For the second day in a row the Australian sharemarket (ASX200) has had a lack lustre opening rising only 7.4 points or 0.1 per cent to 6478.6. This comes after the Dow Jones finished low er by 121 points or 0.5 per cent. The Technology and Materials sectors led the charge this morning w ith the Communications and Financials sectors suffering the biggest losses. Miners are improving despite Iron Ore falling 3.4 per cent to $83.10 overnight. How ever the major iron ore miners have all rallied higher w ith Rio Tinto (RIO) up $1.43 or 1.71 per cent or $85.17.
Telstra (TLS) is dow n 10 cents or 2.67 per cent as it trades exdividend today. Meanw hile, Macquarie Group (MQG) is in a trading halt as it looks to raise up to $1 billion via an institutional placement to invest in new opportunities.
In reporting season new s, tw o of the most heavily traded shares reported this morning in Afterpay Touch (APT) and Bellamy’s Australia (BAL). The results and market reactions to both w ere mixed. APT reported a 140 per cent rise in underlying sales to $5.2 billion. They’ve invested heavily in the US and UK to expand their operations this year. APT has rallied strongly currently up $2.20 or 8.5 per cent to $28.07. In contrast BAL reported a 50 per cent decline in full year profit to $22.1 million, impacted by higher costs and the delay in Chinese regulatory approvals. BAL has been sold dow n 24 cents or 2.98 per cent to $7.81.
Virgin Australia (VAH) announced that it w ill cut 750 jobs in their full year result this morning as part of a restructure. This is VAH’s seventh straight annual loss and they w ill once again not pay a final dividend. VAH has fallen 0.5 cents or 3 per cent to 16 cents.
Bega Cheese (BGA) also reported some negative numbers in their result how ever, like OZL, it’s rallied anyw ay. BGA announced a 59 per cent drop in full year profit amid a shrinking milk market and fierce competition. They’ve battled against the drought along Australia’s east coast as w ell as increased w ater, hay and grain prices. BGA is currently up 29 cents or 7.6 per cent to $4.09.
On the back of a number of broker valuation upgrades Sandfire Resources (SFR) has rallied 44 cents or 7.7 per cent to $6.14 but on the flip side Speedcast International (SDA) received a number of dow ngrades and has consequently fallen 21.5 cents or 20.3 per cent to 91.5 cents.
The Aussie dollar has continued to fall over the course of this morning currently holding around 67.46 US cents. 1.5 billion shares have changed hands so far today w orth $2.6 billion. 557 stocks are up, 427 dow n and 360 are unchanged.
Published by CommSec