ASX gains over week, Utilities bounce back: Aus shares slip 0.1% at noon

Market Reports

by Jessica Amir

The Australian share market snapped its three-day winning streak, and is trading 0.1 per cent lower at noon with half of the sectors in loss territory and Energy leading the drag after the oil price slipped 1.7 per cent to US$60.62 on oversupply fears.

While utilities are leading the other half of the market higher, after APA (ASX:APA) is starting to bounce back from yesterday’s loss of about 10 per cent after its purchase of CKI was blocked by the Federal Teasurer.

Overnight we saw Wall Street skid, as the Fed looks to stay course raising rates and the S&P500 fell 0.3 per cent, the Dow held firm and the Nasdaq lost 0.5 per cent.

Broker moves

REA Group (ASX:REA) had its buy rating maintained by Citi following its first-quarter revenue results coming in well ahead of expectations, despite lower listing volumes. Yesterday it gained 8 per cent, hitting a month and a half high. Today it’s trading 3.7 per cent higher.

Evolution Mining (ASX:EVN), Saracen Mineral Holdings (ASX:SAR) and St Barbara (ASX:SBM) have been upgraded to a buy position by Goldman Sachs (GS).

Northern Star Resources (ASX:NST) and Regis Resources (ASX:RRL) have been downgraded to a sell by Goldman Sachs (GS).

The S&P/ASX 200 index is 0.1 per cent lower or 8 points lower at 5,920. On the futures market the SPI is 50 points higher. Nevertheless, the chart says the ASX is on an uptrend.

Local economic news

The RBA advised GDP growth is expected to remain above trend, the current growth rate of consumption is set to continue and non-mining business investment is expected to become more 'broadly based'. These are just some of the statements made in today’s Monetary Policy Statement.

Meantime, the ABS advise home loans fell 1 per cent in September (seasonally adjusted terms), as expected.

Company news

Murray Goulburn Co-operative MG Unit Trust (ASX:MGC) has reached a settlement with the ACCC in relation to proceedings against MG. The ACCC will apply to the Federal court seeking declarations that MG and former MD Gary Helou allegedly contravened Australian consumer law from 29 February 2016 to 27 April 2016, for representations made on farmgate milk prices. Under the settlement, MG and Gary Helou will agree to the contraventions and the cost orders against him. MG will not be penalised. MG Unit Trust (ASX:MGC) shares are trading 3.1 per cent lower at $0.31 at noon.

Global property developer, Unibail-Rodamco-Westfield (ASX:URW) settled the €789 million sale of the Capital 8 Paris office building. Selling the central business distribution site to global real estate investment manager, Invesco Real Estate. Shares in Unibail-Rodamco-Westfield (ASX:URW) are trading 0.2 per cent lower at $12.49 at noon.

Best and worst performers

The best performing sector is S&P/ASX Utilities adding 2.1 per cent, while the worst performing sector is S&P/ASX Energy, shedding 0.7 per cent.

The best performing stock in the S&P/ASX 200 is G8 Education (ASX:GEM), rising 5.2 per cent to $2.23, followed by shares in Costa Group Holdings (ASX:CGC) and APA Group (ASX: PA).

The worst performing stock in the S&P/ASX 200 is Lendlease Group (ASX:LLC), dropping 16.7 per cent to $14.54, followed by shares in Corporate Travel Management (ASX:CTD) and Afterpay Touch Group (ASX:APT).

Commodities and the dollar

Gold is trading at US$1,222 an ounce.
Iron ore price rose 1.3 per cent to US$76.27 and its futures are pointing to a rise of 1.3 per cent.
One Australian dollar is buying 72.57 US cents.

Cryptocurrencies

Bitcoin has shed 1.3 per cent to US$6,442, Ethereum has fallen 2.5per cent to US$212 and Bitcoin Cash has lost 6 per cent to US$577, in the last 24 hours.