Super Retail Group (ASX:SUL) shares take a dip despite reporting sales growth: ASX 0.2% higher at noon

Market Reports

by Rachael Jones

The Australian share market opened higher following positive leads from Wall Street and is now tracking 0.2 per cent higher at noon. Shares in Super Retail Group (ASX:SUL) dropped this morning despite reporting that the Group delivered total sales growth of 4.2 per cent. More on this later. Coal mining powerhouse Whitehaven (ASX:WHC) saw a rise in their shares this morning despite warning continued weakness in thermal coal prices. The miner’s FY20 guidance remains unchanged since issued to the market on 15 August 2019.Shares in Treasury Wines (ASX:TWE) are moving back up after falling over 11 per cent on Monday on the back of the shock retirement of chief executive Michael Clarke. The Energy sector is leading the way and the Communication sector trailing behind in the first two hours of trade.

Broker moves

Macquarie has downgraded property development company Stockland (ASX:SGP) to Underperform from a Neutral. Target price is $4.46 Current Price is $4.83 the difference is minus $0.37 - the current price is over target. Residential deposits were up 36 per cent quarter on quarter but down minus 11 per cent on the prior September quarter. The company expects net deposits to improve over FY20 and FY21 revenue should benefit from settlement volumes. Shares in Stockland (ASX:SGP) are trading 2.5 per cent lower at $4.79.

The S&P/ASX 200 index is 0.2 per cent higher or 16 points higher at 6,668. On the futures market the SPI is pointing to a rise of 24 points.

Company news

Shares in Super Retail Group (ASX:SUL) dropped this morning despite reporting that the Group delivered total sales growth of 4.2 per cent and like for like sales growth of 3.2 per cent in the first 16 weeks of 2019/2020. Managing director and chief executive Anthony Heraghty did note though that the highly competitive environment was driving a higher mix of promotional sales and deeper discounting on key value items. Shares in Super Retail Group (ASX:SUL) are currently trading 4.2 per cent lower at $9.16.

Best and worst performers

The best-performing sector is Energy adding 0.8 per cent, while the worst performing sector is Communication Services, shedding 0.3 per cent.

The best performing stock in the S&P/ASX 200 is CYBG (ASX:CYB), rising 6.8 per cent to $2.67, followed by shares in South 32 (ASX:S32) and Whitehaven Coal (ASX:WHC).

The worst performing stock in the S&P/ASX 200 is Orocobre (ASX:ORE), dropping 5.1 per cent to $2.25, followed by shares in Pro Medicus (ASX:PME) and Super Retail Group (ASX:SUL).

Commodities and the dollar

Gold is trading at US$1,483 an ounce.
Iron ore price fell 1.1 per cent to US$85.40
Iron ore futures are pointing to a rise of 1 per cent.
One Australian dollar is buying 68.75 US cents.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.