Genworth (ASX:GMA) scraps dividend after $174M loss: Aus shares 0.3% lower at noon

Market Reports

by Katrina Bullock

The Australian share market opened flat following mixed leads from Wall Street and is tracking 0.3 per cent lower at noon. Most of the sectors are down this morning with Energy suffering the worst losses.

The S&P/ASX 200 index is 18 points down at 6,832. On the futures market the SPI is 21 points lower.

Broker moves

Credit Suisse rates AGL Energy (ASX:AGL) as an underperform, rising its price target to $9.70. The company’s first half profit was down 27 per cent, which was 6 per cent below the broker’s forecast. Credit Suisse believes the company is on track to achieve most, but not all of its stated operating costs expenditure reductions. Shares in AGL Energy (ASX:AGL) are trading 2.04 per cent lower at $11.07.

Company news

Genworth Mortgage Insurance Australia (ASX:GMA) has scrapped its dividend after recording a $174.1 million loss for the 2020 financial year. Given the result, for the first time since listing the company has decided not to pay an interim or final dividend. Shares in Genworth Mortgage Insurance Australia (ASX:GMA) are trading 5.7 per cent lower at $2.67.

Chief financial officer Toby David has resigned from employee experience software company, Limeade (ASX:LME) after 4 years with the company. Limeade expects to report a net loss after tax of between $1.5 and $3.5 million for the 2020 year.

Hub24 (ASX:HUB) has entered a trading holt ahead of an expected announcement about the company’s proposed acquisition of Xplore Wealth.

Best and worst performers

The best-performing sector is Communications, adding 0.9 per cent, while the worst performing sector is Energy, shedding 1 per cent.

The best performing stock in the S&P/ASX 200 is Collins Food (ASX:CKF), rising 2.2 per cent to $9.99, followed by shares in Nanosonics (ASX:NAN) and News Corporation (ASX:NWS).

The worst performing stock in the S&P/ASX 200 is Eagers Automotive (ASX:APE),dropping 5.2 per cent to $13.85, followed by shares in Perseus Mining (ASX:PRU) and Westgold Resources (ASX:WGX).

Commodities and the dollar

Gold is trading at US$1,824 an ounce.
One Australian dollar is buying 77.53 US cents.