Four day run, nib upgrade leads rally: Aus shares 0.2% higher

Market Reports

by Jessica Amir

The Australian share market has extended its four-day run, with the local bourse recouping its losses each day, clawing back up from the market nosedive of 2.8 per cent on Thursday.

Finanicals are leading the rally today, and are trading over 1 per cent higher with Utilities, Industrials and Energy following.

nib Holdings (ASX:NHF) is seeing a lot of buy in and leads the financials after upgrading its operating profit guidance.

Broker moves

Citi announced ANZ’s (ASX:ANZ) FY18’s results were on par with investors’ expectations, with cash earnings from continuing operations about 1 per cent higher than consensus and Citi’s expectations, with its cash profit hitting $6.49 billion. Despite the headline result being a 5 per cent fall compared to the same time last year, Citi also upgraded its buy position in the stock with a price target of $30.50 and forecasted an expected return of 25.2 per cent. The bank trades 1.7 per cent higher at noon. 

The S&P/ASX 200 index is 11 points (or 0.19 per cent) higher at 5,816 at noon. On the futures market the SPI is 16 points higher.

Local economic news

The Consumer Price Index, Australia’s key measure for inflation grew 0.4 per cent in the September quarter, in line with the consensus forecast and also following the June quarter 0.4 per cent rise. Over the year the CPI rose 1.9 per cent, having previously fallen 2.1 per cent year on year in the June quarter.

Company news

Lynas Corporation (ASX:LYC) shares have extended their 5-day rally, with the rare-earths mining company quashing media reports about a Review Committee holding a public hearing about its Malaysia site. Lynas did, however, say it welcomes public hearings, but stands by the fact that it can hold the non-hazardous and non-toxic matter NUF at the site until mid-February 2019. Lynas Corporation (ASX:LYC) shares are trading 16 per cent higher year-on-year. Today its 5.61 per cent higher to $2.07 at noon. 

Travel agency, Corporate Travel Management (ASX:CTD) shares have taken a stumble after being short sold, falling the most out of the top 200 stocks. It comes as the company responded to a damming report from investment company, VGI Partners which identified 20 alleged issues with the business. The allegations ranged from clients cash balances being low compared to its peers to having poor revenue quality. Year-on-year its shares are have fallen 7.6 per cent. Today Corporate Travel Management (ASX:CTD) shares are trading 22.3 per cent lower at $21.49 at noon.

IPOs

Air, sea and customs clearance and logistics services business, Wiseway Group (ASX:WWG) started trading today. It floated with an issue price of $0.50, opened at $0.45 and its trading at $0.42.

Best and worst performers

The best performing sector is S&P/ASX Financials adding 1.2 per cent, while the worst performing sector is S&P/ASX Telco Services shedding 1.4 per cent.

The best performing stock in the S&P/ASX 200 is NIB Holdings (ASX:NHF), rising 7.97 per cent to $5.63, followed by shares in AMP (ASX:AMP) and Lynas Corp (ASX:LYC).

The worst performing stock in the S&P/ASX 200 is Corporate Travel Management (ASX:CTD), dropping 22.25 per cent to $21.49, followed by shares in Orocobre (ASX:ORE) and Wistech Global (ASX:WTC).

Commodities and the dollar

Gold is trading at US$1,221 an ounce.
Iron ore price rose 0.3 per cent to US$76.71 and its futures are pointing to a fall of 0.7 per cent.
One Australian dollar is buying 70.77 US cents.

Cryptocurrencies

Bitcoin has gained 0.18 per cent to US$6,349, Ethereum gained 0.34 per cent to US$198 and EOS has gained 0.24 per cent to US$5.1.