The information technology sector sees a boost: ASX tracking 0.1% lower

Market Reports

by Rachael Jones

The Australian share market shot up at the open but failed to gain momentum and is now tracking 0.1 per cent lower at noon. Following on from the US, tech stocks did well this morning with the Energy sector coming in lower. Shares in Perseus Mining (ASX:PRU) did well today after they released their sustainability report from 2019.

The S&P/ASX 200 index is 7 points down at 5,947. On the futures market the SPI is 19points lower.

Broker moves

Citi rates Qube Holdings (ASX:QUB) as a Downgrade to a Neutral from Buy. Citi notes the share price has risen 34 per cent since the equity raising and early May. While the near-term operating outlook remains uncertain the broker lowers the rating to Neutral from Buy/High Risk. Qube Holdings has announced Woolworths ((WOW)) as its next major tenant at Moorebank, further defining the path to realisation of the project. Target price is $3.15,. Shares in Qube Holdings (ASX:QUB) are currently 1 per cent lower at $2.88.

Company news

Dexus (ASX:DXS) has conditionally exchanged contracts to sell 45 Clarence Street, Sydney. The sale will realise net proceeds of $530 million, which is consistent with the property’s book value at 31 December 2019 and supports the strong investment demand for prime quality office assets in the Sydney CBD. It’s a 28-level, A-grade office tower across 32,000 square metres, located in the western corridor of Sydney’s financial district and was built in 1990. Shares in Dexus (ASX:DXS) are 1.85 per cent lower at $9.83.

Best and worst performers

The best-performing sector is infotech gaining 1.6 per cent, while the worst performing sector is Energy losing at 1.1 per cent.

The best performing stock in the S&P/ASX 200 is Perseus Mining (ASX:PRU) rising 7.7 per cent to $1.29, followed by shares in Orocobre (ASX:ORE) and Treasury Wine Estates (ASX:TWE).

The worst performing stock in the S&P/ASX 200 is Viva Energy (ASX:VEA) shedding 3.9 per cent to $1.84, followed by shares in McMillan (ASX:MMS) and Cromwell Property Group (ASX:CMW).

Asian markets

Higher: Japan’s Nikkei has gained 0.2 per cent. Hong Kong’s Hang Seng has added 0.2 per cent and China’s Shanghai Composite has added 0.3 per cent.

Commodities and the dollar

Gold is trading at US$1,769 an ounce.
Iron ore price is 1.1 per cent lower at US$100.62.
Iron ore futures are suggesting a rise of 1.3 per cent.
One Australian dollar is buying 69.53US cents.