Costa Group (ASX:CGC) shares plunged: Aus shares 0.6% lower at noon

Market Reports

by Ortenzia Borre

The Australian share market opened lower in early trade tracking 0.6 per cent down at noon. Shares in Costa Group (ASX:CGC) plunged 26.3 per cent when trading commenced as investors were finally able to respond to the company's discounted capital raising. Woolworths shares were trading down 0.3 per cent after the supermarket giant committed to a remediation charge of $200-$300M upon the revelation that it underpaid staff.

As for the sectors, Health care is leading the way and the Info Tech sector is trailing behind in the first two hours of trade.

The S&P/ASX 200 index is 40 points down at 6,705. On the futures market the SPI is eyeing a fall of 68 points.

Broker moves

Morgans rates Costa Group (ASX:CGC) as a Hold. The broker noted that despite the significant challenges that have been experienced by the company, Costa Group has undertaken a large equity raising to strengthen its balance sheet. The broker expects an earnings recovery in FY20 and says it will take time for the market to regain confidence in the growth outlook.

Shares in Costa Group (ASX:CGC) are 24.9 per cent lower at $2.60.

Company news

Transurban (ASX:TCL) has completed its M5 West acquisition.

The company reached financial close on the acquisition of the remaining 34.62 per cent minority interests in the M5 West after receiving the necessary consents from the Roads and Maritime Services and M5 West financiers.

The acquisition takes Transurban’s ownership interest in the asset to 100%.
are currently 0.8 per cent lower at $1.20.

Shares in Transurban (ASX:TCL) are trading at 0.3 per cent lower at noon at $14.66.


SomnoMed (ASX:SOM) announced today the signing of an exclusive partnership agreement between SomnoMed Limited and App-Nea LLC, a New York based company, whereby for the first time in the oral appliance industry, SomnoMed will deliver a software platform that will enable dentists and sleep physicians to work together and more closely collaborate on patient treatment within a trusted and effective portal.

Global CEO of SomnoMed, Mr Verdal-Austin says SomnoMed’s vision is to be treatment focused and technology driven and this is the first of the “technology driven” deliverables to secure the future of the business beyond just the product design, function and service.

Shares in SomnoMed (ASX:SOM) are 6.4 per cent higher at $2.68.

Best and worst performers

The best-performing sector is Health Care, adding 0.02 per cent, while the worst performing sector is Info Tech, shedding 1.4 per cent.

The best performing stock in the S&P/ASX 200 is Silver Lake Resources (ASX:SLR) rising 6.6 per cent to $1.14, followed by shares in Saracen Mineral Holdings (ASX:SAR) and Cleanaway Waste Management (ASX:CWY).

The worst performing stock in the S&P/ASX 200 is Costa Group Holdings, dropping 24.9 per cent to $2.60, followed by shares in Speedcast International and Bega Cheese.

Commodities

Gold is trading at US$1,489 an ounce.
Iron ore price dropped 1.5 per cent to US$86.64
Iron ore futures are eyeing a fall of 1.3 per cent.
One Australian dollar is buying 68.70 US cents.