Not a hump day: ASX soars 0.4% higher at noon

Market Reports

by David Chau

The Australian share market has followed overseas leads and started trading upwards this morning. It’s now tracking 0.4 per cent higher at lunchtime.

So far, the sector doing the most heavy lifting is Discretionaries. In particular, Tatts Group shares are performing exceptionally well, now that it’s come out of a trading halt, and announced a merger with gaming giant, Tabcorp.

On the other hand, it hasn’t been such a good day for the Materials sector, with BHP leading the losses.

The ASX 200 index is 21 points up at 5,432. On the futures market the SPI is up 20 points.

Company news

Charter Hall Group (ASX:CHC) will not be proceeding with the IPO of its Long WALE REIT today. The Group says it received significant retail demand for the $1.12 billion IPO of the REIT. However, its institutional offer of $350 million didn’t attract sufficient quality of support that the Group deemed appropriate to create an orderly market. Shares in Charter Hall are trading down 0.81 per cent at $4.90.

Propertylink Group (ASX:PLG) has secured a new long-term lease for two properties at Whiteside Road and Main Road in the Victorian suburb of Clayton South. The Group says it signed a 15-year lease for over 28,000 square meters, commencing 1 September 2017. Propertylink says the new lease has an immediate positive impact on the lease expiry profile across its investment portfolio – with the Weighted Average Lease Expiry increasing from 3.6 years to 4.2 years. Propertylink shares are trading up 5.1% at 77 cents.

Best and worst performers

The best performing sector today is Discretionaries, gaining 1.7 per cent to 2,164. Shares in Tatts Group have risen 14.9 per cent and trading at $4.13. Shares in APN Outdoor and Flight Centre are also stronger.

The worst performing sector is Materials, falling 0.2 per cent to 8,974. Shares in BHP have fallen 2.08 per cent, trading at $22.17. Shares in Fletcher Building and Orocobre are also lower.

IPOs

Gooroo Ventures (ASX:GOO) started trading today. The HR technology company floated with an issue price of $0.20, opened at $0.255 and is currently trading at $0.245.

Gold and the dollar

Gold is trading at $US1,264 an ounce.
The Australian dollar is buying $US0.7681.