The Australian share market snapped its two-day losing streak and rose higher today, recouping yesterday’s losses and is attempting to rub out Monday’s 1.2 per cent drop as well.
Most of the sectors are rallying today, with the IT sector leading the pack and erasing its loses from yesterday.
However, global markets ended mostly weaker on Tuesday with US-China trade tensions weighing on the outlook of corporate earnings, while hopes are fading of a US interest rate cut.
The S&P/ASX 200 index is 0.7 per cent or 46 points up at 6,711. On the futures market the SPI is 58 points higher.
Local economic news
Australian construction work completed in the March 2019 quarter fell 2.2 per cent, while year-on-year it stumbled 6.5 per cent, according the latest figures from the ABS.
Meantime, the ABS also released data on building activity which was not as stark. Year-on-year building activity fell 1 per cent in the March 2019 quarter, and 0.9 per cent in the quarter (in trend terms), with new residential building falling the most, 2.3 per cent in the quarter.
Bell Potter has reiterated breast cancer imaging company, Volpara Health Technology’s (ASX:VHT) speculative buy position, with a price target of $2.27. It comes after Vopara entered into a distribution agreement with ScreenPoint Medical BV to sell its next generation breast cancer detection software, its Transpara product. Bell Potter noted Volpara as a very high quality tech company with large technical barriers to entry. It’s also a global leader in preventing and detecting breast cancer. Shares in Coronado (ASX: VHT) are trading 0.9 per cent higher at $1.63.
FSA Group (ASX:FSA) which offers home loans to those wishing to consolidate their debt, has advised its home loan pool hit $382 million at the end of June 2019. Westpac Banking Corporation (ASX:WBC) has renewed its $375 million home loan facility (non-recourse) until 15 October 2021. The senior facility is backed (supported) by an institutional fund manager. Shares in FSA Group (ASX:FSA) are trading 0.96 per cent higher at $1.05 at noon. Over the last month its shares have lost 2.7 per cent, while year-to-date its shares have gained 1.5 per cent.
Dacian Gold (ASX:DCN) has advised the market its cash and bullion at June 30 is expected to be approximately $45 million. It’s also received a strong response from its strategic review process, which is underway. And Dacian also advised there is a strong probability of increasing mine life at its Mt Morgans Gold Operation in WA to eight years, using resource conversion and existing discoveries. Shares in Dacian Gold (ASX:DCN) are trading 22.4 per cent higher at $0.64 at noon. Over the last month its shares have gained over 24 per cent, while year-to-date its shares have lost 75 per cent.
Best and worst performers
The best-performing sector is S&P/ASX Info Tech, adding 2.3 per cent, while the worst performing sector is S&P/ASX Materials, shedding 0.2 per cent.
The best performing stock in the S&P/ASX 200 is The A2 Milk Company Limited (ASX:A2M), rising 5.4 per cent to $15.28, followed by shares in Wisetech Global Limited (ASX:WTC) and Bravura Solutions Limited (ASX:BVS).
The worst performing stock in the S&P/ASX 200 is Pilbara Minerals Limited (ASX:PLS),dropping 1.9 per cent to $0.51, followed by shares in Galaxy Resources Limited (ASX:GXY) and Eclipx Group (ASX:ECX).
Japan’s Nikkei has lost 0.03 per cent, Hong Kong’s Hang Seng has gained 0.3 per cent and the Shanghai Composite has lost 0.1 per cent.
Commodities and the dollar
Gold is trading at US$1,393 an ounce.
Iron ore price rose 2.7 per cent to US$121.57
Iron Ore futures suggest a fall of 0.1 per cent.
One Australian dollar is buying 69.21 US cents.