Beach Energy downgraded: Aus shares 0.7% lower at noon

Market Reports

by Katrina Bullock

The ASX200 is off to a rocky start this morning. The market opened a hair higher but has been on a downward trend leading into the middle of the session. The Energy and Financial Sectors are proving a drag on the market. Despite this, Afterpay Touch Group (ASX:APT) and the A2 Milk Company (ASX:A2M) are performing well.

The S&P/ASX 200 index is 43 points down or 0.7 per cent lower at 6,221. On the futures market the SPI is 47 points lower.

Broker moves

Goldman Sachs has downgraded Beach Energy (ASX:BPT) from a buy to a neutral, with a 12 month price target of $2.15. Their analysis showed that Beach Energy's free cash flow yield was below the industry average. Beach Energy's share price is heavily leveraged to oil and risk remains for gas demand and reserve estimates. Meantime Morningstar have also recommended that the stock is overvalued. Shares in Beach Energy (ASX:BPT) are trading 0.7 per cent lower at $2.08 at noon.

Company news

Funeral service provider, InvoCare (ASX:IVC) is undertaking a fully underwritten institutional placement to raise approximately $65 million. This will be followed by a Share Purchase Plan which will be capped at $20 million. The raising comes after the Company received a positive reaction to their 2018 financial year results. The proceeds of the capital raising will be used to provide incremental balance sheet flexibility. Shares in InvoCare (ASX:IVC) are in a trading hold but last traded at $14.34.

Best and worst performers

The best-performing sector is Real Estate Investment Trusts, adding 0.6 per cent, while the worst performing sector is Financials (excluding REITs), shedding 1.5 per cent.

The best performing stock in the S&P/ASX 200 is Afterpay Touch Group (ASX:APT) rising 2.15 per cent to $19.47, followed by shares in Northern Star Resources (ASX:NST) and Estia Health (ASX:EHE).

The worst performing stock in the S&P/ASX 200 is Infigen Energy, dropping 6.5 per cent to 50 cents, followed by shares in Automotive Holdings Group (ASX:AHG),and Ardent Leisure Group (ASX:ALG).

Commodities and the dollar

Gold is trading at US$1,286 an ounce.
Iron ore futures are pointing to a fall of 0.2 per cent.
One Australian dollar is buying 70.15 US cents.