Afterpay (ASX:APT) shares see a rebound: ASX flat at noon

The Australian share market is trading flat at noon at 6,772. On the futures market the SPI is 9 points lower.

Broker moves

UBS rates Zip Co (ASX:Z1P) as a Downgrade to a Sell from a Neutral. Australasian customer growth surpassed rival Afterpay (ASX:APT) in the first half and UBS expects cash operating earnings to be at breakeven in FY21. The broker envisages significant execution risks while capital requirements will continue to increase. Higher bond rates may also affect the cost of funding and valuation.
Target price is $6.40. Shares in Zip Co (ASX:Z1P) are 2.7 per cent lower at $8.54.

Company news

PlaySide Studios (ASX:PLY) signed a mobile platform games license agreement with MGM to develop and publish a first-of-its-kind video game based on the studio’s feature films, Legally Blonde and Legally Blonde 2: Red White & Blonde. The game will be free-to-play on iOS and Android mobile devices, and will combine puzzle and choice-based narrative mechanics with the empowering themes and positive messaging of the Legally Blonde brand. Shares in PlaySide Studios (ASX:PLY) are currently 4.4 per cent higher at $0.36.

Best and worst performers

The best-performing sector is Infotech, adding 4.2 per cent, while the worst performing sector is Energy, shedding 1.6 per cent.

The best performing stock in the S&P/ASX 200 is Ramelius Resources (ASX:RMS), rising 12.6 per cent to $1.61, followed by shares in Silver Lake Resources (ASX:SLR) and Afterpay (ASX:APT).

The worst performing stock in the S&P/ASX 200 is Fortescue Metals Group (ASX:FMG), dropping 5.9 per cent to $20.88, followed by shares in Rio Tinto (ASX:RIO) and Nufarm (ASX:NUF).

Commodities and the dollar

Gold is trading at US$1,718 an ounce.
Iron ore price fell 5.7 per cent to US$164.41.
Iron ore futures are pointing to a fall of 4.1 per cent.
One Australian dollar is buying 77.08 US cents.