, as their prices witnessed a fall of 5.469% and 5.104%, respectively.
For the readers, we have provided certain information on stocks that could be beneficial for them. As the investor might know, Parkway Minerals NL (ASX: PWN) released its FY 2018-19 annual report. To read about the same, please click here. We have also covered an announcement by Nufarm Limited (AS:X NUF) concerning the sale of its South American operations for a consideration amounting to $1.9 billion to Sumitomo. In order to have a quick look, please click here.
A Look at Recent Update of AMA Group Limited
AMA Group Limited (ASX: AMA) has announced the successful completion of institutional placement as well as institutional component of its underwritten 1 for 4.5 pro-rata accelerated non-renounceable entitlement offer. It was further stated that around $178.9 million was raised through the placement and institutional component of the Entitlement Offer from offer of the new fully paid ordinary shares in AMA involving a price of $1.15 per share. With respect to placement, it was added that there was strong support from existing shareholders and new institutional investors.
In the release, it was also mentioned that the institutional entitlement offer had strong support from the existing shareholders with the take up rate by eligible institutional shareholders of around 96.8%. The shortfall under institutional entitlement offer attracted robust demand from the existing shareholders as well as new investors. Under the institutional entitlement offer, around 88.6 million shares would be issued involving a price of $1.15 per new share in order to raise $101.9 million.
SAR Daily Technical Chart (Source: Thomson Reuters)
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