Construction work done down 0.7% in June quarter: ASX 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. The big four banks weighed on the markets this morning, all down. Shares in Worley (ASX:WOR) and Cleanaway waste management (ASX:CWY) are currently doing well.

The S&P/ASX 200 index 

The S&P/ASX 200 index is 78 points down at 6,083. On the futures market the SPI is suggesting a fall of 75 points.

Local economic news

Construction work done in the June quarter fell 0.7 per cent quarter on quarter and 2.2 per cent compared to the June quarter last year on a seasonally-adjusted basis.
The total value of work done was $50.1 billion.

Broker moves

Citi rates Oil Search (ASX:OSH) as Upgrade to a Buy from a Neutral.
The broker believes a value argument is developing for Oil Search and upgrades to Buy/High Risk from Neutral/High Risk. The High Risk tag is retained because of the potential for oil prices to be volatile. Unless there is another sharp contraction in the oil price, however, Citi believes Oil Search has raised enough equity, although a top up may be required for the final investment decision on Alaska to keep the non-escrowed cash balance above US$50m. Target is raised to $3.87 from $3.76. Shares in Oil Search (ASX:OSH) are currently 1.2 per cent higher at $3.06.

Company news

Regis Resources (ASX:RRL) record net profit after tax of $200 million, with a net profit after tax margin of 26 per cent and a Return on Equity of 24 per cent. A lift in gold production in the 2021 financial year and high gold price underwrote a record full year profit. They saw revenue of $757 million from 353,182oz of gold sold at an average price of $2,200/oz. Shares in Regis Resources (ASX:RRL) are 2.5 per cent lower at $5.41.

Best and worst performers

The best-performing sector is Healthcare losing the least at 0.1 per cent, while the worst performing sector is Utilities losing at 3.7 per cent.

The best performing stock in the S&P/ASX 200 is Worley (ASX:WOR) rising 7.7 per cent to $4.01, followed by shares in Cleanaway waste management (ASX:CWY) and Austal (ASX:ASB).

The worst performing stock in the S&P/ASX 200 is Bravura Solutions (ASX:BVS) dropping 16.7 per cent to $3.60, followed by shares in Whitehaven Coal (ASX:WHC) and APA Group (ASX:APA).

Commodities and the dollar

Gold is trading at US$1,929 an ounce.
Iron ore price is 1.8 per cent lower at US$122.99.
Iron ore futures are suggesting a fall of 0.6 per cent.
One Australian dollar is buying 72.05US cents.