Iron ore price climbs to $108: ASX 0.5% higher at noon

Market Reports

by Rachael Jones

The Australian share market opened higher this morning and is now tracking half a per cent higher at noon. Wall Street was closed yesterday for Memorial Day. Fisher & Paykel Healthcare (ASX:FPH) shares have taken a dip despite yesterday announcing a record result for the year, with net profit after tax up 10 per cent. The iron ore price has risen to over $100 as Brazilian regulators are signalling delays in the restart of Vale's largest mine. Their Brucutu mine has been out of action since February amid concerns that dams were at risk of failing in the same way that Vale's Brumadinho dam failed in January, killing at least 231 people. As for the sectors today, the information technology, materials and energy sectors are outperforming this morning, while consumer staples, health care and utilities are dragging behind.

The S&P/ASX 200 index is 35 points up at 6,487. On the futures market the SPI is 30 points higher.

Broker moves

Shares in steel maker BlueScope Steel Limited (ASX:BSL) are falling after UBS cut its rating to “neutral” from a “buy” and lowered its price target to $13 from $16 per share. The removal of US steel tariffs on Canadian and Mexican steel producers and the high iron ore price could have an affect. Shares in BlueScope Steel Limited (ASX:BSL) closed 2.3 per cent lower at $11.10.

Company news

Vitamin company Blackmores (ASX:BKL) have reported a fall in NPAT from last financial year of 14 per cent from $51.6 million to $44.2 million. EBIT is down 12 per cent on last year from $74.5 million to $65.5 million for financial year 2019. Revenue is up 6 per cent to $460.1 million. They plan to continue to focus on reducing excess stock in channels to China and streamlining business. Shares in Blackmores (ASX:BKL) are up 0.7 per cent to $89.72.

IPO

Investec Australia Property Fund (ASX:IAP) has today announced its admission to the Official List of ASX today following its successful IPO last week . The industrial and retail real estate assets investment company raised close to $102 million following an oversubscription and a successful bookbuild. The fund has over one billion worth of properties in its portfolio. Issue price is $1.35, it opened at $1.40 and currently at $1.40.

Best and worst performers

The best-performing sector is Information Technology, adding 1.6 per cent, while the worst performing sector is Utlities, shedding 0.4 per cent.

The best performing stock in the S&P/ASX 200 is Nearmap (ASX:NEA), rising 7.3 per cent to $3.69, followed by shares in Speedcast International (ASX:SDA) and WorleyParsons (ASX:WOR).

The worst performing stock in the S&P/ASX 200 is Dominos Pizza Enterprises (ASX:DMP), dropping 5 per cent to $38.65, followed by shares in Fisher and Paykel Healthcare Corp (ASX:FPH) and QBE Insurance (ASX:QBE).

Asian markets

Asian markets are trading higher: Tokyo’s Nikkei up 0.3 per cent, Hong Kong’s Hang Seng is also up 0.3 per cent, and China’s Shanghai Composite has also risen 0.3 per cent.

Commodities and the dollar

Gold is trading at US$1,283 an ounce.
Iron ore price rose 3.1 per cent to US$$108.62
Iron ore futures are pointing to a rise of 1.9 per cent.
One Australian dollar is buying 69.24 US cents.