The Australian share market saw a short-lived spike at the open but has floated lower over the morning trade and is now tracking 0.4 per cent lower after the first two hours of trade. Most of the sectors have dropped this morning despite a number of major companies achieving better than expected earnings results.
The S&P/ASX 200 index is 25 points lower at 7,106. On the futures market the SPI is 29 points lower.
Credit Suisse has upgraded Beach Energy (ASX:BPT)
from a neutral to an outperform, with a 12 month price target of $2.49. The broker believes the market may be either doubting or fearing the company’s 2020 financial year capital expenditure guidance, after the stock slumped 11 per cent compared to its competitors. Credit Suisse also suspects that the company was getting the negative news out of the way and may be poised to deliver an upgrade to the long-term production outlook in August. Shares in Beach Energy (ASX:BPT)
are tracking 1.4 per cent higher at $2.14 at noon.Company news
Building product manufacturer and distributor, Big River Industries (ASX:BRI)
has agreed to purchase the trading business and assets of Pine Design Truss and Timber for $3.3 million cash at completion, plus up to $0.4 million in additional earn out payments over a two-year period if profitability targets are met. The acquisition target is located in Adelaide, South Australia. Subject to the fulfillment of all conditions, the transaction is expected to complete in early March 2020. Big River Industries says “[t]he acquisition of Pine Design will not only provide Big River a market position in prefabricated products in South Australia, but also adds considerably to the building products distribution network in the region, with the business having generated sales revenue of $15m per annum”. Shares in Big River Industries (ASX:BRI)
are last traded at $1.61.Best and worst performers
The best-performing sector is Real Estate Investment Trusts, adding 0.5 per cent, while the worst performing sector is Communications, shedding 1.1 per cent.
The best performing stock in the S&P/ASX 200 is National Storage (ASX:NSR)
, rising 5.97 per cent to $2.40, followed by shares in Regis Resources (ASX:RRL)
and Brambles (ASX:BXB)
The worst performing stock in the S&P/ASX 200 is Jumbo Interactive (ASX:JIN)
,dropping 4.9 per cent to $12.39, followed by shares in Pro Medicus (ASX:PME)
and Qube Holdings (ASX:QUB)
.Commodities and the dollar
Gold is trading at US$1,583 an ounce.
Iron ore price rose 0.1 per cent to US$88.67.
Iron ore futures are pointing to a fall of 0.1 per cent.
One Australian dollar is buying 67.17 US cents.