The Australian share market opened slightly higher this morning following positive leads from US markets on Friday. The market is showing promising green shoots of recovery after last week’s sell off and is tracking 0.3 per cent higher at noon. This comes as oil prices surged on Friday following fresh data which showed that the US employment rate had fallen to its lowest rate in almost 50 years at 3.5 per cent in September. This eased some of the recession fears which were stoked by negative US economic data last week.
The S&P/ASX 200 index is 20 points higher at 6,537. On the futures market the SPI is 29 points higher.
Morgan Stanley rated Jumbo Interactive (ASX:JIN) as overweight with a 12 month price target of $24. This comes as the broker updates proprietary estimates of lottery ticket volumes, noting 13 jackpots in 13 weeks. The company did not provide guidance for the 2020 financial year at its results and the broker envisages scope for an update on the outlook at the upcoming AGM. Shares in Jumbo Interactive (ASX:JIN) are trading 0.2 per cent higher at $26.96.
Local economic news
The AIG Australian Performance of Construction Index fell to 42.6 in September from 44.6 in the previous month. It was the thirteenth consecutive month of contraction. This was slightly better than the market’s expectation of 42.5.
Digital medication management platform, MedAdvisor (ASX:MDR), has raised $17 million at an issue price of 5 cents. US healthcare management provider HMS Holdings Corp (NASDAQ:HMSY) was a cornerstone investor in the placement, investing $11 million. Shares in MedAdvisor (ASX:MDR) are trading 20 per cent higher at 5 cents.
Best and worst performers
The best-performing sector is Info Tech, adding 1.4 per cent, while the worst performing sector, and the only one in the red is Utilities shedding 0.4 per cent.
The best performing stock in the S&P/ASX 200 is Washington H Soul Pattinson & Company (ASX:SOL), rising 5.2 per cent to $21.93, followed by shares in Wisetech Global (ASX:WTC) and St Barbara (ASX:SBM).
The worst performing stock in the S&P/ASX 200 is Speedcast International (ASX:SDA),dropping 5.1 per cent to $1.07, followed by shares in Mayne Pharma Group (ASX:MYX) and CYBG (ASX:CYB).
Commodities and the dollar
Gold is trading at US$1,509 an ounce.
One Australian dollar is buying 67.62 cents.