Annual wage growth lowest in 22 years: ASX tracking 0.3% lower at noon

Market Reports

by Rachael Jones

The Australian share market fell in early trade after a promising start and is now tracking 0.3 per cent lower at noon. Real estate company Unibail-Rodamco-Westfield (ASX:URW) shares are doing well today. Meanwhile, shares in employment company Seek (ASX:SEK) have fallen.

The S&P/ASX 200 index

The S&P/ASX 200 index is 20 points lower at 6,120. On the futures market the SPI is pointing to an 11 point fall.

Local economic news

The seasonally adjusted Wage Price Index (WPI) rose 0.2 per cent in June quarter 2020 and 1.8 per cent through the year, according to figures released today by the Australian Bureau of Statistics (ABS).

Broker moves

Citi rates Wisetech (ASX:WTC) as a Downgrade to a Sell from a Neutral.Target is reduced to $18.40 from $22.60. While there is plenty to like about the stock, given a strong balance sheet and the market-leading Cargowise One platform, the broker envisages downside risk to consensus forecasts because of a combination of macroeconomic conditions and a slowing in acquisitions. While the change in M&A strategy is positive over the medium term Citi considers this negative for revenue growth in the short term. Shares in Wisetech (ASX:WTC) are trading 8.1 per cent lower at $19.02

Company news

West Australian gold development company Stone Resources Australia (ASX:SHK) is pleased to announce that it has today executed a sale purchase agreement (SPA) with Regis Resources (ASX:RRL) for the sale by SRAL of its Ben Hur project on which is made up of two Exploration Licences, three Prospecting Licences, one Miscellaneous Licence and with three mining Leases. Regis Resources acquired resource and tenement holdings for $10 million. Shares in Regis Resources (ASX:RRL) are trading 4.9 per cent lower at $5.41.

Best and worst performers

The best-performing sector is financials gaining 0.9 per cent, while the worst performing sector is materials losing 1.8 per cent.

The best performing stock in the S&P/ASX 200 is Unibail-Rodamco-Westfield (ASX:URW) rising 4.9 per cent to $3.87, followed by shares in Reliance Worldwide Corporation (ASX:RWC) and Virgin Money UK (ASX:VUK).

The worst performing stock in the S&P/ASX 200 is Seek (ASX:SEK) dropping 9.6 per cent to $19.37, followed by shares in Wisetech Global (ASX:WTC) and Mesobalst (ASX:MSB).

Commodities and the dollar

Gold is trading at US$1,883 an ounce.
Iron ore price is 1.6 per cent higher at US$121.09
Iron ore futures are suggesting a fall of 3.3 per cent.
One Australian dollar is buying 71.26US cents.