Materials sector on the up: ASX tracking 0.2% higher at noon

Market Reports

by Rachael Jones

The Australian share market rose at the open and after a dip in early trade is now tracking 0.2 per cent higher at noon. Shares in Resolute Mining (ASX:RSG) and Jumbo Interactive (ASX:JIN) are on the up as shares in Ausnet (ASX:AST) falter. The best-performing sector is Materials, while the worst performing sector is Utilities.

The S&P/ASX 200 index is 14 points up at 6,808. On the futures market the SPI is 22 points higher.

Broker moves

Morgans has downgraded Jumbo Interactive (ASX:JIN) from an Add to a Hold with a target price of $16.38. They say the company has taken the market by surprise with a decision to ramp up investment for the future in both its lottery reseller and SaaS businesses. Updated earnings guidance subsequently fell short of consensus expectations. Shares in Jumbo Interactive (ASX:JIN) added 4.9 per cent at $15.45.

Company news

Sequoia Financial Group’s (ASX:SEQ) wholly owned subsidiary InterPrac Financial Planning today signed a Sale Agreement and Cross Referral Agreement to provide wealth management solutions to the Yellow Brick Road group (ASX:YBR). InterPrac is purchasing YBR’s share of the rights to the recurring revenue streams currently derived from its wealth advice and life insurance distribution businesses. They have selected 56 existing YBR wealth advisers to operate under the AFSL of InterPrac after completing an onboarding process. If all selected YBR advisers transfer, this will drive up to an additional $10 million gross revenue over the first 12 months. The $2.5M purchase price is subject to the YBR advisers remaining exclusively authorised under InterPrac over the next three years. Shares in Sequoia Financial Group’s (ASX:SEQ) trading 4.7 per cent higher at $.0.23.

Best and worst performers

The best-performing sector is Materials, adding 0.9 per cent, while the worst performing sector is Utilites, shedding 0.6 per cent.

The best performing stock in the S&P/ASX 200 is resolute Mining (ASX:RSG) rising 7.7 per cent to $1.27, followed by shares in Jumbo Interactive (ASX:JIN) and Saracen Mineral Holdings (ASX:CTD).

The worst performing stock in the S&P/ASX 200 is Ausnet Services (ASX:AST), dropping 1.7 per cent to $1.74, followed by shares in GWA Group (ASX:GWA) and Atlas Arteria (ASX:ALX).

Commodities and the dollar

Gold is trading at US$1,511 an ounce.
Iron ore futures are pointing to a rise of 0.6 per cent.
One Australian dollar is buying 69.46 US cents.

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