Shares in Afterpay (ASX:APT) take a dip after broker call: ASX 0.9% higher at noon

Market Reports

by Rachael Jones

The Australian share market rose at the open and managed to maintain momentum after positive leads from Wall Street and is now tracking 0.9 per cent higher at noon. Afterpay touch group (ASX:APT) took a dip today - this appears to be attributable to a broker call. Yesterday we reported Morgan Stanley classed Afterpay with a buy rating and $44.00 price target. Today, analysts at UBS have initiated coverage on the company rating it as a sell. They say regulatory and execution risks are also significant and the have concerns over the US market. Meanwhile shares CYBG (ASX:CYB) rose 7 per cent. The best-performing sector is Consumer Staples, while the worst performing sector is Infotech.

The S&P/ASX 200 index is 57 points up at 6,709. On the futures market the SPI is 56 points higher.

Local economic news

The Leading Index growth rate has deteriorated over the last six months from –0.56% in April to –0.92 per cent in September. The main components driving the 0.36 percentage point shift have been a further weakening in dwelling approvals (–0.25 percentage points); a deterioration in consumer sentiment (–0.21ppts); a sell-off in commodity prices (–0.20 percentage points); and slower growth in monthly hours worked (–0.11 percentage points).

Company news

OZ Minerals (ASX:OZL) released their third quarter report this morning showing they are on track to achieve full year production guidance at their Prominent Hill mine despite lower underground ore movement. This has been reduced to 3.3-3.5 million tonnes for 2019.The Carrapateena construction is almost complete with first saleable concentrate on schedule for November. Shares in OZ Minerals (ASX:OZL) are trading 1.2 per cent higher at $9.68.

IPO

Provider of workplace management solutions Damstra Holdings (ASX:DTC) started trading today. It issued shares at $0.90 and started trading on the ASX at $1.13 and is currently trading at $1.18.

Best and worst performers

The best-performing sector is Consumer Staples, adding 1.8 per cent, while the worst performing sector is Infotech, shedding 0.02 per cent.

The best performing stock in the S&P/ASX 200 is CYBG (ASX:CYB), rising 7 per cent to $2.52, followed by shares in Challenger (ASX:CGF) and Pinnacle Investment Management (ASX:PNI).

The worst performing stock in the S&P/ASX 200 is Afterpay Touch(ASX:APT),dropping 6.5 per cent to $34.19, followed by shares in Southern Cross Media Group (ASX:SXL) and Evolution Mining (ASX:EVN).

Commodities and the dollar

Gold is trading at US$1,485 an ounce.
Iron ore price rose 1.7 per cent to US$93
Iron ore futures are pointing to a rise of 0.2 per cent.
One Australian dollar is buying 67.34 US cents.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.