Financials the worst performing sector: ASX flat at noon

Market Reports

by Rachael Jones

The Australian share market rose at the open then took a slight dip before lunch. The market is now flat at noon. Virgin Money UK (ASX:VUK) shares are falling on the back of the UK general election result where the Conservative party won a parliamentary majority. The best-performing sector is Information Technology, while the worst performing sector is Financials.

The S&P/ASX 200 index is flat at 6,849. On the futures market the SPI is 4 points lower.

Broker moves

Credit Suisse has downgraded SmartGroup (ASX:SIQ) to a Neutral from an outperform with a 12-month price target of $8.25 reduced from $10.10. The company's insurance underwriting partner intends to change product terms sold by authorised representatives. Credit Suisse understands this relates to add-on insurance and will affect the price point and service fees SmartGroup receives. Shares in the SmartGroup (ASX:SIQ) are currently trading at 5.3 per cent lower at $7.18.

Company news

Warrego Energy (ASX:WGO) has agreed to acquire a minimum 50.1 per cent indirect interest in El Romeral, an integrated gas production and power station operation located in southern Spain. El Romeral comprises three production licences, a 100 per cent-owned 8.1 MW power station supplied by three producing wells, 13 prospects and development opportunities with the potential to significantly increase gas production, electricity generation and revenue. Shares in Warrego Energy (ASX:WGO) last traded at $0.20.

IPO

Founders First (ASX:FFL) started trading today. The craft beverage accelerator issue price was $0.50, it started trading at $0.51 And is currently at $0.49.

Best and worst performers

The best-performing sector is Infotech adding 0.5 per cent, while the worst performing sector is Financials, shedding 0.4 per cent.

The best performing stock in the S&P/ASX 200 is Pro Medicus (ASX:PME) rising 6.3 per cent to $23.78, followed by shares in Pinnacle Investment Management Group (ASX:APT) and Service Stream (ASX:SSM).

The worst performing stock in the S&P/ASX 200 is Vigin Money UK (ASX:VUK), dropping 6.1 per cent to $3.85, followed by shares in Speedcast International (ASX:SDA) and SmartGroup Corporation (ASX:SIQ)

Commodities and the dollar

Gold is trading at US$1,476 an ounce.
Iron ore price lost 0.6 per cent to US$94.04.
Iron ore futures are pointing to a fall of 1.1 per cent.
One Australian dollar is buying 68.72 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.