Oiling up: Aus shares 0.7% higher at noon

Market Reports

by Jessica Amir

The Australian share market is continuing its bounce back with US crude prices pulling the local bourse higher. It comes as the US Crude price rose to a 4-year high, so we are seeing the Energy sector lead the rally today and Materials and Financials are following, leading most of the sectors higher.

Alumina Limited (ASX:AWC) is trading 9.32 per cent higher and is one of the best performers today among large companies, taking to the stock to a new 10-year high.

Broker moves

The Bank of Queensland (ASX:BOQ) was downgraded by UBS to a sell  on the back of 6 per cent miss versus consensus. Despite that, it’s trading 4 per cent higher.

Pact Group Holdings (ASX:PGH) was downgraded to a neutral from a buy position by Goldman Sachs, and the stock is being sold down today, trading 8.3 per cent lower.

Taking all of that into consideration the S&P/ASX 200 index is 40 points or 0.7 per cent higher at 6,187. On the futures market the SPI is 26 points higher.

Local economic news

Australia’s international trade data in August beat expectations, with the national balance of trade hitting $1.6 billion, beating the $1.4 billion surplus expected (seasonally adjusted terms). It was also a 4 per cent improvement from July’s surplus.

Company news

Lendlease (ASX:LLC) has completed $239 million of its buy-back. Meantime the $11 billion construction giant was upgraded to a buy by Citi with the international bank noting Lendlease is worth more today without engineering. Its trading 0.7 per cent lower at $18.84.

Magellan Financial Group Limited (ASX:MFG) announced Dr Brett Cairns has been appointed as CEO and Hamish Douglas will assume the Chairman position. Hamish will also keep his role as Chief Investment Officer and lead Portfolio Manager of its global equities team. At the same time it announced its funds under management grew $86 million in September. Shares in Magellan Financial Group Limited (ASX:MFG) are trading 7.85 per cent higher at $29.11 at noon.

Best and worst performers

The best performing sector is S&P/ASX Energy adding 1.5 per cent, while the worst performing sector is S&P/ASX Real Estate Investment Trusts, shedding 0.4 per cent.

The best performing stock in the S&P/ASX 200 is Alumina (ASX:AWC), rising 9.32 per cent to $3.05, followed by shares in Magellan Financial Group (ASX:MFG) and South32 (ASX:S32).

The worst performing stock in the S&P/ASX 200 is Pact Group Holdings (ASX:PGH), dropping 8.27 per cent to $3.44, followed by shares in Syrah Resources (ASX:SYR) and ST Barbara (ASX:SBM).

Asian markets

Japan’s Nikkei has lost 0.2 per cent, Hong Kong’s Hang Seng has lost 1.2 per cent and the Shanghai Composite is not trading due to public holiday in China. 

Commodities and the dollar

Gold is trading at US$1,198 an ounce.
One Australian dollar is buying 70.94 US cents.

Cryptocurrencies

Bitcoin has gained 0.9 per cent to US$6,589 and Ethereum has added about 0.7 per cent to US$225.