TPG (ASX:TPM) and Vodafone merger to go ahead: ASX tracking 0.2% higher at noon

Market Reports

by Rachael Jones

The Australian share market rose at the open and is now tracking 0.2 per cent higher at noon. Breville (ASX:BRG) shares shot up after reporting half-year net profit up by 14.1 per cent. Lynas Corporation (ASX:LYC) shares also rose after reports they have submitted their licence renewal documentation to the Malaysian Atomic Energy Licensing Board. The best-performing sector is Utilities, while the worst performing sector is Consumer Staples.

The S&P/ASX 200 index is 14 points up at 7,102. On the futures market the SPI is 20 points higher.

Broker moves

Citi has upgraded A2 milk (ASX:A2M) to a Buy from a Sell. Citi analysts now see upside to forecasts for H2 on the back of the coronavirus outbreak. They note their ebitda forecast for FY20 sits 17 per cent above market consensus presently.They believe there is evidence consumers have begun stockpiling essential items, including infant formula. Target price jumps 18 per cent to $17.45 on increased forecasts. Shares in A2 milk (ASX:A2M) are currently 1.8 per cent lower at $14.89.

Company news

Vodafone Hutchison Australia welcomes the Federal Court’s decision to allow the proposed merger with TPG Telecom (ASX:TPM) to proceed. It looks likely the merger should be completed in mid-2020. TPG has been placed in a trading halt. VHA, along with TPG, will work to complete the merger so that the benefits can flow to Australian consumers. VHA Chief Executive Officer Iñaki Berroeta said it was a great outcome for the Australian economy as it would allow for greater investment in next generation networks including 5G. Shares in TPG Telecom (ASX:TPM) are currently 15.7 per cent higher at $8.46.

Best and worst performers

The best-performing sector is Utilities adding 1.7 per cent, while the worst performing sector is Consumer Staples at 1.3per cent lower.

The best performing stock in the S&P/ASX 200 is Breville (ASX:BRG) rising 17.3 per cent to $23.43, followed by shares in TPG Telecom (ASX:TPM) and IDP Education (ASX:IEL)

The worst performing stock in the S&P/ASX 200 is Treasury Wine Estates (ASX:STWE), dropping 4.9 per cent to $11.28, followed by shares in Amcor (ASX:AMC) and AMP (ASX:AMP).

Commodities and the dollar

Gold is trading at US$1,571 an ounce.
Iron ore price is 0.9 per cent higher at US$87.68.
Iron ore futures are pointing to a rise of 0.9 per cent.
One Australian dollar is buying 67.19US cents.