Netwealth (ASX:NWL) in negotiations over facility & deposit agreements: ASX is tracking 0.3% higher at noon

Market Reports

by Melissa Darmawan

The Australian share market is pushing on from a flat start despite a weak lead from the US markets. Most sectors are in the green with technology shares dragging the market. Energy stocks are in the spotlight after a 6 per cent jump after oil prices rebounded from Tuesday's decline after a grounding of a ship in the Suez Canal. The incident caused concerns that it could delay crude shipments. Retail fashion company Premier Investments (ASX:PMV) are lifting after announcing its first half profit results yesterday while Resolute Mining (ASX:RSG) is down 22 per cent. The company received an unexpected letter from the Ghanaian Minerals Commission that the mining lease for the Bibiani gold mine has been terminated.

The ASX 200 is tracking 19 points up or 0.3 per higher at 6,798. The SPI futures are suggesting a rise of 26 points.

Local economic news

Australian Bureau of Statistics released data today. In their National Accounts, Finance & Wealth for the December quarter, household wealth increased by 4.3 per cent which is the highest quarterly growth rate since December quarter 2009. Labour Force numbers for February saw unemployment improved from 6.3 per cent to 5.8 per cent.

Broker moves

Macquarie rates medical equipment company Polynovo (ASX:PNV) as an outperform from a neutral with a target price of $3.20. The broker believes the company is well positioned as entry into sizeable markets such as chronic wounds and hernias should support growth over the medium to longer term. There is a degree of short-term uncertainty due to the pandemic which the broker acknowledges. Shares in Polynovo (ASX:PNV) are trading 0.4 per cent higher at $2.88.

Company news

Wealth platform provider, Netwealth (ASX:NWL) says that negotiations are underway with ANZ and other banks to establish an alternate facility and deposit rate. The current agreement with ANZ is set to be terminated in 12 months. The company attributes the change to historically low interest rates and reduced cost of funding for banks. Shares in Netwealth (ASX:NWL) are 11.7 per cent lower at $14.10.

Best and worst performers

The best-performing sector is Healthcare adding 1.1 per cent, while the worst performing sector is Information Technology dropping 1.3 per cent.

The best performing stock in the S&P/ASX 200 is Premier Investments (ASX:PMV), rising 4.4 per cent to $24.88 followed by shares in Brickworks (ASX:BKW) and Washington H Soul Pattison (ASX:SOL).

The worst performing stock in the S&P/ASX 200 is Resolute Mining (ASX:RSG) dropping 22.6 per cent to $0.49 followed by shares in Hub24 (ASX:HUB) and Netwealth (ASX:NWL).

Commodities and the dollar
Gold is trading at US$1,734 an ounce.
Iron ore price gained 0.2 per cent to US$167.34.
Iron ore futures are pointing to a rise of 2.4 per cent.
One Australian dollar is buying 75.96 US cents