The Match Out: A strong USD weighs on shares while BHP trades ex-dividend

Shares were under pressure from the get-go as strong US economic data overnight put upward pressure on interest rate expectations, downward pressure on the Aussie dollar and an appetite to sell for equity markets. The ASX200 fell for the third consecutive session for the first time since early July, though the final result was impacted by a number of stocks paying some chunky dividends – BHP being the most notable though Super Retail (SUL) and Perpetual (PPT) also traded ex-div.

• The ASX 200 finished down -86pts/ -1.19% at 7171
• All sectors closed lower, though Real Estate (-0.13%), Telcos (-0.19%) and Utilities (-0.24%) outperformed the weakness
• Materials (-3.17%) was well and truly the main drag, followed by Energy (-1.49%).
• BHP (ASX: BHP) -5.18% paid its $1.25/sh dividend, though fell by more than that today on the back of a risk-off feel. The impact from the Big Australian was 36pts off the ASX200
• Austal (ASX: ASB) +3.24% announced a $US91m contract win to build three LCU crafts for the US Navy. The trick will be ensuring a solid margin on the fixed-price deal, something that the company has struggled with recently.
• Audinate (ASX: AD8) halt while they look to raise $50m in new capital through an institutional placement. The deal at $13/sh is a ~9% discount to yesterday’s close. A $20m Share Purchase Plan will follow
• Bendigo & Adelaide Bank (ASX: BEN) +0.68% said they would redeem $275m worth of Subordinated debt with clearance from APRA suggesting the bank is in a strong position from a capital standpoint.
• Lithium stocks received a boost from US policy aiming to increase the supply of EVs from America with tax credits to support suppliers.
• Liontown (ASX: LTR) +9.03% was the main winner on the back of the news, though the company is also under takeover by Albemarle and there was a number of notable trades at the $3/sh offer price before the stock closed higher than that level.
• Iron Ore was off -2.4% in Asia today with Rio Tinto (ASX: RIO) and Fortescue (ASX: FMG) falling by similar amounts.
• Gold was trading marginally higher at around $US1,919/oz today in Asia, up +0.15%
• Equity markets across the region were also weaker today. Nikkei -0.75%, Hang Seng -1.1% at our close
• US Futures are all softer, Nasdaq -0.40% the worst while S&P futures are -0.25%. 

ASX 200 - intraday chart

ASX 200 - daily chart

Broker moves 

• Chalice Mining Raised to Neutral at UBS; PT A$3
• Challenger Raised to Neutral at JPMorgan; PT A$6.50
• Orora Cut to Hold at Morgans Financial Limited; PT A$3

Major movers today 

Have a great night

The Market Matters Team

Make informed investment decisions

At Market Matters, we write a straight-talking, concise, twice daily note about our experiences, the stocks we like, the stocks we don’t, the themes that you should be across and the risks as we see them. Click here for your free trial.

The Match Out will be available each day after the market close. Follow my profile to be notified when the latest report is live.