Stock watch

Bingo Industries

Macquarie retained its outperform recommendation on Bingo Industries but slashed its valuation on the waste management business in the wake of its downgraded earnings guidance on Monday. The company announced it was expecting flat earnings growth for the 2019 fiscal year, down from the 15 per cent to 20 per cent in ahd previously forecast.

Analyst Peter Steyn said while the nature of the update was disappointing, the 49 per cent drop in the company's share price seemed overdone, particularly with positive outcomes stemming from the company's purchase of Dial-a-Dump Industries (DADI).

He remained positive on the company, noting the company's strong balance sheet which he said was likely to support some capital management. Macquarie reduced its price target on Bingo from $2.75 to $1.50.

What moved the market

Housing boom

Australia's eastern state housing boom appears to have finally balanced the market, with growth in housing supply now outstripping demand and pushing house prices down according to HSBC chief economist Paul Bloxham. "As interest rates fell to support the rebalancing of growth after the mining boom, housing construction rose significantly, particularly in the eastern states," he said in a note on Tuesday. "However, after several years of high rates of housing construction, supply is now finally catching up to demand. This is part of the reason why housing prices are now falling in Sydney and Melbourne."

Iron ore

The price of iron ore edged higher on Monday on the back of stronger demand for the bulk commodity. Chinese steel mills are wary of rising iron ore prices with the country yet to feel the supply squeeze from Brazil however CBA mining and energy commodities analyst Vivek Dhar believes the market could remain balanced. "We think the stalemate between Chinese steelmakers and seaborne market may keep iron ore prices under $US90 a tonne for the being," he said, adding there still was the potential for the price to spike to $US100 a tonne. The price of the commodity rose 1.7 per cent to $US88.80 a tonne on Monday.

Aussie dollar

The Australian dollar has begun this week slightly weaker after a strong rally last week. The Aussie dipped slightly early on Tuesday morning against the US dollar at the US Commerce Department sent President Trump a report discussing the option of raising tariffs on automobile imports. The Aussie dipped slightly further following the release of the RBA meeting minutes. "The minutes were largely as expected as the last Monetary Policy Committee decision had been clearly explained through the Governor's speech after the meeting and the Monetary Policy Statement," said Capital Economics economist Ben Udy.

Copper

The price of copper was boosted on Monday amid concerns supply of the base metal would tighten just days after better-than-expected Chinese lending data suggested demand would remain robust. India's Supreme Court set aside an order by an environmental court that had allowed Indian mining company Vedanta to reopen one of its smelters in southern India. Meanwhile PT Freeport Indonesia, operator of the world's second largest copper mine, said its copper concentrate export permit expired on February 15 and it had not received any guidance for renewal.