The Australian sharemarket has opened the week firmly higher, extending its rebound and is trading at an 11 week high. Energy is among the best performing sectors with a 2.3 per cent rise. The upwards move comes despite oil prices slipping in late trade on Friday amid strained US-China relations. The stellar start comes as geopolitical tensions threaten to boil over with Beijing accusing the US of pushing relations to a “new cold war.” While China’s Foreign Minister has warned countries against interfering with its “internal affairs” in Hong Kong as China prepares to impose new national security legislation on Hong Kong.
The S&P/ASX 200 index is 1.7 per cent or 92 points higher at 5,589. On the futures market the SPI is 87 points up.
UBS remains bearish on Afterpay (ASX:APT) despite the company’s recent US customer increase to 5 million. The investment bank has maintained its sell rating and upwardly revised its target price to $14. Shares in Afteray (ASX:APT) are currently 6.6 per cent higher at $47.44.
Meantime Morgans has upgraded TPG Telecom (ASX:TPM) to add from hold. The upgrade comes as Vodafone Australia prepares to acquire a 50.1 per cent stake in TPG Telecom in mid-July. The union is the largest telecom merger in Australia to date. TPG Telecom shares are trading 4.2 per cent higher at $8.13.
Plus-sized fashion retailer City Chic (ASX:CCX) Collective’s online sales have surged 57 per cent and traded profitably across its whole business in the past two months, despite its 100-odd stores being shut and a plunge in retail sales.
The company says its extensive online division has put it in exceptionally good stead for weathering the coronavirus shutdown, with the majority of its business continuing to trade. Two-thirds of City Chic’s revenue is derived from digital sales.
Shares in the company are 9.4 per cent higher at $2.67 in early trade
Murray Goulburn Co-operative (ASX:MGC) says it will write to shareholders in the coming days seeking an Extraordinary General Meeting to vote on the group's liquidation.
The co-op, which was formerly the county's largest dairy processor, sold its business and operations to Saputo Dairy Australia in 2018 and has since been consumed with class actions and legal proceedings.
The company and certain former directors have been embroiled in battles with shareholders and the corporate regulator following a series of issues connected to farm-gate pricing decisions in 2016.
Shares in Murray Goulburn (ASX:MGC) are trading 0.6 per cent lower at 43 cents.
Best and worst performers
The best-performing sector is information technology which is 2.7 per cent higher, while the sector with the fewest gains is materials trading 0.7 per cent higher.
The best performing stock in the S&P/ASX 200 is Webjet (ASX:WEB) rising14.2 per cent HIGHER to $4.11, followed by shares in Flight Centre (ASX:FLT) and Viv Energy Group (ASX:VEA).
The worst performing stock in the S&P/ASX 200 is Technology One (ASX:TNE) dropping 3.7 per cent to $9.54, followed by shares in Perenti Global (ASX:PRN) and Monadelphous Group (ASX:MND).
Telehealth company InteliCare (ASX:ICR) has debuted on the ASX today with an issue price of 20 cents, launching at 39 cents it’s currently trading at 30 cents. The company’s aim is to help older people stay in their homes for longer and delay their entrance to aged care facilities. Intelicare fits a suite of smart sensors throughout a home that is connected to an AI platform.
Higher: Japan’s Nikkei is up 1.2 per cent, Hong Kong’s Hang Seng has added 0.1 per cent and China’s Shanghai Composite has added 0.2 per cent.
Commodities and the dollar
Gold is trading at US$1,728 an ounce.
Iron ore price is 0.6 per cent lower at US$97.65
Iron ore futures are suggesting a fall of 0.4 per cent.
One Australian dollar is buying 65.38US cents.