5 things you need to know about the Australian sharemarket today

ASX opens flat, after weak leads from offshore markets

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Welcome to Thursday. Here are the five things I'm looking at today on the Australian sharemarket.

  1. The S&P/ ASX 200 Index (Index: ^AXJO) (ASX: XJO) has opened flat, after mixed results on Wall Street overnight, with the Dow Jones up 0.1%, and the S&P 500 index down 0.1%.
    But the bull market could be about to roar, as an estimated $68 billion worth of dividends tries to find a home. Broker Credit Suisse says around $10 billion of that went to self-managed super funds alone. And Goldman Sachs equity strategist Matthew Ross noted investors' love-affair with dividends continues,

    "It's still a market that really likes defensive, high yield income streams."

  2. Iron ore continues its slide, losing another 1.2% overnight to US$85.70 per tonne – another five-year low. The fall from above US$120 a tonne has wreaked havoc with junior miners' share prices over the past six months. BC Iron Limited (ASX: BCI) is down 53%, Mount Gibson Iron Limited (ASX: MGX) has lost 26%, while Atlas Iron Limited (ASX: AGO) is down more than 44%.
    At current or lower prices, all three may well be loss-making, unless they can dramatically cut production costs further. They could be forced into action very soon, with rising supply and falling demand showing no signs of ending.
  3. On the bright side, nickel miners like Western Areas Limited (ASX: WSA), Independence Group (ASX: IGO) and Panoramic Resources Limited (ASX: PAN) could surge today, after a Philippines senator called for the ban on nickel ore exports. Nickel prices jumped to a four week high on the London Metal Exchange, at US$19,075 a tonne overnight.
    We highlighted the rising nickel price and nickel miners and explorers that could benefit back in April. Since then, Western Areas and Panoramic are up 24% and 37% respectively.
  4. Tweet of the Day


    Will bank share prices be smashed? A number of headwinds seem to be rising.

  5. Stock of the Day – brought to you by Tim McArthur – Amcom Telecommunications Ltd (ASX: AMM). Tim says Amcom is a better bet than Telstra Corporation Ltd (ASX: TLS), and you can find out why in his article.
Motley Fool writer/analyst Mike King owns shares in Amcom and Telstra. You can follow Mike on Twitter @TMFKinga

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »