Wage price index rises in the December quarter: ASX flat at noon

Market Reports

by Rachael Jones

The Australian share market dipped at the open and despite a slight rise around mid-morning trade, is now tracking fairly flat at 0.1 per cent lower at noon. Domino’s (ASX:DMP) shares shot up today on the release of their half year results. Wisetech Global (ASX:WTC) shares are down over 12 per cent after downgrading its guidance -they say they anticipate that the manufacturing slowdown from the coronavirus in China will delay execution of logistics activities by logistics service providers. The best-performing sector is Healthcare, adding 1.6 per cent, while the worst performing sector is Information Technology.

The S&P/ASX 200 index is 5 points down at 7,091. On the futures market the SPI is 10 points higher.

Broker moves

Citi has downgraded Ansell (ASX:ANN) to a Neutral from a Buy while lifting the price target to $32 from $31.50. Weighing up multiple risks, the analysts believe the stock is fairly valued at present. The Healthcare division should continue to do well as some competitors remain challenged. Shares in Ansell (ASX:ANN) are currently tracking 1.8 per cent higher at $31.99.

Local economic news

The seasonally adjusted Wage Price Index (WPI) rose 0.5 per cent in the December quarter 2019 and 2.2 per cent through the year, according to figures released today by the Australian Bureau of Statistics (ABS).

Company news

Domino's Pizza (ASX:DMP) see global food sales increase by $151.3 million to $1.58 billion, that’s up 10.6 per cent on the prior year. They are now on track to pass $3 billion in global food sales this financial year. Online and delivery sales continue to be the largest contributors to growth in all markets. They will pay a fully franked interim dividend of 66.7 cents per share is up from the previous interim payout of 62.7 cents, 75 per cent franked. Shares in Domino's Pizza (ASX:DMP) are 11.8 per cent higher $64.22.

Best and worst performers

The best-performing sector is Healthcare, adding 1.7 per cent, while the worst performing sector is Infotech at 3.3 per cent lower.

The best performing stock in the S&P/ASX 200 is Cleanaway Waste Management (ASX:CWY) rising 13.5 per cent to $2.18, followed by shares in Domino’s Pizza Enterprises (ASX:DMP) and Netwealth Group (ASX:NWL).

The worst performing stock in the S&P/ASX 200 is Wisetech (ASX:BRG), dropping 21.4 per cent to $23.15, followed by shares in EML Payments (ASX:EML) and Nearmap (ASX:NEA).

Commodities and the dollar

Gold is trading at US$1,604 an ounce.
Iron ore price is 0.3 per cent lower at US$90.16
Iron ore futures are pointing to a rise of 0.1 per cent.
One Australian dollar is buying 66.85US cents.

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