Industrials boost the market: Aus shares 0.1% lower at noon

Market Reports

by Katrina Bullock

Despite opening higher and seeing an early spike in the first 15 minutes of trade, the ASX200 index is tracking 0.1 per cent or 6 points lower at noon, coming in at 6,174. Most sectors have seen positive movements today with Industrials leading the way thanks to strong performances from CIMIC Group (ASX:CIM), McMillan Shakespeare (ASX:MMS) and Seek (ASX:SEK). On the futures market the SPI is 14 points lower.

Company news

Essential network provider, Service Stream (ASX:SSM) has inked a contract with Telstra (ASX:TLS) to continue providing design and construction services to support Telstra’s wireless infrastructure network. The new agreement does not guarantee volumes. However, the revenue for similar services under the previous contract averaged approximately $80 million per annum. The contract will expire in June 2021 and gives Telstra the option to extend for one additional year. Shares in Service Stream (ASX:SSM) are trading 1.3 per cent higher at $2.30 at noon.

UGL, which is an engineering service provider and part of the CIMIC Group (ASX:CIM) have secured a contract for services on the Karratha Gas Plant, alongside their joint venture partner, Cape. The contract is expected to generate additional revenue to UGL of approximately $190 million and includes two further multi-year extension options. The joint venture will provide brownfields implementation services to the plant which is operated by Woodside Energy. Shares in CIMIC Group (ASX:CIM) are trading 2.15 per cent higher at $49.44 at noon.

Best and worst performers

The best-performing sector is Industrials, adding 0.7 per cent, while the worst performing sector is Materials, shedding 0.9 per cent.

The best performing stock in the S&P/ASX 200 is Bellamy's Australia (ASX:BAL), rising 6.9 per cent to $11.50, followed by shares in Emeco Holdings (ASX:EHL) and Nufarm (ASX:NUF).

The worst performing stock in the S&P/ASX 200 is Syrah Resources (ASX:SYR) dropping 4.78 per cent to $1.09, followed by Perpetual (ASX:PPT) and Regis Resources (ASX:RRL)

Commodities and the dollar

Gold is trading at US$1,295 an ounce.
Iron ore price rose 2.9 per cent to US$87.26.
Iron ore futures are pointing to a rise of 1.6 per cent.
One Australian dollar is buying 70.79 US cents.