Shares in Resmed (ASX:RMD) take a dip: ASX tracking 0.7% higher at noon

Market Reports

by Rachael Jones

The Australian share market shot up at the open and is now tracking 0.7 per cent higher at noon. Shares in Harvey Norman Holdings (ASX:HVN) are doing well today.
Shares in Resmed (ASX:RMD) and the Scentre Group (ASX:SCG) have taken a dip. The Scentre Group (ASX:SCG) released a report today saying their earnings later this month are expected to report net operating cashflow after interest, overheads and tax "in excess" of $250 million for the year to June.

The S&P/ASX 200 index 

The S&P/ASX 200 index is 42 points up at 6,043. On the futures market the SPI is 0.8 per cent higher.

Broker moves

Morgans rates Virgin Money (ASX:VUK) as Downgrade to a Reduce from a Hold.
They provided a 3Q20 trading update last week, which failed to excite Morgans. Credit loss provisions increased by -£42 million over the quarter, which was unsurprising to the broker, given the grim macroeconomic backdrop in the UK. The analyst forecasts a further -£285 million provision top-up for the mortgage book over the next 12 months. Target price is $1.30. Shares in Virgin Money (ASX:VUK) are currently flat at $1.65.

Company news

Metcash (ASX:MTS) today announced that Alistair Bell has been appointed to succeed Brad Soller as Group CFO. Most recently, he was Group CFO of GrainCorp, a position he held for almost 10 years overseeing the finance, treasury, corporate development and strategy functions. The appointment follows Metcash’s announcement on 5 March 2020 regarding the planned retirement of Mr Soller. Mr Bell will join Metcash on 1 September 2020 and work with Mr Soller on his induction and a smooth transition into the Group CFO role. Shares in Metcash (ASX:MTS) are up 1.3 per cent to $2.83.

IPO

We have an IPO today, Dynamic Drill and Blast Holdings (ASX:DDB) came supplier of drilling and blasting services to clients in the mining and construction sectors in Western Australia. Issued at 20 cents, opened at 50 cents and currently the shares are 48.5 cents.

Best and worst performers

The best-performing sector is materials gaining 2.3 per cent, while the worst performing sector is healthcare losing at 0.9 per cent.

The best performing stock in the S&P/ASX 200 is Harvey Norman Holdings (ASX:HVN) rising 6.9 per cent to $4.01, followed by shares in Corporate Travel Management (ASX:CTD) and Ooh!Media (ASX:OML).

The worst performing stock in the S&P/ASX 200 is Resmed (ASX:RMD) dropping 5.26 per cent to $26.48, followed by shares in Scentre Group (ASX:SCG) and Centuria Industrial REIT (ASX:CIP).

Commodities and the dollar

Gold is trading at US$2,042 an ounce.
Iron ore price is 0.2 per cent higher at US$118.10.
Iron ore futures are suggesting a rise of 2.8 per cent.
One Australian dollar is buying 72.01US cents.