The Australian share market opened higher this morning and is now tracking 0.5 per cent up at noon.
PolyNovo (ASX:PNV) is leading the gains at lunchtime after the company secured product sales in Germany, Austria and Switzerland and will see its first patient treated in Germany with its dermal scaffold Novosorb BTM for the regeneration of the dermis when lost through extensive surgery or burn. Meanwhile AP Eagers is the worst performer seeing their shares drop this morning following some analyst downgrades. At lunchtime the only sector in the red is Utilities.
The S&P/ASX 200 index is 33 points up at 7,099. On the futures market the SPI is 35 points up.
Citi has rated HUB24 (ASX:HUB) as a Buy. The broker found the company's quarterly update was in-line, continuing to point at ongoing upside risk from better than expected funds flows. The analysts consider the 26% growth in advisers using Hub24’s platform in 2Q as a positive forward indicator and also predict Hub24’s investment in the distribution team will support flows in 2H20, and beyond. The emergence of robo advice is also considered a positive. Revenue margins are projected to decline, but Citi at this stage is forecasting the company will manage to keep cash admin margins stable. Target $15.20. Shares in HUB24 (ASX:HUB) are trading 0.1 per cent lower at $11.27.
Capitol Health (ASX:CAJ) will acquire leading South Australian radiology centre, Fowler Simmons. The company entered into a binding agreement to acquire 90% of the musculoskeletal (MSK) imaging provider for an initial purchase price of $16M. The company says the deal is aligned to Capitol Health’s recently released strategic plan for long-term organic growth and expanding its network of high-quality community imaging centres. The transaction is expected to be completed in Q4 FY20 subject to satisfaction of customary conditions. Shares in Capitol Health (ASX:CAJ) are trading 2.2 per cent higher at 24 cents.
Best and worst performers
The best-performing sector is Consumer Staples, adding 1.6 per cent, while the worst performing sector is Utilities shedding 0.5 per cent.
The best performing stock in the S&P/ASX 200 is PolyNovo (ASX:PNV) rising 6.3 per cent to $2.71, followed by shares in Seven Group Holdings (ASX:SVW) and WiseTech Global (ASX:WTC).
The worst performing stock in the S&P/ASX 200 is AP Eagers (ASX:APE), dropping 5.4 per cent to $9.62, followed by shares in Flight Centre Travel Group (ASX:FLT) and St Barbara (ASX:SBM).
Commodities and the dollar
Gold is trading at US$1,557 an ounce.
Iron ore price is 0.1 per cent higher at US$96.80.
Iron ore futures are pointing to a fall of 0.4 per cent.
One Australian dollar is buying 68.36 US cents.