Sandfire Resources (ASX:SFR) shares drop despite pleasing results from Botswana project: ASX tracking 1.9% higher at noon

Market Reports

by Rachael Jones

The Australian share market continued a rise in mid morning trade and is now tracking almost 1.9 per cent higher at noon. Shares in Graincorp Group (ASX:GNC) slipped today as did Sandfire Resources (ASX:SFR) despite yesterday’s announcement of significant copper-silver mineralisation results from drilling at it’s project in Botswana. Shares in Southern Cross Media Group (ASX:SXL) saw a rise.

The S&P/ASX 200 index is 106 points up at 5,722. On the futures market the SPI is 91 points higher.

Broker moves

Citi rates City Chic Collective (ASX:CCX) as a Downgrade to a Neutral from a Buy. The impact of the pandemic on sales has been slight but is offset by the news that gross margins are lower. The stock has rallied substantially from the March lows and the business remains well-positioned but, at the prevailing share price, Citi assesses good sales and margin results from Avenue are necessary. Target price is $2.85. Shares in City Chic Collective (ASX:CCX) are currently 1.8 per cent higher at $2.87.

Company news

Qube Holdings (ASX:QUB) is pleased to announce the successful completion of the retail component raising approximately $236 million at $1.95 per share.Together with the institutional component of the Entitlement Offer, the total amount raised is approximately $500 million. The Entitlement Offer was strongly supported by retail shareholders, at approximately 83 per cent. Shares in Qube Holdings (ASX:QUB) are currently 1.9 per cent higher at $2.76.

Best and worst performers

The best-performing sector is Real Estate Investment Trust gaining 4.1 per cent, while the worst performing sector is Materials made the fewest gains at 0.7 per cent.

The best performing stock in the S&P/ASX 200 is Southern Cross Media Group (ASX:SXL) rising 14.1 per cent to $0.18, followed by shares in SmartGroup Corp (ASX:SIQ) and Unibail-Rodamco-Westfield (ASX:URW).

The worst performing stock in the S&P/ASX 200 is Graincorp Group (ASX:GNC) dropping 1.7 per cent to $4.13, followed by shares in Sandfire Resources (ASX:SFR) and Pinnacle Investment Management Group (ASX:PNI).

Asian markets

Higher: Japan’s Nikkei is 2 per cent higher. Hong Kong’s Hang Seng has added 1.6 per cent and China’s Shanghai Composite has added 0.6 per cent.

Commodities and the dollar

Gold is trading at US$1,732 an ounce.
Iron ore price is flat at $97.65.
Iron ore futures are suggesting a fall of 1 per cent.
One Australian dollar is buying 65.68US cents.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.