Servcorp (ASX:SRV) to close 12 US locations: Aus shares 1.2% lower at noon

Market Reports

by Ortenzia Borre

The Australian share market opened lower for the week's first day of trade and is now trading 1.2 per cent lower at noon. Fisher & Paykel Healthcare Corporation (ASX:FPH) is leading the top 200 gains at midday, up over 5 per cent, with Jumbo Interactive (ASX:JIN) coming in last, dropping almost 11 per cent. The S&P/ASX 200 index is 68 points lower at 5,836. On the futures market the SPI is 40 points down. 

Broker moves 

Morgans has rated Bapcor (ASX:BAP) as an Add. The broker states Bapcor's performance has improved significantly as restrictions have eased in Australasia.
It's believed while consumer sentiment may be distorted, given the extent of government stimulus in Australia, the broker expects the automotive aftermarket will prove resilient. Bapcor has not been eligible to apply for the JobKeeper payment and this removes an uncertainty in FY20. Shares in Bapcor (ASX:BAP) are trading 0.7 per cent lower at $5.89. 

Company news 

Servcorp (ASX:SRV) will close of 12 offices in the United States of America (USA) due to restructuring. The company will close locations in Atlanta, Dallas, Los Angeles and San Francisco. The company says they estimate the one-off, cash cost of the reorganisation to be $5.5 million (US$3.8 million) and the reorganisation will result in the deconsolidation of the associated legal entities. Full details of the reorganisation will be included in the Servcorp Consolidated Financial Report. Shares in Servcorp (ASX:SRV) are trading 2.8 per cent lower at $2.11.

Best and worst performers 

The best-performing sector is Health Care, adding 0.3 per cent, while the worst performing sector is Energy shedding 2.6 per cent. 

The best performing stock in the S&P/ASX 200 is Fisher & Paykel Healthcare Corporation (ASX:FPH), rising 5.4 per cent to $31.22, followed by shares in Polynovo (ASX:PNV) and Perseus Mining (ASX:PRU)

The worst performing stock in the S&P/ASX 200 is Jumbo Interactive (ASX:JIN), dropping 10.7 per cent to $10.19, followed by shares in Flight Centre Travel Group (ASX:FLT) and Virgin Money UK (ASX:VUK)

Asian markets

Japan's Nikkei is 1.3 per cent lower, Hong Kong's Hang Seng is 0.4 lower and the Shanghai Composite is also 0.4 lower.

Commodities and the dollar 

Gold is trading at US$1,770 an ounce. 
Iron ore price is steady at US$103.34 
Iron ore futures are pointing to a fall of 1.8 per cent. 
One Australian dollar is buying 68.72 US cents. 


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