Middle of the day lift for ASX: 0.7% higher at noon

Market Reports

by Rachael Jones

The Australian share market has rebounded from its three day sell off with most sectors trading higher at noon and just Materials lagging, despite the iron ore price trading under US$67. Wealth manager IOOF (ASX:IFL) saw a huge drop in their shares after APRA notified them last night that they are calling on disqualifying a host of senior executives. Stay tuned for more on this later. The S&P/ASX 200 index is 0.7 per cent higher or 41 points up at 5699. On the futures market the SPI is 6 points lower.

Broker Moves

GrainCorp (ASX:GNC) had its hold rating reiterated by Bell Potter, while the broker upgraded agribusinesses 12-month price target to $9.00 (up from $7.50). It comes after the company received a $2.4 billion takeover offer from investment manager, Long-Asset Term Partners for $10.42 per share. Shares in GrainCorp (ASX:GNC) 0.65 per cent lower at $9.15.

Company news

Cement manufacturer Adelaide Brighton (ASX:ABC) has dropped its profit guidance by about $15 million for the full 2018 year, on the back of weaker than expected demand. The business is also tipping its underlying net profit after will fall from the prior corresponding period’s $190 million, to between $188 and $195 million. Shares in Adelaide Brighton are trading 8.4 per cent lower at $4.71 at noon.

Proceedings have begun to disqualify five senior employees from wealth manager IOOF (ASX:IFL) for failing to act in their members' interests. The senior executives include Managing Director Chris Kelaher and Chairman George Venardos. IOOF released a statement this morning saying it believes that these allegations are misconceived, and it and its executives intend to vigorously defend the proceedings. Shares in IOOF (ASX:IFL) 33.5 per cent lower to $4.77.

IncentiaPay (ASX:INP) is pleased to announce the appointment of Darius Coveney as an Executive Director of the Company. He joined the Company in January and brings over 20 years of experience in the technology and finance industry across Australia, Asia, Europe and the Americas. IncentiaPay (ASX:INP) dropped 71.8 per cent to $0.02

Best and worst performers

The best performing sector is Healthcare adding 2 per cent, while the worst performing sector is Materials, still gained though 0.1 per cent.

The best performing stock in the S&P/ASX 200 is Coles Group (ASX:COL), rising 4.4 per cent to $12.63, followed by shares in Origin Energy (ASX:ORG) and Goodman Group (ASX:GMG).

The worst performing stock in the S&P/ASX 200 is IOOF (ASX:IFL), dropping 33.5 per cent to $4.77, followed by shares in Adelaide Brighton (ASX:ABC) and Southern Cross Media Group (ASX:SXL).

Commodities and the dollar

Gold is trading at US$1,240 an ounce.
Iron ore price fell 0.8 per cent to US$66.59 and its futures are pointing to a fall of 0.8 per cent.
One Australian dollar is buying 72.31 US cents.