Back in the black: Aus shares 0.24% higher at noon

Market Reports

by Carolyn Herbert

The Australian share market opened higher this morning, despite another slide in commodity prices overnight. The local bourse has been tracking sideways in the first two hours of trade and is now 0.24 per cent higher at noon. Consumer Staples are leading the charge today with the likes of Metcash (ASX:MTS) gaining close to 2 per cent, Consumer Discretionaries are also performing well. These gains are being offset by losses in REITs, followed by Telcos and Materials.

The S&P/ASX 200 index is 13 points up at 5,755. On the futures market the SPI is 6 points higher.

Company news

Genworth Mortgage Insurance Australia Limited (ASX:GMA) has provided the market with an update with respect to its customer portfolio. The insurer says its second largest customer has provided it written notice that they are terminating the exclusivity agreement for the provision of LMI from the 8th of April 2017. The LMI business underwritten under the contract represented 14 per cent of Gross Written Premium in 2016. Genworth says the termination of the contract does not affect guidance provided last month. Shares in Genworth are trading down 2.12 per cent at $2.77.

Orion Gold Limited (ASX:ORN) has announced an agreement with Tembo Capital to become a strategic investor. Tembo has agreed to invest $3 million in Orion’s current convertible note issue. It says the short term funding from the note issue will allow Orion to complete its acquisition of zinc-copper and gold-copper projects in South Africa. Shares in Orion Gold are trading up 5.26 per cent at $0.02.

Best and worst performers

The best performing sector is Staples gaining 1.1 per cent to 9,449. Shares in Treasury Wine Estates (ASX:TWE) have risen 3.05 per cent and trading at $12.49. Shares in Metcash (ASX:MTS) and Bradken (ASX:BKN) are also stronger.

The worst performing sector is REITs, falling 1 per cent to 1,344. Shares in Vicinity Centres (ASX:VCX) have fallen 2.1 per cent, trading at $2.80. Shares in Wesfield Corporation (ASX:WFD) and Iron Mountain (ASX:INM)are also lower.

Commodities and the dollar

Gold is trading at $US1,200 an ounce and the Australian dollar is buying $US0.7508.




 

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