TechnologyOne (ASX:TNE) shares drop despite posting profit increase: ASX tracking 0.04% higher at noon

Market Reports

by Rachael Jones

The Australian share market rose at the open only to dip in the first hour of trade and is now tracking 0.04 per cent higher at noon. The A2 Milk (ASX:A2M) company has lifted its earnings margin forecast on the back of improved price yield and a reduction in the cost of goods sold seeing their shares rise this morning. Meanwhile, software company, TechnologyOne (ASX:TNE) has posted a 50 per cent increase in profit to $76.4 million for the financial year ending 20 September 2019. Despite this their shares are down over 3 per cent today.

The best-performing sector is consumer staples while the worst performing sector info tech.

The S&P/ASX 200 index is 3 points up at 6,770. On the futures market the SPI is eyeing a 5 point fall.

Economic News

The Reserve Bank released the minutes from their meeting on the 5th November today showing board members did acknowledge there was a case to cut the cash rate to a new record low before leaving it unchanged at 0.75 per cent.

Broker moves

Credit Suisse has upgraded Coca-Cola Amatil (ASX:CCL) to a Neutral from an Underperform. They say the Australian business has been heading in the right direction over the past six months, highlighting its estimates have been ahead of the market.The target is raised to $11.00 from $9.40. Shares in Coca-Cola Amatil (ASX:CCL) are 0.1 per cent higher at $11.44

Company news

The Takeovers Panel has received an application from Zentree Investments in relation to an entitlement offer by Energy Resources of Australia (ASX:ERA). The Northern Territory uranium mining and production company earlier this month announced a 6.13 for 1 pro rata renounceable entitlement offer to raise approximately $476 million. It’s fully underwritten by North Limited, a wholly-owned subsidiary of Rio Tinto (ASX:RIO). The applicant submits that minority shareholders are not being given reasonable or equal opportunity to participate in benefits flowing to Rio Tinto. They are seeking to delay the offer period. Shares in Energy Resources of Australia (ASX:ERA) is 7.9 per cent higher at noon at $0.17.

The Mirvac Group (ASX:MGR) today announced the appointment of Alan Robert Sindel as NonExecutive Director on the Board, effective net August. With the resignations of Elana Rubin and John Peters, and this appointment the Board has taken the opportunity to review the composition of the Audit, Risk and Compliance Committee (ARCC). Shares in the Mirvac Group (ASX:MGR) is 0.2 per cent higher at $3.27.

Best and worst performers

The best-performing sector is consumer staples, adding 1.1 per cent, while the worst performing sector is Info Tech, shedding 1.9 per cent.

The best performing stock in the S&P/ASX 200 is The A2 Milk Company (ASX:A2M) rising 11.7 per cent to $13.43, followed by shares in Chorus (ASX:CNU) and Regis Resources (ASX:RRL).

The worst performing stock in the S&P/ASX 200 is Wisetech Global (ASX:WTC), dropping 8.1 per cent to $26.53, followed by shares in Pro Medicus (ASX:PLS) and Technology One (ASX:TNE).

Commodities and the dollar

Gold is trading at US$1,472 an ounce.
Iron ore price is 0.9 per cent higher to US$85.77.
Iron ore futures are pointing to a fall of 0.3 per cent.
One Australian dollar is buying 67.86 US cents.