Things are currently looking bright on the Australian share market. It shot up at the open and is now tracking almost 1 per cent higher at noon. The tech sector is currently doing well as is healthcare. WiseTech Global (ASX:ASX:WTC) shares saw a huge leap this morning after reporting a almost 200 per cent rise in their NPAT over the year. Shares in Resolute Mining (ASX:RSG) didn’t fare so well.
The S&P/ASX 200 index is 60 points up at 6,184. On the futures market the SPI is 60 points higher.
Local economic news
The six-month annualised growth rate in the Westpac-Melbourne Institute Leading
Index appears to have bottomed out, rising from -4.43 per cent to -4.37 per cent in July.
Citi rates Cochlear (ASX:COH) as Downgrade to Sell from a Neutral. FY20 results were largely in line with expectations. Citi reduces FY21-22 estimates for earnings per share by -24-27 per cent. The broker expects flat sales compared with FY20, with growth returning in FY22.
The broker acknowledges Cochlear could increase its implant market share given continued investment, potentially helped by the recall from Advanced Bionics.Target is lowered to $184 from $203. Shares Cochlear (ASX:COH) at noon 2.4 per cent lower at $212.44.
The Reject Shop (ASX:TRS) report that sales in FY20 increased by $26.9 million or 3.4 pe cent on the pcp to $820.6 million. Covid-19 meant Australians were spending on essential products. Strong category performances were seen in cleaning, groceries, toiletries and pet care. There was also increased customer demand for ‘stay at home’ categories, including craft and stationery, toys, garden, furniture, electronics, hardware and kitchen. However, certain traditionally strong performing categories experienced a decline in sales during the second half due to Covid-19 restrictions. These products included Easter-related products, luggage, party/events as well as cards and wrap. The Reject Shop (ASX:TRS) trading 10.4 per cent lower at $6.96.
Best and worst performers
The best-performing sector is healthcare gaining almost 5 per cent, while the worst performing sector is materials losing at 0.9 per cent.
The best performing stock in the S&P/ASX 200 is WiseTech Global (ASX:WTC) rising 28.6 per cent to $26.76, followed by shares in Corporate Travel Management (ASX:CTD) and Vocus Group (ASX:VOC).
The worst performing stock in the S&P/ASX 200 is Resolute Mining (ASX:RSG) dropping 17.1 per cent to $1.11, followed by shares in Nearmap (ASX:NEA) and Macmillan Shakespeare (ASX:MMS).
Commodities and the dollar
Gold is trading at US$1,994 an ounce.
Iron ore price is 5.4 per cent higher at US$128.57.
Iron ore futures are suggesting a rise of 0.6 per cent.
One Australian dollar is buying 72.42US cents.