Household borrowing strongest growth in five years: Aus shares flat at noon

Market Reports

by Jessica Amir

The Aussie share market kicked off the trading week in positive territory, after rising for the two last sessions (Thursday and Friday).

We saw several stocks hit all-time highs on Friday, including Afterpay (ASX:APT), Jumbo Interactive (ASX:JIN), Qube (ASX:QUB), Aventus (ASX:AVN).

Last week we saw the local bourse take its winning streak to three weeks. At the moment, there are no real stand out sectors with two sectors, Info Tech and Utilities up the most, about 0.5 per cent and Materials down the most, 0.7 per cent.

The S&P/ASX 200 index is 0.05 per cent or 3 points higher at 6,647 a little while ago. On the futures market the SPI is 7 points or 0.1 per cent higher.

Local economic news

New lending to households rose 3.9 per cent in July 2019 (seasonally adjusted), the strongest growth since October 2014, according to the latest from Australian Bureau of Statistics (ABS). This follows the 1.9 per cent rise in June 2019. For the second month in a row there were particularly strong increases in the level of new lending commitments for owner occupier and investment dwellings. Despite this recent turn-around, both headline figures are low compared to their respective peaks in 2017.

Company news

Gold producer and exploration company, Gold Road Resources (ASX:GOR) reported positive exploration results from its Yamarna projects in WA. Its diamond and reverse circulation (RC) results were from its two recent exploration programmes. One of which Yaffler South, is fully owned by the company, the other at Gruyere is a 50:50 JV. Shares in Gold Road Resources (ASX:GOR) are trading 0.9 per cent higher at $1.37 at noon. YTD its shares have gained 107 per cent.

Financial services provider, GBST (ASX:GBT) which is in the midst of a binding takeover offer for $3.85 per share by FNZ, has sent out its Annual Report to shareholders. It also released its corporate governance statement, highlighting its targeting female pay equality. It also reiterated its 7 per cent rise in revenue and 103 per cent rise in attributable profit after tax for the financial year to 30 June 2019, compared to the same time last year. GBST shares are trading 0.5 per cent lower at $3.82 at noon. YTD its shares have gained 146 per cent.

Best and worst performers

The best-performing sector is S&P/ASX Info Tech, adding 0.5 per cent, while the worst performing sector is S&P/ASX Materials, shedding 0.7 per cent.

The best performing stock in the S&P/ASX 200 is Pilbara Minerals Limited (ASX:PLS), rising 6.1 per cent to $0.35, followed by shares in CIMIC Group Limited (ASX:CIM) and TPG Telecom Limited (ASX:TPM).

The worst performing stock in the S&P/ASX 200 is Regis Resources Limited (ASX:RRL), dropping 5.7 per cent to $4.77, followed by shares in Saracen Mineral Holdings Limited (ASX:SAR) and Resolute Mining Limited (ASX:RSG).

Asian markets

Japan’s Nikkei has added 0.6 per cent, Hong Kong’s Hang Seng has gained 0.2 per cent and the Shanghai Composite has added 0.4 per cent.

Commodities and the dollar

Gold is trading at US$1,511 an ounce.
Iron ore price fell 1.3 per cent to US$89.05
Iron ore futures are pointing to a fall of 1.7 per cent.
One Australian dollar is buying 68.46 US cents.

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