ASX resets record high, Morgans say hold APN Industria REIT: ASX is tracking 0.7% higher at noon

Market Reports

by Melissa Darmawan

Text-only (non-video) report.

The Australian share market is off to a positive start continuing its momentum from yesterday resetting a record high. At noon, the S&P/ASX 200 is 0.72 per cent or 52 points higher at 7,270. Gains are mainly broad based with the outlier being the Consumer Discretionary sector down 0.7 per cent. Energy and Utilities are the biggest gainers with the likes of Worley (ASX:WOR) up 7.9 per cent while on the oil front, Woodside (ASX:WPL) is trading over 3 per cent followed by Oilsearch (ASX:OSH) and Santos (ASX:STO) amid the rise of oil prices. The major banks were also big contributors with ANZ (ASX:ANZ) trading up 1.5 per cent with Westpac (ASX:WBC) adding over 1 per cent while its peer Commonwealth Bank (ASX:CBA) tipped to fresh record highs before pulling back towards midday. The worst performing stock is agricultural company Costa Group (ASX:CGC) extending losses from May following their below expectation earnings released at their AGM last month. On the IPO front, Keypath Education International (ASX:KED) is down 0.3 per cent following its debut yesterday. Elsewhere, Galaxy Resources (ASX:GXY) is up 0.5 per cent on its upgrade to their full year production guidance.

ASX 200 futures

The SPI futures are pointing to a rise of 68 points.

Economic news

Retail sales rose 1.1 per cent in April, in line with economist forecasts while the national trade balance rose to $8.03 billion in April, slightly below expectations as released by the Australian Bureau of Statistics.

The international trade balance increased to $8,028 million in April.

Company news

Digital financier Humm Group (ASX:HUM) has upped its contactless payment game, following the introduction of the company’s digital card Humm TAPP as an instant and effortless gateway to buy-now-pay-later (BNPL) services.

Regenerative medicine developer Mesoblast (ASX:MSB) has reported a downturn in earnings, as revenue plunged during the three months ended 31 March this year.

Payment solutions provider Sezzle (ASX:SZL) has inked a three-year deal to host a deferred payments system for renowned retail channel Target’s in-store and e-commerce operations.

Broker moves

Morgans rates APN Industria REIT (ASX:ADI) as a hold with a price target of $3.28. The downgrade from a buy followed the company’s recent share price strength with the price target increased to $3.28 from $3.17. Draft valuations have increased for 17 of 23 properties by 11.9 per cent and the average cap rate has tightened by 51bps to 5.83 per cent. Shares in APN Industria REIT (ASX:ADI) are trading 1 per cent higher at $3.23.

Best and worst performers

The best-performing sector is Energy, up 2.73 per cent. The worst-performing sector is Consumer Discretionary, down 0.43 per cent.

The best-performing stock in the S&P/ASX 200 is Worley (ASX:WOR), trading 6.97 per cent higher at $11.97 followed by shares in IOOF Holdings (ASX:IFL) and AGL Energy (ASX:AGL).

The worst-performing stock in the S&P/ASX 200 is Costa Group Holdings (ASX:CGC), trading 3.23 per cent lower at $3.30 followed by shares in CSR (ASX:CSR) and Pointsbet Holdings (ASX:PBH).

Commodities and the dollar

Gold is trading at US$1908.17 an ounce.
Iron ore is 0.20 per cent higher at US$209.19 a ton.
Iron ore futures are pointing to a rise of 1.91 per cent.
One Australian dollar is buying 77.43 US cents.

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