Banks rise on plans to soften responsible lending laws: Aus shares 1.4% higher at noon

Market Reports

by Katrina Bullock

The Australian share market has advanced in early trade. Almost all of the sectors are up, with Financials leading the charge following news that the Federal Government is looking to do a backflip and wind back responsible lending laws. Treasurer Josh Frydenberg says "maintaining the free flow of credit through the economy is critical to Australia's economic recovery plan". He argued that the legislation has “become overly prescriptive, and responsible lending has become restrictive lending." The proposed changes would remove some of the safeguards banks are required to have in place to ensure people do not enter into loans they cannot afford.

The S&P/ASX 200 index is 83 points up or 1.4 per cent higher at 5,959. On the futures market the SPI is pointing to a 99 point rise.

Local economic news

The Australian Bureau of Statistics released preliminary international trade figures for the month of August. Australian goods exported in August declined around 2 per cent month on month; while goods imported were down around 7 per cent.

Company news

BGH Capital’s subsidiary which is set to purchase Village Roadshow (ASX:VRL) may not have to pay the cinema uplift of $0.08 per share. Village Roadshow has been informed that the scheduled Australian cinema release of 3 films in the list of titles agreed between the parties has been deferred into the financial year ending 30 June 2022. This change to the movie slate for the 2021 financial year constitutes a Film Deferral Event under the implementation agreement. Under the terms of the agreement, if a Film Deferral Event continues to subsist, the Cinema Uplift of $0.08 per share is not payable. Shares in Village Roadshow (ASX:VRL) are trading 0.5 per cent lower at $2.10 at noon.

Best and worst performers

The best-performing sector is Financials, adding 3.6 per cent, while the worst performing sector is Consumer Staples, shedding 0.2 per cent.

The best performing stocks in the S&P/ASX 200 this morning are the Banks. Westpac Banking Corporation (ASX:WBS) is the best performer rising 6.8 per cent to $17.48, followed by shares in National Australia Bank (ASX:NAB) and the Australia and New Zealand Banking Group (ASX:ANZ).

The worst performing stock in the S&P/ASX 200 is NIB Holdings (ASX:NHF),dropping 2.8 per cent to $4.21, followed by shares in Atlas Arteria (ASX:ALX) and Monadelphous Group (ASX:MND).

Commodities and the dollar

Gold is trading at US$1,864 an ounce.
Iron ore price rose 0.8 per cent to US$114.67.
Iron ore futures are pointing to a fall of 0.9 per cent.
One Australian dollar is buying 70.54 US cents.