Confidence has returned to the local sharemarket with easing fears over Italy’s political landscape. The ASX 200 has recovered all of yesterday’s losses at lunch as the main index trades 31 points or 0.5% higher and back above 6000 to 6016 points, at the time of writing.
Resource stocks have been among the biggest improvers so far with the energy sector recording a 2% gain on a stronger oil prices overnight. Major energy producers are lifting by roughly 2%. Major miners are also benefitting from stronger iron ore prices with BHP up 1.4% and Fortescue (FMG) 2% higher. The Utilities and healthcare sectors are weaker with 0.5% dip in CSL weighing.
ASX is entering the electronic property settlement market via a new company Sympli Australia with the national exchange operator looking to invest $30 million over the next three years in the business.
Accounting software business MYOB Ltd (MYO) has terminated its proposed acquisition of rival Reckon (RKN) for $180 million due to protracted regulatory approval for the takeover. Both RKN and MYO shares have lost 6.5% and5.5% respectively.
Zip Co Ltd (Z1P) has jumped 4.2% after Super Retail Group signed on to its digital payments platform with brands such as Rebel Sport, Supercheap Auto, BCF and Macpac to utilise the payment system in-store in July 2018. SUL shares are 1.25% higher.
Sino Gas & Energy (SHE), which has gas assets in China, has received a takeover bid by private equity firm, Lone Star for $0.25 per share and valuing the company at $530 million. SHE shares have jumped 14% on the news.
On the economic front, Private capital expenditure for the March quarter has come in below consensus on falling building expenditure. The Aussie dollar dipped slightly on the release but is significantly higher than the same time yesterday, trading at 75.6 US cents.
So far, 1.6B units have been traded worth $2.5B with 650 stocks higher, 406 weaker and 368 unchanged.
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Published by James Tao (Author), CommSec