Commodities rally: Aus shares 0.3% higher at noon

Market Reports

by Jessica Amir

The Australian share market is on track for its second day of straight gains thanks to record leads from Wall Street with the S&P 500 hitting an all-time high, while the iron ore price rise is fuelling up the mining sector.

It’s been a bumpy ride in the first two hours of trade, but the energy sector is taking the cake as the stand out performer so far, after US cruse rose back to 2-year highs.

We also received better than expected construction data from the ABS, and that also is bolstering confidence.

But, a mixed bag of company news is putting weight on some top 200 companies which is putting a cap on gains. But broadly speaking the only two sectors in the red are Utilies and Telcos.

The S&P/ASX 200 index is 19 points up or 0.3 per cent higher at 5,982

On the futures market the SPI is 13 points higher.

Company news

Travel company, Webjet (ASX:WEB) upgraded its total transaction value and EBITDA guidance for FY18, following record and strong performance. Its TTV is now tipped to hit $3 billion, up from $1.95 billlion in the prior corresponding period, while its EBITDA is expected to grow to $80 million. At the same time the company also announced it’s restructuring its WebBeds management team into different geographical areas. The news not as favourable as the market thought and its shares are are trading 9.11 per cent lower at $10.78.

Sirtex Medical’s (ASX:SRX) therapy has been granted Spanish Ministry of Health approval, which allows hospital reimbursement. The company says as internal radiation therapy with the company’s SIR-Spheres (Y-90 resin microspheres) product will now offer reimbursement to patients for metastatic colorectal cancer and other therapies, demand and sales should rise dramatically. Shares in Sirtex Medical (ASX:SRX) are trading 1.27 per cent higher at $14.00

And Fisher and Paykel Healthcare Corporation (ASX:FPH) issued 3,700 shares to the market at an issue price of $3.57 as part of its share option plan. As a result, its share price fell about 4.8 per cent to $11.33 claiming a top spot as one of the worst fallers on the top 200 index.

IPOs

People Infrastructure (ASX:PPE) started trading today. The workforce management company floated with an issue price of $1.00, opened at $1.30 and is currently trading at $1.24.

Best and worst performers

The best performing sector is Energy, gaining 1.1 per cent to 10,180. Shares in Caltex Australia (ASX:CTX) have risen 1.9 per cent and trading at $34.50. Shares in Whitehaven Coal (ASX:WHC) and Oil Search Limited (ASX:OSH) are also stronger. 

The worst performing sector is Telcos, falling 0.3 per cent to 1,248. Shares in Vocus Group (ASX:VOC) have fallen 1.97 per cent, trading at $2.98. Shares in Spark New Zealand (ASX:SPK) and Chorus (ASX:CNU) are also lower. 

Gold and the dollar

Gold is trading at $US1,282 an ounce and one Australian dollar is buying 75.82 US cents.
 

Jessica Amir

Finance News Network
Jessica is the head of news and a senior finance journalist and presents bulletins including the Market Outlook, Market at Midday and Market Wrap. She also interviews ASX CEOs and leading fund managers. She joined FNN in January 2017 with over six years of broadcast journalism experience including with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for Prime 7 and WIN News. Jessica has worked in financial planning for over six years with leading wealth managers and in real estate.