As the market players are aware, trade battle between the US and China could affect the performance of broader Australian economy and can also weigh over the performance of Australian equities. In the event of slowdown, investors liquidate their holdings in equities largely because of the risks associated with this asset class. We would now have a look at how markets performed on October 10, 2019.
S&P/ASX200 index ended the session in green, as there was an increase of 0.4 points and, as a result, the session closed at 6547.1. On the other hand, on the same day, All Ordinaries ended in red, due to a fall of 4.1 points or 0.1% on an intraday basis, closing the session at 6662.9.
On October 10, 2019, CLINUVEL PHARMACEUTICALS LIMITED (ASX: CUV) and Resolute Mining Limited (ASX: RSG) also ended the session in red, posting a decline of 14.756% and 11.228%, respectively, in their share price.
Stock of ORA Rose 13.919% On Intraday Basis
Orora Limited (ASX: ORA) announced to have entered into a binding agreement to sell its Australasian Fibre Business. The sale would be made to the wholly owned subsidiary of Nippon Paper Industries Co., Limited for an enterprise value amounting to A$1,720 million. In the market update, the company mentioned that after the receipt of interest for Australasian Fibre Business, the Board of Orora has concluded that Nippon Paper offer is compelling and offer acceptance is in the best interests of shareholders. As per the release dated October 10, 2019, ORA anticipates receiving the net cash proceeds as a result of transaction, after taxes, transaction costs, restructuring costs as well as customary closing adjustments amounting to A$1,550 million.
After the completion of transaction, ORA has intention to return in vicinity of A$1,200 million, being majority of the net proceeds, to the shareholders, in most efficient way with the help of capital management initiatives.
We would now have a look at how the stock of ORA performed on October 10, 2019. ORA ended the session in green, as the stock witnessed a rise of 13.919% to end at A$3.110 per share.
Brambles Releases Trading Update For First Quarter
Sales revenue from continuing operations of Brambles Limited (ASX: BXB) amounted to US$1,159.0 million for the first three months of financial year ending 30 June 2020 (FY 2020), which implies a rise of 5% at the constant FX rates as well as an increase of 2% at the actual FX rates. The difference between actual and constant FX growth implies strengthening of the Brambles’ reporting currency, the USD, relative to all the other operating currencies, as per the result update.
On October 10, 2019, the stock price of Brambles Limited ended the session in green, growing 3.542% and settling at A$11.400 per share.
ORA Daily Technical Chart (Source: Thomson Reuters)
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