New 11.5yr ASX high, while Caltex & Rio cap gains: Aus shares 0.2% higher at noon

Market Reports

by Jessica Amir

The Australian share market hit a new recent high (11.5 year high), buoyed by US stocks closing higher on the US Fed Reserve hinting that a rate cut could be close, with a cut forecast for 2020. While eight of Federal Open Market Committee (FOMC) members favour a rate cut this year.

Also staying overseas, lower rate optimism helped buoy the top three major indices, The S&P 500, Dow and Nasdaq to all gain over 6 per cent in June.

Back home the S&P/ASX 200 Index has gained 0.2 per cent/16 points, to 6,664 points at noon. It follows the rise of 1.2 per cent yesterday. On the futures market the SPI is 3 points lower. The market (S&P/ASX 200) is now about 165 points from the all-time high of 6,828.7 hit on 1 November 2007.

Capping gains today is the 18.1 per cent fall in Caltex (ASX:CTX) shares to $22.09. CTX shares have lost about five years of gains, after cutting its profit guidance by about $156 million and its earnings by about $173 million. (For the full story click on the company news section of our website).

Company news

Resolute Mining (ASX:RSG) is set to be dual listed, kicking off trading on the London Stock Exchange's (LSE) main market at 8:00am London time today, 20 June 2019. Resolute Mining, says the LSE listing will increase its profile in global investment markets and it’s perfectly timed as its ramps up its new Syama underground mine in Mali. Once commissioned, it will be the world’s first fully automated underground gold mine. Shares in Resolute Mining (ASX:RSG) are trading 6.9 per cent higher at $1.16 at noon.

Cannabinoid company, Botanix Pharmaceuticals (ASX:BOT) has announced its antimicrobial product BTX 1801 has killed superbugs without resistance. It’s another world first for the company, a world first study of its kind which found that its drug rapidly killed Gram-Positive Staphylococcus aureus (‘staph’) and methicillin resistant Staphylococcus aureus ('MRSA'). The studies were conducted in collaboration with Dr Mark Blaskovich at The University of Queensland, supported by an Australian Government grant. Shares in Botanix Pharmaceuticals (ASX:BOT) are trading 25 per cent higher at $0.18 at noon.

Best and worst performers

The best-performing sector is Utilities, adding 1.5 per cent, while the worst performing sector is Energy, shedding 0.9 per cent.

The best performing stock in the S&P/ASX 200 is Resolute Mining (ASX:RSG), rising 6.9 per cent to $1.16, followed by shares in CYBG (ASX:CYB) and Evolution Mining (ASX:EVN).

The worst performing stock in the S&P/ASX 200 is Caltex Australia (ASX:CTX), dropping 18.1 per cent to $22.09, followed by shares in Viva Energy Group (ASX:VEA) and Rio Tinto (ASX:RIO) (after Rio cut its iron ore guidance. For the full story on Rio (ASX:RIO) click on the company news section of our website).

Asian markets

Higher: Japan’s Nikkei has added 0.4 per cent, Hong Kong’s Hang Seng has gained 0.5 per cent and the Shanghai Composite has added 0.2 per cent.

Commodities and the dollar

Gold is trading at US$1,378 an ounce.
Iron ore price hit a new multiyear high, rising 1.6 per cent to US$114.08.
Iron ore futures are pointing to a rise of 2.5 per cent.
One Australian dollar is buying 68.93 US cents.

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