Australian shares are bouncing back from a dip at the open. CSL has risen almost 1 per cent on news of its COVID-19 supply deal with the Federal Government. BHP Group has risen 2.5 per cent and Rio Tinto is up almost 3 per cent. The S&P/ASX 200 index is 25 points up or 0.4 per cent higher at 5950. On the futures market the SPI is 33 points higher.
Turning to Asian trade where Softbank shares have fallen 5 per cent in early Tokyo trading after reports it had taken massive options positions in leading US tech stocks. The company is on track for its worst day of trade since March 26 when its tumbled 9.4 per cent.
Local economic news
ANZ Australian Job Ads rose 1.6 per cent m/m in August falling short of an expected 6.5 per cent increase and well below the 19.1 per cent increase in July. Job Ads are still down 27 per cent since February and down 30 per cent year on year. The solid rebound in ANZ Job Ads in June and July – which saw more than half the pandemic losses recovered – did not continue into August, with just a 1.6 per cent month on month rise.
With Victoria accounting for more than 26 per cent of the nation’s pre-pandemic employment, the Stage 4 restrictions in Melbourne and Stage 3 in regional Victoria have undoubtedly put the brakes on. Predictably, new SEEK job ads in Victoria have fallen; but SEEK also notes that the improvement in New South Wales ads has been sluggish compared with other parts of the country.
PointsBet (ASX:PBH) has commenced a fully Underwritten Entitlement Offer to Raise A$153.2 million. the institutional component of its 1 for 6.5 accelerated pro rata renounceable entitlement has kicked off at A$6.50 per new share. Shares in Pointsbet (ASX:PBH) last traded at $13.69.
New Zealand’s Laybuy Group Holdings (ASX:LBY), has started trading on the ASX, with an initial price of $1.41. The company started trading at $2.10 and is currently $2.23. Funds raised in the offer have been slated for growth into the UK and Australia. With 174.5 million shares on issue the group’s market capitalisation has jumped to around $356m in early trade.
Best and worst performers
The best-performing sector is materials gaining 1.8 per cent, while the worst performing sector is industrials losing 1.3 per cent.
The best performing stock in the S&P/ASX 200 is Virgin money UK (ASX:VUK) rising 6 per cent to $1.69, followed by shares Webet (ASX:WEB) and IGO (ASX:IGO). The worst performing stock in the S&P/ASX 200 is Mesoblast (ASX:MSB) dropping 4.2 per cent to $4.74, followed by shares in Perenti Global (ASX:PRN) and Ampol (ASX:ALD).
Commodities and the dollar
Gold is trading at US$1,941 an ounce.
Iron ore price Is 2.1 per cent higher at US$129.92
Iron ore futures are suggesting a rise of 1.1 per cent.
One Australian dollar is buying 72.86 US cents.