Retail turnover rose 2.4% in June thanks to cafes and restaurants: ASX is tracking 1.3% lower at noon

Market Reports

by Rachael Jones

The Australian share market dropped at the open and is now tracking 1.3 per cent lower at noon. Shares in Resolute Mining (ASX:RSG) are doing well today after reporting a 64 per cent increase in Syama Underground gold. Meanwhile shares in Mesoblast (ASX:MSB) have dropped almost 7 per cent. As for the sectors today, leading the pack is Energy, the only sector in the green. Healthcare is falling behind.

The S&P/ASX 200 index

The S&P/ASX 200 index is 77 points down at 6,079. On the futures market the SPI is 83 points lower.

Local economic news

Retail turnover rose 2.4 per cent in June led by an increased activity in cafes, restaurants and takeaway services, according to preliminary retail trade figures released today by the Australian Bureau of Statistics (ABS).

Broker moves

Macquarie rates Silver Lake Resources (ASX:SLR) as an Upgrade to an Outperform from a Neutral. Their June quarter production beat Macquarie by 26 per cent, and costs by 12 per cent. FY21 production guidance is also greater than the broker had forecast, with Mount Monger underground gaining traction over the year. FY21 will also see investments in the high-grade Rothsay project and a plant upgrade at Deflector, pushing production to 275 thousand ounces in FY22. Target rises to $2.60. Shares in Silver Lake Resources (ASX:SLR) are trading 2.9 per cent higher at $2.51.

Company news

Health club Viva Leisure (ASX:VVA) are set to acquire Australian Fitness Management, the master franchiser of Plus Fitness for of $18 million. The company comprises 197 franchised clubs across Australia, New Zealand and India. They have approximately 175,000 combined members and revenues in excess of $100 million. Viva Leisure (ASX:VVA) are trading 7.3 per cent higher at $2.51.

Best and worst performers

The best-performing sector is Energy gaining 1.1 per cent, while the worst performing sector is Healthcare losing 3.1 per cent.

The best performing stock in the S&P/ASX 200 is Resolute Mining (ASX:RSG) rising 10.1 per cent to $1.36, followed by shares in Challenger (ASX:CGF) and Beach Energy (ASX:BPT)

The worst performing stock in the S&P/ASX 200 is Mesoblast (ASX:MSB) dropping 7.6 per cent to $3.42, followed by shares in Pro medicus (ASX:PME) and Collins Foods (ASX:CKF).

Commodities and the dollar

Gold is trading at US$1,860 an ounce.
Iron ore price is 1.7 per cent higher at US$111.43.
Iron ore futures are suggesting a rise of 2.3 per cent.
One Australian dollar is buying 71.39US cents.