Local bourse dragged down by BHP, CBA

The local share market ended the session slightly lower as investors took profits.

The local share market ended the session slightly lower, as declines in the two largest stocks, BHP and Commonwealth Bank, dragged on the bourse.

The benchmark S&P/ASX200 was down 12.988 points, or 0.22 per cent, at 5894.0 points, while the broader All Ordinaries index was down 15.30 points, or 0.26 per cent, at 5807.30 points.

IG chief market strategist Chris Weston said the macroeconomic backdrop is still positive despite the dip, saying investors are waiting for a new catalyst to drive the market forward.

“Ultimately, we’ve had a good run, we are just seeing some profit taking. That’s all it is,” he said.

“There’s nothing more to it than that, nothing’s changed, everything still looks quite positive, we’ve just had a really good run and at some stage people are going to take a bit off the table, you need new news to fuel the beast.”

In financials, NAB edged up 0.34 per cent to $32.57, Commonwealth Bank lost 0.35 per cent to $78.69, Westpac lowered 0.30 per cent to $33.41, and ANZ edged 0.16 per cent downward to $30.54.

BHP lost 0.71 per cent to $26.49 while Rio Tinto ticked up 0.29 per cent to $69.26.

Baby formula and food producer Bubs Australia soared 29.46 per cent, or 19c, to 83.5c, after the company revealed a 109 per cent hike in sales growth in the first quarter on the same period last year.

“The company has a strong balance sheet and is well positioned to consider opportunities consistent with our strategic ambitions,” said chief executive Nicholas Simms.

Meanwhile, A2 Milk gained 1.68 per cent to $7.25, Bellamy’s rose 3.52 per cent to $12.35 and Blackmores added 0.69 per cent to $139.50.

Vocus fell 0.36 per cent to $2.80, after it announced it would sell off its New Zealand assets, valued at around $400 million, a decision at odds with its previous goal to hold on to trans-Tasman operations.

In August, CEO Geoff Horth said the telco would be offloading some non-core assets in Australia but in the latest update he revealed the company’s circumstances had changed since then.

“Since announcement of the assets review, further inbound approaches have been received on assets across the entire Vocus portfolio,” the telco said.

Telstra gained 0.99 per cent to $3.56.

Elsewhere, Kogan gained 5.28 per cent to $4.59 after it announced it is expecting strong sales over the Christmas period, as it posted a jump in earnings for the September quarter.

In its first-quarter trading update, Kogan said its earnings before interest, taxes and amortisation for the September quarter rose 37.7 per cent compared to the corresponding period last year.

Meanwhile, the site’s active customer base tipped over one million in August, growing by 278,000 compared to the same quarter last year.

Myer fell 0.67 per cent to $0.745 after the company released its annual report revealing that chief executive Richard Umbers took a pay cut to $1.744 million, down from $1.896m in 2016, and comes as major shareholder Solomon Lew prepares to attack Myer over its performance at the retailer’s upcoming annual general meeting.

The Australian dollar was trading at US78.25c in late trade.