Household lending fell in May: ASX tracking 0.2% at noon

Market Reports

by Rachael Jones

The Australian share market is eyeing its second day of gains, with most sectors on the ASX in profit territory. It's now tracking 0.2 per cent higher at noon. Information Technology sector leading the charge again. Shares in Clinuvel (ASX:CUV) are on the up after releasing information about the progress of their US Food and Drug Administration status for Scenesse.

The S&P/ASX 200 index is 12 points up at 6,702. On the futures market the SPI is 17 points higher

Local economic news

The value of new lending commitments to households fell 1.3 per cent in May 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) figures on new lending to households and businesses.

The fall in new lending to households in May follows a 0.6 per cent rise in April 2019.

Broker moves

WiseTech Global (ASX:WTC) had its ‘buy’ rating reiterated by Citi Research, with the international bank upping its price target for the tech major to $32.77, up from $21.31. Citi says there is increased conviction for WiseTech and its customers are increasingly validating its business, saying WTC offers fasters processing speeds and lower errors in its logistics software. Shares in WiseTech Global (ASX:WTC) are 2.8 per cent higher at $30.24.

Company news

Retail Food Group (ASX:RFG) released a statement to the ASX today answering questions in response to Aware query. It's about an indicative non-binding proposal from Soliton Capital Partners. They say they had previously announced to the market its progress regarding options for the reduction of its debt, including equity and other debt funding options, as well as potential asset sales. They say given the indicative and non-binding nature of the proposal received from Soliton Capital Partners, in their view, there is no new material information contained in the Information. Shares in Retail Food Group (ASX:RFG) are 6.8 per cent lower at $0.28.

Best and worst performers

The best-performing sector is Information Technology, adding 1.1 per cent, while the worst performing sector is Financials, shedding 0.3 per cent.

The best performing stock in the S&P/ASX 200 is Resolute Mining rising 7.8 per cent to $1.49, followed by shares in Cooper Energy (ASX:COE) and Whitehaven Coal (ASX:WHC)

The worst performing stock in the S&P/ASX 200 is SIMS Metal Management (ASX:SGM), dropping 3.4 per cent to $10.27, followed by shares in Emeco Holdings (ASX:EHL) and Vocus Group (ASX:VOC).

Asian markets

Japan’s Nikkei has added 0.1 per cent, Hong Kong’s Hang Seng has gained 0.9 per cent and the Shanghai Composite has added 0.4 per cent.

Commodities and the dollar

Gold is trading at US$1,421 an ounce.
Iron ore price fell 0.5 per cent to US$120.97
Iron ore futures are pointing to a fall of 0.2 per cent.
One Australian dollar is buying 69.60 US cents.