The big four banks weigh on the market: ASX tracking 2% lower at noon

Market Reports

by Rachael Jones

The Australian share market is now tracking 2 per cent lower at noon. Shares in Northern Star Resources (ASX:NST) and Silverlake Resources (ASX:SLR) are on the up today meanwhile shares in Unibail-Rodamco-Westfield (ASX:URW) have fallen.

The S&P/ASX 200 index is 121 points down at 6,027. On the futures market the SPI is 99 points lower.

Local economic news

The seasonally adjusted estimate for total dwellings approved fell 1.8 per cent in April according to new figures from the Australian Bureau of Statistics.

Broker moves

Credit Suisse rates Amcor (ASX:AMC) as a Downgrade to a Neutral from Outperform.They think the company is approaching fair value. The investment case remains the same and the revenue streams have proven largely defensive throughout the pandemic.The main risk is exchange rates, in the broker's opinion. Hence, the rating is downgraded to Neutral from Outperform. Target is lowered to $15.65 from $16.90. Shares in Amcor (ASX:AMC) are 3.7 per cent lower at $13.88.

Company news

Alliance Aviation Services (ASX:AQZ) is undertaking an equity capital raising comprising $91.9 million fully underwritten institutional placement and a non-underwritten share purchase plan to raise up to an additional $30 million. New shares will be issued at $2.95 a share, a 5 per cent discount to the last traded price. Shares in Alliance Aviation Services (ASX:AQZ) last traded at $3.10.

Best and worst performers

The best-performing sector is healthcare remaining steady, while the worst performing sector is Financials losing at 3.6 per cent.

The best performing stock in the S&P/ASX 200 is Northern Star Resources (ASX:NST) rising 6 per cent to $13.79, followed by shares in IPH (ASX:IPH) and Silverlake Resources (ASX:SLR).

The worst performing stock in the S&P/ASX 200 is Unibail-Rodamco-Westfield (ASX:URW) dropping 7.2 per cent to $5.13, followed by shares in Flight Centre Travel Group (ASX:FLT) and McMillan Shakespeare (ASX:MMS).

Asian markets

Lower: Japan’s Nikkei has lost 1.2 per cent. Hong Kong’s Hang Seng has lost 0.4 per cent and China’s Shanghai Composite has lost 0.1 per cent.

Commodities and the dollar

Gold is trading at US$1,732 an ounce.
Iron ore price is 0.6 per cent lower at US$103.93.
Iron ore futures are suggesting a rise of 0.5 per cent.
One Australian dollar is buying 69.78 US cents.