FIRB approval for Avita (ASX:AVH) US move: Aus shares 0.3% lower at noon

Market Reports

by Katrina Bullock

The Australian share market is off to a weak start following mixed leads from Wall Street. It has been a see saw morning in early trade with the ASX200 down 0.3 per cent at noon. Most of the sectors are in the red, with the Health Care sector weighing heaviest on the market. Australian travel stocks are starting to recover, with Sydney Airport (ASX:SYD) finding its way on to the best performers list this morning.

The S&P/ASX 200 index is 20 points lower at 5,972. On the futures market the SPI is 33 points lower.

Broker moves

Macquarie rates Amaysim Australia (ASX:AYS) as an Outperform with a 12-month price target of $0.64. The company will acquire 77,000 mobile subscribers from Optus for $15.8 million. The broker expects the transaction will be modestly accretive in the 2021 financial year. This comes as Amaysim reiterates its 2020 financial year earnings guidance of between $33 and 39 million. Shares in Amaysim Australia (ASX:AYS) are trading 3.8 per cent lower at 51 cents.

Company news

Regenerative medicine company, Avita Medical (ASX:AVH) has received Foreign Investment Review Board approval to redomicile the company and its subsidiaries from Australia to the US. The company is currently primarily listed on the ASX, with has a secondary listing on the Nasdaq. The Nasdaq is now set to become the company’s primary listing, with ASX its second. The Board unanimously supports the decision to redomicile in order to reduce the costs, burden, resourcing and risks associated with dual financial reporting and compliance obligations. The company says the US is the largest market for the treatment ofburns and its immediate strategy is to grow its visibility and presence in that market. The move comes as no surprise given that the company derives virtually all of its revenue from the US, has no physical presence outside of the US, and a significant majority of its share capital is currently held by US investors. Shares in Avita Medical (ASX:AVH) are trading 0.5 per cent lower at 49 cents.

Best and worst performers

The best-performing sector is Financials adding 1.1 per cent, while the worst performing sector is Health Care, shedding 3.3 per cent.

The best performing stock in the S&P/ASX 200 is Pilbara Minerals (ASX:PLS), rising 8.6 per cent to 32 cents, followed by shares in Sydney Airport (ASX:SYD) and Bank of Queensland (ASX:BOQ).

The worst performing stock in the S&P/ASX 200 is IPH (ASX:IPH),dropping 5.4 per cent to $7.05, followed by shares in Pro Medicus (ASX:PME) and Unibail-Rodamco-Westfield (ASX:URW).

Commodities and the dollar

Gold is trading at US$1,713 an ounce.
Iron ore price fell 2 per cent to US$99.24
Iron ore futures are pointing to a fall of 0.9 per cent.
One Australian dollar is buying 69.44 US cents.