ASX drops on day 1 of new fiscal year, Robinhood gets record fine for harming millions of customers

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The Australian stock market fell on the first day of the new fiscal year and the Robinhood stock trading platform was fined more than $ 90 million for cheating on its clients.

As of 1:10 p.m. AEST, the All Ordinaries Index had fallen from its lows and was down 0.3% to 7.565.

The ASX 200 index fell 0.3% to 7,289.

Today, most sectors were in the red with consumer companies, banks, oil stocks and health care falling.

Miners, education stocks, industries and utilities made gains.

The best performers in the ASX 200 index were gold miner Regis Resources (+ 7pc), software company Nuix (+ 6.3pc) and gold miner St Barbara (+ 6.2pc).

The ASX 200 had its best fiscal year on record in 2020-2021, increasing 24% despite the pandemic.

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Sept relaunches Boral’s takeover bid

Seven increased its takeover bid for building materials company Boral to $ 7.30 per share.

The company said it had enough investors ready to sell to increase its stake in Boral to 29% and would increase the offer to $ 7.40 per share if it increased its stake in Boral to 34.5% d ‘by July 7.

Shares of Seven rose 0.9% to $ 20.53 at 12:40 am AEST while shares of Boral rose 0.3% to $ 7.37.

Lendlease said harsh conditions caused by the coronavirus would hurt its annual profit, and its shares fell (-3pc).

He predicts that net profit for 2021 could be between $ 200 million and $ 320 million.

The property developer said he was affected by COVID-19 around the world, particularly in the UK, with lockdowns in London causing delays in purchases, investments and rentals.

Chalice Mining (-5.4p) and Metcash (-4.8pc) also fell.

Westpac (-0.3 percent) said it has completed the $ 725 million sale of its general insurance business to Allianz.

Former Commonwealth Bank boss Ian Narev takes up his new role as managing director of the job website Seek (+0.4 pc) today, replacing Andrew Bassat.

REA Group (-0.5 pc) bought mortgage broker Mortgage Choice for $ 244 million.

Oil prices edged up, with Brent crude at US $ 74.67 per barrel, up 0.1%.

Spot gold rose 0.2 percent to US $ 1,774 an ounce.

The Australian dollar lost 0.1% to 74.88 cents US at 12:50 am AEST.

Economic data showed that China’s manufacturing industry grew at a slower pace in June.

Robinhood has received a record fine for misleading its clients.(

Getty Images via AFP: Justin Sullivan

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Robinhood fined record $ 93 million

The US financial regulator has fined the Robinhood Financial stock trading platform for systemic oversight failures and significant harm suffered by millions of customers since September 2016.

The Financial Sector Regulatory Authority (FINRA) ordered Robinhood to pay a record $ 70 million ($ 93 million) to compensate millions of customers who received false and misleading information, were affected by system crashes and thousands of customers who were allowed to trade options even when it was not appropriate for them to do so.

Robinhood markets itself as a democratization of stock trading and investing through its commission-free app that uses algorithms.

FINRA Executive Vice President and Chief Enforcement Officer Jessica Hopper said the fine sends a clear message that all companies must comply with the rules governing the exchange industry.

“Following these rules is not optional and cannot be sacrificed in the name of innovation or the willingness to ‘break things’ and fix them later,” Hopper said.

The fine is the latest blow to Robinhood’s reputation, as the company plans to go public.

The company has come under intense scrutiny from U.S. lawmakers and regulators after the memes market frenzy earlier in the year, which raised questions about its business model, risk management and its treatment of customers.

FINRA said a Robinhood client committed suicide in June 2020 after being confused by messages on his account that appeared to show he had turned off margin trading and incorrectly showed a negative cash balance.

He said thousands of other customers have suffered losses of more than $ 7 million due to similar incorrect claims.

FINRA also accused Robinhood of failing to properly oversee its technology and failing to report thousands of customer complaints.

Robinhood neither admitted nor denied the charges, but agreed to FINRA’s findings.

The company said it was reorganizing its business, installing new oversight and communication procedures, and hired former regulators.

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Didi’s value reaches 107 billion dollars

Shares of Chinese rideshare giant Didi soared more than a quarter in early New York Stock Exchange trading to a total value of $ 80 billion ($ 107 billion), the largest sale of shares by a Chinese company from Alibaba. raised $ 25 billion in 2014.

But stocks then ran out of steam.

A taxi driver is reflected in a rear view mirror when using the Didi app.
Chinese transport giant Didi Global is worth $ 90 billion after being listed on the New York Stock Exchange.(

Reuters: Jason Lee

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Didi shares closed up 1% at US $ 14.14, valuing it at US $ 68 billion ($ 90 billion).

Didi is the latest Chinese company to seek to capitalize on US market records.

The company is backed by tech giants SoftBank, Alibaba, Tencent, and Uber.

It was founded in 2012 by General Manager Cheng Wei as a taxi application.

Its stake now stands at approximately $ 4.5 billion.

The company operates at 4,000 locations in 16 countries, including Australia, and is a leader in the online ridesharing industry in China.

Its business includes car transport, bicycle sharing, delivery, freight and logistics.

The S & P500 ends in style

US investors set more records overnight at the end of the June quarter.

The S&P 500 Index marked its fifth consecutive closing record and fifth quarterly gain as investors awaited the latest US jobs report on Friday.

Oil stocks pulled the index up, while real estate companies fell.

For the quarter, the S&P 500 rose 8.2%, the Dow Jones index gained 4.6%, while the Nasdaq rose 9.5%.

Robert Pavlik of Dakota Wealth said the quarter had been good, with investors favoring growth stocks.

The Dow Jones Industrial Average rose 0.6% to 34,503, the S&P 500 gained 0.1% to 4,298 and the Nasdaq Composite fell 0.2% to 14,504.

Leisure and hospitality jobs stimulate

The greenback hit its highest in more than two months against a basket of currencies.

It was boosted by economic data showing that the US private sector payroll increased by 692,000 in June, more than expected.

Nearly half of the jobs were in recreation and hospitality, according to ADP’s national employment report.

There have also been increases in construction jobs, but the manufacturing industry has slowed due to labor shortages and the higher cost of raw materials.

A global semiconductor shortage is weighing on automobile production and the production of some household appliances.

But revised data for May showed fewer jobs were created than the 978,000 initially reported.

Rubeela Farooqi, chief economist at High Frequency Economics in New York City, said the job market was improving.

“The job market continues to heal,” he said.

“Job growth is expected to accelerate with the wider reopening, but the timing is uncertain as it is not clear how quickly supply constraints will ease.”

Home purchase contracts rose in May, but loan applications fell last week.

More than 150 million Americans have been vaccinated against the coronavirus.

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