Orora shares soar on the back of sale: ASX tracking at 0.2% lower at noon

Market Reports

by Rachael Jones

The Australian share market dropped at the open only to rise in the first hour of trade and is now tracking per cent 0.2 per cent lower at noon. Shares in Orora (ASX:ORA) shot up today after it released the news that it is selling its Australasian Fibre Business to a wholly owned subsidiary of Nippon Paper Industries Co. for an enterprise value of $1.7 billion. Netwealth (ASX:NWL) also did well today after they released their results for the quarter showing its Funds Under Administration (FUA) grew $2 billion to $25.3 billion. Clinuvel Pharmaceuticals are moving downwards. The Industrials sector is leading the way and the Energy sector trailing behind in the first two hours of trade.

The S&P/ASX 200 index is 13 points down at 6,534. On the futures market the SPI is 0.1 per cent /lower.

Local economic news

The value of new lending commitments to households rose 3.2 per cent in August 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) figures. The rise in new lending commitments to households in August follows a 4.3 per cent rise in July and a 1.8 per cent rise in June 2019.

Company news

SeaLink Travel Group (ASX:SLK) reports that Transit Systems Group has been successfully awarded binding contract to continue to operation the Clarmont and Marmion in WA bus services for the next ten years.Transit Systems Group has been in negotiations with the Western Australian Government and associated transport authorities as preferred tenderer for those contract areas. They have also been awarded a binding contract to operate a new contract for Joondalup in Perth bus services for 10 years. Shares in SeaLink Travel Group (ASX:SLK) are currently trading 1.5 per cent higher at $4.72.

Best and worst performers

The best-performing sector is Industrials, adding 0.1 per cent, while the worst performing sector is Energy, shedding 0.7 per cent.

The best performing stock in the S&P/ASX 200 is Orora (ASX:ORA), rising 17.2 per cent to $3.20, followed by shares in Polynovo (ASX:PNV) and Netwealth Group (ASX:NWL).

The worst performing stock in the S&P/ASX 200 is Clinuvel Pharmaceuticals (ASX:CUV), dropping 11.1 per cent to $40, followed by shares in Resolute Mining (ASX:RSG) and Harvey Norman (ASX:HVN).

Commodities and the dollar

Gold is trading at US$1,510 an ounce.
Iron ore price fell 3.9 per cent to US$91.06
Iron ore futures are pointing to a fall of 1.3 per cent.
One Australian dollar is buying 67.17 US cents.