Approvals for apartments plunge in May: ASX tracking 0.8% higher at noon

Market Reports

by Rachael Jones

The Australian share market is now tracking 0.8 per cent higher at noon. Shares in Jumbo Interactive (ASX:JIN) are rising after their extension with TabCorp earlier this week. Meanwhile shares in WiseTech Global continue to fall as founder Richard White sells off $46 million worth of shares. As for the sectors today Real Estate Investment Trust leads the pack with Utilities performing the worst.

The S&P/ASX 200 index

The S&P/ASX 200 index is 49 points up at 5,947. On the futures market the SPI is 27 points higher.

Local economic news

The number of dwellings approved fell 16.4 per cent in May, in seasonally adjusted terms, according to data released by the Australian Bureau of Statistics (ABS) today.

Broker moves

Citi rates Whitehaven Coal (ASX:WHC) as Upgrade to a Buy from a Neutral. Citi is of the view that thermal coal prices are now so low for so long that a producer response will follow. Productions cuts are on the cards, predict the analysts.Citi analysts are anticipating a repeat of 2015 when aggressive reductions followed, with the price for thermal coal subsequently rising. Target price is $1.75. Shares in Whitehaven Coal (ASX:WHC) are currently 0.9 per cent higher at $1.44.

Company news

Online furniture retailer Temple & Webster (ASX:TPW) is to raise $40 million via a share placement to institutional investors at $5.70 a share. Proceeds will be used to fund growth, including improvements to the digital product platform.June 2020 has maintained the strong sales momentum, with gross sales (to the 28th) growing 130 per cent versus the prior corresponding period. Full year FY20 EBITDA will be greater than $8 million. Shares in Temple & Webster (ASX:TPW) last traded at $6.31.

Best and worst performers

The best-performing sector is Real Estate Investment Trust gaining 2.6 per cent, while the worst performing sector is Utilities losing at 0.3 per cent.

The best performing stock in the S&P/ASX 200 is Jumbo Interactive (ASX:JIN) rising 12.3 per cent to $10.76, followed by shares in Next DC (ASX:NXT) and Resolute Mining (ASX:RSG).

The worst performing stock in the S&P/ASX 200 is TUAS (ASX:TUA) dropping 8.9 per cent to $0.61, followed by shares in Wisetech Global (ASX:WTC) and Fisher and Paykel Healthcare Corp (ASX:FPH).

Commodities and the dollar

Gold is trading at US$1,782 an ounce.
Iron ore price is 0.4 per cent lower at US$99.43.
Iron ore futures are suggesting a rise of 0.5 per cent.
One Australian dollar is buying 69.12US cents.