Afterpay (ASX:APT) shares on the rise as they weather the storm: ASX tracking 0.5% lower

Market Reports

by Rachael Jones

The Australian share market shot up at the open but took a downward turn in late morning trade and is now tracking 0.5 per cent lower at noon. Shares in Afterpay Touch (ASX:APT) are rising today after a bit of a rollercoaster. Co-Founder and CEO Anthony Eisen insists the company has enough cash to weather the storm, while business activities are yet to be impacted by COVDID-19. Meanwhile shares in oOh! Media (ASX:OML) continue to fall after they successfully completed the institutional placement and institutional component of the entitlement offer announced yesterday. Information technology tops the sectors for a second day and real estate investment trust comes in last.

The S&P/ASX 200 index is 24 points down at 5,089. On the futures market the SPI is 42 points lower.
Broker moves

UBS has upgraded Dominos Pizza Enterprises (ASX:DMP) to a Neutral from a Sell. They note that the balance sheet is solid and the company will benefit in the longer term from an accelerating shift to deliveries. The broker believes earnings risk from the coronavirus crisis is manageable and transitory. Target price is reduced to $51.00 from $52.50. Shares in Dominos Pizza Enterprises (ASX:DMP) are 6.3 per cent higher at $53.38.

Company news

The Decmil Group (ASX:DCG) has today released its financial results for the period ending 31 December 2019. This was delayed due to Decmil’s desire to fully understand the impact of the termination of a contract with the New Zealand Department of Corrections. The Company reported a bottom-line loss of $75 million which includes a full provisioning for loss for the amounts owed under the NZ contract of $49 million. Beyond Decmil’s disputed contracts, Decmil had a strong first half operationally and secured $207 million in new contracts, primarily from government customers. Some 58% of Decmil’s work in hand is with state government departments and agencies. Shares in The Decmil Group (ASX:DCG) last traded at $0.41.

Best and worst performers

The best-performing sector is Information Technology adding 3.2 per cent, while the worst performing sector is REITs losing 4.1 per cent.

The best performing stock in the S&P/ASX 200 is the Afterpay Touch Group (ASX:APT) rising 10.9 per cent to $21.52, followed by shares in Nearmap (ASX:NEA) and the Star Entertainment Group (ASX:RWC).

The worst performing stock in the S&P/ASX 200 is G8 Education (ASX:GEM) dropping 13.2 per cent to $0.63, followed by shares in oOh!Media (ASX:OML) and Scentre Group (ASX:SCG).

Commodities and the dollar

Gold is trading at US$1,625 an ounce.
Iron ore price is 0.7 per cent down at US$86.77.
Iron ore futures are suggesting a rise of 0.5%.
One Australian dollar is buying 60.74US cents.