Speedcast (ASX:SDA) aids the Information Technology sector: ASX set to close 0.1% higher

Market Reports

by Rachael Jones

It has been a mostly positive day of trade for the Australian share market after a small dip around lunchtime the the local bourse managed to close 0.1 per cent higher. Coles Group (ASX:COL) rose after reporting strong sales growth across its stores as did SpeedCast International (ASX:SDA). Bravura Solutions (ASX:BVS) shares are also on the up after they announced they are to acquire FinoComp for $25 million. Bega Cheese (ASX:BGA) shares fell after reporting weaker earnings due. Out of the gold miners, Resolute Mining (ASX:RSG) was the weakest.
As for the sectors today Infotech led the day and Utilities fell lower.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 5 points higher to finish at 6,745.

Futures market

Dow futures are suggesting a flat start.
S&P 500 futures are eyeing a rise of 1.5 points.
The Nasdaq futures are eyeing a lift of 14 points.
And the ASX200 futures are eyeing a 2 point rise tomorrow morning.

Company news

New Zealand’s Supreme Court has today announced it will hear the case surrounding Synlait’s (ASX:SM1) Pokeno land. The land had historic covenants reinstated by the Court of Appeal in May. Synlait will be substituted as the appellant in the case and will stand in the shoes of Stonehill Trustee, the previous owner of the land, as it now owns the land. In February 2018, Synlait announced the conditional purchase of 28 hectares of land in Pokeno, a small town in the Waikato District, to establish its second nutritional powder manufacturing site. Shares in Synlait (ASX:SM1) closed 1.1. per cent lower at $8.76.

Supermarket giant Coles Group (ASX:COL) has recorded a 1.8 per cent increase in total group sales to $8.7 billion in the first quarter of the 2020 financial year. Coles Online sales revenue grew by 23.5 per cent, Click & Collect remains the fastest growing channel for online and Own Brand sales revenue grew by 4.7 per cent.

Agribusiness Elders (ASX:ELD) is thrilled the Federal Court of Australia has today made orders approving the scheme of arrangement for the proposed acquisition of Australian Independent Rural Retailers.

Bega Cheese (ASX:BGA) shares have taken a dip today after an update showing a tightening in market conditions. They report in addition to the competitive milk supply environment, the last quarter has seen a slowdown in growth in key categories.

Best and worst performers 

The best performing sector was Infotech adding 1 per cent while the worst performing sector was Utilities, shedding 0.5 per cent.

The best performing stock in the S&P/ASX 200 was Speedcast International (ASX:SDA), rising 11.2 per cent to close at $1.09. Shares in SIMS Metal Management (ASX:SGM) and Ooh!Media (ASX:OML) followed higher.

The worst performing stock in the S&P/ASX 200 was Bega Cheese (ASX:BGA), dropping 12.8 per cent to close at $3.95. Shares in Resolute Mining (ASX:RSG) and GWA Group (ASX:GWA) followed lower.

Asian markets

Mixed: Japan’s Nikkei has added 0.4 per cent, Hong Kong’s Hang Seng has lost 0.4 per cent and the Shanghai Composite has lost 0.4 per cent.

Commodities and the dollar

Gold is trading at US$1,492 an ounce.
Iron ore price is flat at US$87.98.
Iron ore futures are pointing to a fall of 1.1 per cent.
Light crude is US$0.07 down at US$55.74 a barrel.
One Australian dollar is buying 68.55 US cents.