Miners and ZipCo leads, Why Wisetech's rating got a cut: ASX trading 0.4% higher at noon

Market Reports

by Melissa Darmawan

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The Australian sharemarket has continued to rise, lifting as high as 0.7 per cent to a three week high this morning and is tracking 0.4 per cent or 28 points higher at 7,355 at noon following Wall St’s advance. The SPI futures are pointing to a rise of 29 points.

The biggest contributors is Materials adding 0.9 per cent followed by Industrials and Consumer Staples. Healthcare is the outlier, down 0.2 per cent.

A couple of big names are weighing on the index with the likes of biotech CSL (ASX:CSL) down 0.75 per cent at $2.11, Woodside Petroleum (ASX:WPL) skid 0.25 per cent at $23.56 and Tabcorp (ASX:TAH) fell 2 per cent at $4.78.

Buy now pay later and heavyweight mining stocks have gained. Zip Co (ASX:Z1P) soars 10.5 per cent at $8.53 as the best performer so far while BHP (ASX:BHP) added 1.8 per cent followed by Rio Tinto, up 0.9 per cent. Wisetech (ASX:WTC) is the worst performer this morning.

Flight and travel stocks are mixed on news that NSW reported 38 new coronavirus cases, the highest number of local cases recorded in a day in more than 14 months. Eleven of the cases had been in the community for their entire infectious period and nine had only been in isolation for part of their infectious period.

Sydney Airport (ASX:SYD) is flying 3.2 per cent higher at $7.85 while Qantas (ASX:QAN) and Webjet (ASX:WEB) are over 0.2 per cent lower.

Real estate investment trust manager Rural Funds Group (ASX:RFF) is in a trading halt pending an announcement to a proposed capital raising.

Company news

Wealth platform provider Netwealth (ASX:NWL) released June quarter results with figures showing a 12 per cent rise in funds under management (FUA) and a 102 per cent boost in inflows.

Worley (ASX:WOR) has signed a deal with Red Sea National Refining and Petrochemicals Company for a greenfield integrated refinery and petrochemicals complex in Egypt.

Wealth services provider AMP (ASX:AMP) is set to sell its $60 billion global listed equities and global income fund to millionaire's factory Macquarie Group (ASX:MQG) for up to $185 million.

Broker moves

Macquarie downgrades Wisetech (ASX:WTC) to hold with a price target of $33. Factoring in the latest container volumes statistics, the broker lowers its FY21-23 EPS forecasts. With limited visibility on catalysts in the coming six months, Macquarie downgraded its rating ahead of the company’s results along with a lowered target price to $33 from $34, adjusting for the weaker-than-expected container volumes. Shares in Wisetech (ASX:WTC) are trading 2.7 per cent lower at $31.38.

Best and worst performers

The best-performing sector is Materials, up 1.09 per cent. The worst-performing sector is Health Care, down 0.17 per cent.

The best-performing stock in the S&P/ASX 200 is Zip Co (ASX:Z1P), trading 8.16 per cent higher at $8.35. It is followed by shares in Nuix (ASX:NXL) and Nearmap (ASX:NEA).

The worst-performing stock in the S&P/ASX 200 is WiseTech Global (ASX:WTC), trading 2.36 per cent lower at $31.49. It is followed by shares in Unibail-Rodamco-Westfield (ASX:URW) and Corporate Travel Mgmt (ASX:CTD).

Commodities and the dollar

Gold is trading at US$1800.41 an ounce.
Iron ore is flat at US$222.39 a ton.
Iron ore futures are pointing to a fall of 2.9 per cent.
One Australian dollar is buying 74.58 US cents.

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