ASX shares to open lower Friday – WTC, NEA & Boral shares in focus

Australia’s share market and S&P/ASX 200 (ASX: XJO) index is expected to start trading down on Friday according to the latest data from the Sydney Futures Exchange. Here’s what you need to know on Friday.

Did you miss the rally?

Those investors still expecting a second wave or calling the current rally a “dead cat bounce” continued to be left behind on Thursday, with the ASX adding another 1.3%. At one point the market was up over 150 points, prior to the US futures falling as the Chinese ‘Treason’ Law in Hong Kong was passed.

Once again, the rotation into the big banks drove returns with National Australia Bank Ltd and ANZ Group both adding 4% for the day. Overnight, the Eurostoxx rallied for a fourth consecutive day, adding 1.4%, riding the wave of re-openings as consumer businesses like Hermes (+5%) moved forward. The US market gave up gains of around 1% to finish down 0.6% as President Trump flagged a press conference on China on Friday. Trader’s should be looking to sell given the history of such announcements over weekends.

Winners & losers

For anyone that has been working at home constantly hearing drills, nail guns or general construction activity, there will be no surprise that Australia’s construction gauge fell just 1% for April, to $49 billion. This is supported by the likes of Boral Ltd (ASX: BLD), which now faces a second class action over the disastrous US windows acquisitions.

In a sign that renegotiations may be the new normal, Wisetech Global (ASX: WTC), announced the earnouts on 17 recent acquisitions had been renegotiated — saving millions. European Toll Road operator Atlas Arteria (ASX: ALX) was the next company to seek capital, wanting over $500 million, to avoid debt covenants, with the deal priced at $6.20 (around a 10% discount). The ‘deferred’ dividend was also cancelled.

Did CBA & ANZ miss an opportunity?

There is no doubt the likes of ANZ and the Commonwealth Bank of Australia (ASX: CBA) may have some envy towards NAB. The company managed to pay its reduced dividend and then raise an oversubscribed Share Purchase Plan to $1.25 billion. There is clearly some question around whether a ‘deferred’ dividend is simply a cancellation.

Nearmap Ltd (ASX: NEA) announced it had reached $102 million in annual contracted revenue after releasing its commercially available AI platform, which offers digital imaging and assessments. Finally, Hewlett Packard or HP (NYSE: HPC) announced an 11% fall in quarterly sales of $12.5 billion as laptop demand remained flat but its core printing (-19%) and desktop sales (-18%) fell off a cliff.

The daily report is written by Drew Meredith, Financial Adviser and Director of Wattle Partners.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

General Financial Advice warning
The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

© Rask Australia 2020

Join 20,000+ smart investors

Join the Rask Australia mailing and we’ll send you free investment reports, podcasts, expert insights, investing courses, ASX news and lots, lots more. All free. 

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian-owned.

feedback-icon

What can we do better?

Howdy, ASX investor.

I really care about your experience today.

Please, let me know if you have any suggestions we can use to improve our site and help others invest in ETFs. 

Cheers! 

Owen Rask