Gross Domestic Product fell 0.3% in the March quarter: ASX tracking 0.9% higher at noon

The Australian share market shot up at the open and is now tracking almost 0.9 per cent higher at noon. Banks are performing well so far this morning following GDP and building approvals from the ABS earlier today. Shares in SkyCity (ASX:SKC) rose as they announced they expect total annualised cost savings of around NZ$50 million. Shares in SilverLake Resources (ASX:SLR) are down.

The S&P/ASX 200 index is 49 points up at 5,885. On the futures market the SPI is 54 points higher.

Local economic news

The Australian Gross Domestic Product fell 0.3 per cent in seasonally adjusted, chain volume terms in the March quarter 2020 and growth slowed to 1.4 per cent through the year, according to figures released by the Australian Bureau of Statistics (ABS) today.

The number of dwellings approved rose 1.0 per cent in April, in trend terms.

Broker moves

Macquarie rates JB Hi Fi (ASX:JBH) as an Upgrade to an Outperform from a Neutral. They believe the company may surprise to the upside at the FY20 results. Recent feedback has indicated strong demand for electronics and hardware continued throughout May.The broker also notes discretionary expenditure has been propped up by the increased earnings of the JobSeeker population as well as indications that funds from early superannuation access went towards discretionary expenditure.Target price is $41.00. Shares in JB Hi Fi (ASX:JBH) are currently 0.5 per cent higher $39.01.

Company news

Infigen Energy (ASX:IFN) is considering its response to the off-market takeover proposal from UAC Energy Holdings. They intend to make an all cash takeover bid of $0.80 per Infigen stapled security. UAC has acquired an aggregate interest in 12.82 per cent of the stapled securities in Infigen. advising its shareholders not to take action at this time. RBC Capital Markets believes the offer is attractive given its 36 per cent premium to its last closing price. Shares in Infigen Energy (ASX:IFN) are trading 35.2 per cent higher at $0.80.

Best and worst performers

The best-performing sector is Financials gaining 2.3 per cent, while the worst performing sector is Healthcare losing 0.6 per cent.

The best performing stock in the S&P/ASX 200 is SkyCity Entertainment Group (ASX:SKC) rising 9.6 per cent to $2.62, followed by shares in Unibail-Rodamco-Westfield (ASX:URW) and South32 (ASX:S32).

The worst performing stock in the S&P/ASX 200 is SilverLake Resources (ASX:SLR) dropping 7.8 per cent to $2.08, followed by shares in Evolution Mining (ASX:EVN) and Regis Resources (ASX:RRL).

Asian markets

Higher: Japan’s Nikkei has gained 1.4 per cent. Hong Kong’s Hang Seng has added 1.2 per cent and China’s Shanghai Composite has added 0.5 per cent.

Commodities and the dollar

Gold is trading at US$1,727 an ounce.
Iron ore price is 0.9 per cent higher at US$101.32
Iron ore futures are suggesting a rise of 0.1 per cent.
One Australian dollar is buying 69.32US cents.