More positive news from Wall St, Telcos lead: ASX200 0.14% up at noon

Market Reports

by Jessica Amir

Following another stellar run on Wall Street, with the Dow Jones inking its fifth straight record high, the Australian share market opened higher, but dipped into the red and bounced back into the black just after midday.

Telcos are leading the charge today, recovering from yesterday’s selling, with Materials in as the second-best performer following a rise in the Iron Ore Price.

However, selling in Reits is dragging down the market and putting a lid on gains with Stockland (ASX:SGP) and Goodman Group (ASX:GMG) falling over 1.5 per cent.

The S&P/ASX 200 index is 9 points up at noon or 0.14 per cent higher at 5,729.

On the futures market the SPI is 17 points higher.

Asian markets

Japan’s Nikkei has added 1.43 per cent, Hong Kong’s Hang Seng has gained 0.15 per cent and the Shanghai Composite has added 0.17 per cent.

Local economic news 

Residential property prices rose 1.9 per cent in the June quarter 2017, according to the Australian Bureau of Statistics (ABS). The largest growth came from Melbourne with 3 per cent, followed by Sydney with 2.3 per cent, while Perth and Darwin prices fell.

And the Reserve Bank of Australia released its Bank Board Meeting Minutes from its meeting earlier this month, noting the cash rate is expected to remain unchanged throughout 2017 at 1.5 per cent, with financial markets expecting a rate hike by mid 2018.

Company news

Syrah Resources (ASX:SYR) has announced a $110 million capital raising with an institutional placement and a pro rata entitlement offer. The Australian industrial minerals and technology company is currently mining graphite in Mozambique. The funds will be used to further fund the Balama Graphite Project and accelerate its Battery Anode Material strategy. Shares in Syrah Resources (ASX:SYR) last traded at $3.80.

Alkane Resource (ASX:ALK) has revealed its Western NSW resource in Dubbo, is a very large deposit with 75.18 mega tonnes of mineral resources. The Toongi deposit was independently assessed, factoring in operating costs, product revenues and regulatory approvals. The mining and exploration company says about 18 metals are proved and recoverable from the site. Shares in Alkane Resource (ASX:ALK) are 1.43 per cent higher at $0.35.

Best and worst performers

The best performing sector is Telcos, gaining 0.68 per cent to 1,279.Shares in Tpg Telecom Limited (ASX:TPM) have risen 7.85 per cent and trading at $5.63. Shares in Vocus Group Limited (ASX:VOC) and Chorus Limited (ASX:CNU) are also stronger.

The worst performing sector is Reits, falling 0.89 per cent to 1,328. Shares in Goodman Group (ASX:GMG) have fallen 1.55 per cent, trading at $8.24. Shares in Westfield Corporation (ASX:WFD) and Gpt Group (ASX:GPT) are also lower.

Gold and the dollar

Gold is trading at $US1,307 an ounce and one Australian dollar is buying 79.72 US cents.
 

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