Lockdowns hinder economy recovery: ASX tracking 0.7% up at noon

Market Reports

by Rachael Jones

The Australian share market shot up at the open and is now tracking almost 0.7 per cent higher at noon. Utlities the only sector making losses so far today. Treasury secretary Steven Kennedy though says an extended lockdowns in Melbourne and Queensland border closures risk hurting the economy and jobs more than forecast in last week's budget update. Victoria has reported 723 new coronavirus cases meanwhile NSW has 18 new cases today.

The S&P/ASX 200 index is 41 points up at 6,047. On the futures market the SPI is suggesting a rise of 35 points.

Local economic news

Total payroll jobs decreased by 1.1 per cent in Australia between mid-June and mid-July according to figures released by the Australian Bureau of Statistics today.

In Victoria, payroll jobs decreased by 2.2 per cent between mid-June and mid-July as additional COVID-19 restrictions were progressively introduced, with jobs 7.3 per cent below mid-March in this state.

The number of dwellings approved fell 4.9 per cent to an eight year low in June.

Broker moves

UBS rates Dominos Pizza Enterprises (ASX:DMP) as a Downgrade to a Sell from a Neutral. The company has outperformed the ASX200 by about 109 per cent year to date due to covid-19 induced effects like delivery uptake. UBS considers the stock to exhibit defensive characteristics. Earnings forecasts for FY20-22 have been upgraded due to strong like-for-like sales, currency tailwinds and an increasing number of stores. The company is positively affected by the shift to online but the broker but believes this has already been priced in.Target price is $64.00. Shares in Dominos Pizza Enterprises (ASX:DMP) are currently tracking at 0.03 per cent higher at $74.85.

Company news

Dexus (ASX:DXS) will sell six industrial properties to Dexus Australia Logistics Trust for $269.4 million at a passing yield of 5.3 per cent. Five high quality industrial assets are in Victoria with Lakes Business Park South is strategically located in Botany, 12 kilometres south-east from Sydney CBD. The portfolio is 91 per cent occupied with a WALE of 7.4 years and has been contracted to be sold to DALT. Shares in Dexus (ASX:DXS) are 0.5 per cent higher at $8.69 at noon.

Best and worst performers

The best-performing sector is Infotech gaining 2.3 per cent, while the worst performing sector is Utlities losing at 0.2 per cent.

The best performing stock in the S&P/ASX 200 is Wisetech Global (ASX:WTC) rising 5.7 per cent to $20.99, followed by shares in Vocus Group (ASX:VOC) and ALS (ASX:ALQ).

The worst performing stock in the S&P/ASX 200 is Sandfire Resources (ASX:SFR) dropping 7.2 per cent to $5.16, followed by shares in Ioof Holdings (ASX:IFL) and Vicinity Centres (ASX:VCX).

Commodities and the dollar

Gold is trading at US$1,963 an ounce.
Iron ore price is 3.7 per cent higher at US$110.57
Iron ore futures are suggesting a rise of 0.8 per cent.
One Australian dollar is buying 71.77US cents.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.