A positive start for today's IPOs: ASX tracking 0.2% lower

A positive start for today’s IPOs: ASX tracking 0.2% lower

The Australian share market opened lower this morning with the S&P/ASX 200 Index 11 points down or 0.2 per cent lower at 6650. Futures are pointing to a fall of 12 points. Shares in Xero (ASX:XRO) did well today meanwhile shares in Mesoblast (ASX:MSB) didn’t do so well after releasing a report that its cell therapy rexlemestrocel-L treatment didn’t quite make expectations in its phase three trials.

Economic news

Between the week ending 14 March 2020 and the week ending 28 November 2020, payroll jobs decreased by 2.0 per cent, total wages decreased by 2.6 per cent.

Broker call

UBS rates AGL Energy (ASX:AGL) as a Downgrade to a Sell from a Neutral with the target falling to $12.25 from $15.60. The downgrade is driven by margin pressure materially reducing the broker's wholesale electricity price forecast and the push towards renewables. Shares in AGL Energy (ASX:AGL) are currently 3.6 per cent lower at $13.03.

Company news

The ACCC has started proceedings in the Federal Court against Retail Food Group Limited (ASX:RFG) and five of its related entities alleging the food and beverage franchise company engaged in unconscionable conduct and made false or misleading representations in its dealings with franchisees, in breach of the Australian Consumer Law. The company manages and operates a number of franchises, including Michel’s Patisserie, Donut King and Gloria Jean’s Coffee. The ACCC alleges that Retail Food Group acted unconscionably and engaged in false, misleading and deceptive conduct when it sold or licensed 42 loss-making corporate stores to incoming franchisees between 2015 and 2019. Shares in Retail Food Group Limited (ASX:RFG) are currently 23.1 per cent lower at $0.07.

IPO

Akora Resources (ASX:AKO) started trading today. The exploration and development of iron ore company issue price was $0.25, it started trading at $0.32 and is currently at $0.44.

SILK Laser Australia (ASX:SLA) also started trading today, It’s shares were issued at $3.45, it started trading at $3.65 and is currently at $3.53.

Best and worst performers

The best-performing sector is Real Estate Investment Trust gaining 1.1 per cent while the sector trailing behind is Materials dropping 1.6 per cent.
The best performing stock in the S&P/ASX 200 is Xero (ASX:XRO) rising 3.5 per cent to $149.04, followed by shares in Reliance WorldWide (ASX:RWC) and Mirvac Group (ASX:MGR)
The worst performing stock in the S&P/ASX 200 is Mesoblast (ASX:MSB) dropping 12.3 per cent to $3.98, followed by shares in Mineral Resources (ASX:MIN) and WestGold Resources Management (ASX:WGX).

Commodities

Gold is trading at US$1,827 an ounce.
Iron ore is 3.6 per cent lower $154.37.
Futures are suggesting a fall of 0.2 per cent.
One Australian dollar is buying 75.45US.

Source: Finance News Network