Travel stocks take flight: ASX 0.2% higher at noon

Market Reports

by Anna Napoli

The S&P/ASX 200 has fallen flat in the first two hours of trade despite strong leads from US markets. Falls in the industrials, financials, and consumer staples sectors have offset gains in tech, health care and consumer discretionary sectors. The major banks are dragging on the market, meanwhile Travel companies are among the best performers on positive coronavirus developments including the possibility of a trans-Tasman travel bubble before Christmas. Webjet is up 8 per cent while flight centre has soared 7.3 per cent. A2 Milk is down almost 10 per cent to $15.52 after a trading update which flagged a contraction in daigou sales through September. The S&P ASX 200 is 0.2 per cent higher or 11 points up at 5976 futures pointing to a rise of 30 points.

Broker call

Bell Potter has maintained its ‘buy’ recommendation on software business Technology One. The broker suggested that the lack of an update in the lead up to its results announcement meant that the company was on track to achieve its guidance. Shares in the company have lifted 2.4 per cent to $8.08 in morning trade.

Company news

Buy now pay later company Sezzle (ASX:SZL) is trading higher after announcing the commencement of a Proof Of Concept (POC) with retail giant Target Corporation (NYSE:TGT).Shares in the company have lifted 3.5 per cent to $6.78 on the news.

Best and worst performers

The best-performing sector is tech gaining 2.4 per cent, while the worst performing sector is consumer staples losing 1.3 per cent. The best performing stock in the S&P/ASX 200 is Mesoblast  (ASX:MSB) rising 8.96 per cent to $5.35, followed by shares in Webjet (ASX:WEB) and Flight Centre (ASX:FLT) The worst performing stock in the S&P/ASX 200 is A2 Milk (ASX:A2M) dropping 9.6 per cent to $15.52, followed by shares in TPG Telecom (ASX:TPG) and Transurban Group (ASX:TCL).

Commodities and the dollar

Gold is trading at US$1,861 an ounce.
Iron ore price Is 0.5 per cent higher at US$115.21
Iron ore futures are suggesting a rise of 0.7 per cent.
One Australian dollar is buying 70.57 US cents.