The Australian share market is off to a rocky start today. It opened lower following renewed fears of a second wave of covid-19 in the US and is now tracking 0.1 per cent lower at noon.
The S&P/ASX 200 index is 6 points down at 5,950. On the futures market the SPI is 5 points lower.
Macquarie rates Rio Tinto (ASX:RIO) as an outperform with a 12 month price target of $112. The company is set to wind down its New Zealand aluminium smelter with closure slated for the September quarter of next year. The broker says the smelter is loss making and has a negative value. Macquarie has incorporated a closure cost of US$150 million. Meanwhile, buoyant iron ore prices provide scope for earnings upside. Shares in Rio Tinto (ASX:RIO) are trading 1.03 per cent lower at $97.65.
Buy now, pay later provider Sezzle (ASX:SZL) is to raise $86.3 million. The company aims to raise $79.1 million via a fully underwritten institutional placement, and $7.2 million via a non-underwritten security purchase plan. Sezzle’s share price surged over 40 per cent yesterday before the company was forced in to a trading halt. The raising will be at a floor price of $5 per share, which is a 28.1 per cent discount to the last traded price. Sezzle says the funds will be used to accelerate its growth strategy, particularly in the Canadian market. Shares in Sezzle (ASX:SZL) last traded at $6.95.
Best and worst performers
The best-performing sector is Info Tech, adding 1.7 per cent, while the worst performing sector is Energy, shedding 1.7 per cent.
The best performing stock in the S&P/ASX 200 is Silver Lake Resources (ASX:SLR), rising 5.8 per cent to $2.39, followed by shares in Afterpay (ASX:APT) and Netwealth Group (ASX:NWL).
The worst performing stock in the S&P/ASX 200 is Chorus (ASX:CNU),dropping 8.6 per cent to $6.68, followed by shares in Janus Henderson Group (ASX:JHG) and Corporate Travel Management (ASX:CTD).
Commodities and the dollar
Gold is trading at US$1,803 an ounce.
Iron ore price fell 0.2 per cent to US$106.32
Iron ore futures are pointing to a rise of 0.3 per cent.
One Australian dollar is buying 69.48 US cents.