Third day of gains: Aus shares 0.3% higher at noon

Market Reports

by Jessica Amir

The Australian share market extended its run and is charging up for the third straight session, gaining 0.3 per cent at noon, with over half of the market’s sectors in profit territory.

Financials, Consumer Staples and Telcos are seeing the most gains at noon. Materials are also boding well with the likes of St Barbara (ASX:SBM) rising 5.9 per cent after the gold price rose above US$1,200.

The S&P/ASX 200 index is 19 points up at 6196. On the futures market the SPI is 34 points higher.

Local economic news

Retail sales rose 0.3 per cent in August according to the ABS, beating the 0.2 per cent consensus expected.

Meantime, AIG reported that the construction industry slowed for the first time in 20 months, according to AIG’s Construction Index which fell 2.5 points to 49.3 in September. (Readings below 50 indicate a contraction in activity. Above 50 indicates growth). It disappointed the market with forecast the sector would grow from the prior month’s 51.8 point reading to 55.7.

Company news

Beach Energy Limited (ASX:BPT) downgraded its guidance levels following the Victorian Otway $344 million proposed sale it announced earlier today. It advised its earnings (EBITDA) FY19 guidance will drop from the range of $1.1 billion to $1.2 billion to $1.05 billion to $1.15 billion. Its upper production FY19 guidance limit will also drop from 28 to 27 Million Barrels of Oil Equivalent (MMboe) if the sale of its 40 per cent stake goes ahead. Shares in Beach Energy (ASX:BPT) are down 3.42 per cent to $2.12 at noon. 

New Century Resources Limited (ASX:NCZ) returned its transshipment vessel to Karumba with the base metal developer to ship its first zinc concentrate shipment in late October. The miner has received $27.2 million in revenue to date from concentration sales. New Century Resources (ASX:NCZ) are trading 4.37 per cent higher to $0.96.

Best and worst performers

The best performing sector is S&P/ASX Telco Services adding 0.5 per cent, while the worst performing sector is S&P/ASX Real Estate Investment Trusts, shedding 0.3 per cent.

The best performing stock in the S&P/ASX 200 is St Barbara Limited (ASX:SBM), 5.89 per cent to $3.69 followed by shares in Carsales.com Limited (ASX:CAR) and Washington H Soul Pattinson & Company (ASX:SOL).

The worst performing stock in the S&P/ASX 200 is Western Areas Limited (ASX:WSA), dropping 3.9 per cent to $2.71, followed by shares in Beach Energy Limited (ASX:BPT) and Appen Limited (ASX:APX).

Asian markets

Japan’s Nikkei has lost 0.42 per cent, Hong Kong’s Hang Seng has lost 0.01 per cent and the Shanghai Composite is not trading due to a public holiday.

Gold and the dollar

Gold is trading at US$1,200 an ounce.
One Australian dollar is buying 70.76 US cents.

Cryptocurrencies

Bitcoin has gained 0.43 per cent to US$6,601, Ethereum fallen 0.4 per cent to US$223 and EOS has gained about 1.98 per cent to US$5.78.