Post-budget rebound: ASX lifts 0.29% at noon

Market Reports

by David Chau

The morning after the Federal Budget was handed down, the Australian share market continued on with yesterday’s losses, dropping at the open.  However, after the first hour of trade, the local bourse rebounded – and it’s now in positive territory.

It’s no surprise that the Financials space are proving to be one of the biggest drags on the index, after Treasurer Scott Morrison announced big banks would be taxed on their balance sheet liabilities. Three of the big four banks are in the red, with ANZ being the only one currently in mildly positive territory – with a gain of just 0.05%.

Most other industry sectors are in the black today.

The S&P/ASX 200 index is tracking 0.28% (or 17 points) higher at 5,857 points. On the futures market, the SPI is 21 points higher.

Asian markets

Japan’s Nikkei and Hong Kong’s Hang Seng have both gained added 0.5 per cent each.
The Shanghai Composite has lifted 0.2 per cent.

Company news

South32 Limited (ASX:S32) has advised that production at Ilawarra Metallurgical Coal in FY17 is expected to be at least 10 per cent below its prior guidance of 7.9 million tonnes. The company says earlier this week elevated gas concentrations were recorded at Appin Area 7 where all personnel were safely evacuated. A revised production forecast will be released in due course, which will translate directly to sales given low inventory levels. Shares in South32 are trading down 4.21 per cent at $2.62.

WorleyParsons Limited (ASX:WOR) has been awarded a support services agreement with Ontario Power Generation for a five-year term, with options for two additional five-year terms. Under the agreement WorleyParsons will provide operations, maintenance and technical services, as well as owner support services. OPG produces electricity from two nuclear plants, generating power of 6,600 megawatts. Shares in WorleyParsons are trading up 0.46 per cent at $11.01.

Best and worst performers

The best performing sector is Industrials, gaining 0.7 per cent to 5753. Shares in Cleanaway Waste have risen 4.21 per cent and are trading at $1.36. Shares in Downer EDI and CIMIC Group are also stronger.

The worst performing sector is Teclos, falling 0.2 per cent to 1,541. Shares in Spark NZ have fallen 0.6 per cent, trading at $3.44. Shares in Telstra are lower while TPG is flat.

IPOs

G Medical Innovations listed today. The smart phone technology company issued at 20 cents, opened at 16 cents and is currently trading at 15 cents.

Commodities and the dollar

Gold is trading at $US1,222 an ounce.
The Australian dollar is buying $US0.7357.
 

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