The Australian share market opened higher this morning following strong economic headwinds from the US and Europe, including winds of change in the US-China trade war as they strike a partial deal. The S&P/ASX200 is tracking 0.8 per cent higher at noon. Most of the sectors are in the green. Energy is leading the charge, rallying 2.8 per cent on news that Santos (ASX:STO) is set to acquire a handful of ConocoPhillips’ northern Australian assets for approximately US$1.39 billion.
The S&P/ASX 200 index is 54 points higher at 6,661. On the futures market the SPI is 0.9 per cent higher.
Citi has rated plus sized retailer City Chic Collective (ASX:CCX) as a sell with a 12-month price target of $2.30. The company has recently acquired Avenue, a distressed seller, for a modest price which should result in synergies from improving the conversion of website traffic to sales and utilising the customer database. However the broker believes there is a chance the market becomes overly enthusiastic about the deal and, while liking the transaction, is mindful that synergies will take time. Shares in City Chic Collective (ASX:CCX) are trading 2.8 per cent lower at $2.82 at noon.
Investment and funds manager, 360 Capital Group (ASX:TGP) has entered into a deed of novation with Contact Asset Management over the management rights to URB Investment (ASX:URB). The Deed is conditional upon the URB/TOT Scheme of Arrangement being implemented. Under the Deed, 360 Capital Group will pay Contact $2.5 million for the management rights to URB and will enter into an arrangement for transitional services. Shares in 360 Capital Group (ASX:TGP) are trading 0.4 per cent lower at $1.13 at noon.
Medication management platform, MedAdvisor (ASX:MDR) has signed a three-year contract with Chemist Warehouse. Chemist Warehouse will use MedAdvisor’s PlusOne medication management software in over 450 pharmacies. The agreement is expected to generate $5 million over its 3 year term. This figure includes recurring software as a service licence fees, plus patient messaging fees paid by Chemist Warehouse, and a projected growth in revenue from new health programs facilitated and distributed by MedAdvisor. Shares in MedAdvisor (ASX:MDR) are trading 1.9 per cent higher at $0.05 at noon.
Best and worst performers
The best-performing sector is Energy, adding 2.8 per cent, while the worst performing sector is Communications, shedding 0.7 per cent.
The best performing stock in the S&P/ASX 200 is CYBG (ASX:CYB), rising 10 per cent to $2.37, followed by shares Fisher & Paykel Healthcare Corporation (ASX:FPH) and Santos (ASX:STO).
The worst performing stock in the S&P/ASX 200 is Saracen Mineral Holdings (ASX:SAR), dropping 5.8 per cent to $3.50, followed by shares in Silver Lake Resources (ASX:SLR) and Gold Road Resources (ASX:GOR).
Commodities and the dollar
Gold is trading at US$1,486 an ounce.
Iron ore price rose 0.1 per cent to US$93.76
Iron ore futures are pointing to a rise of 0.6 per cent.
One Australian dollar is 0.2 per cent lower buying 67.76 US cents.