Business indicators fall short of expectations: ASX tracking 0.6% lower at noon
The Australian share market is tracking 0.6 per cent lower at noon. Shares in Treasury Wine Estates (ASX:TWE) dropped today on news of Chinese tariffs on Australian wine imports. Meanwhile, shares in Bega Cheese (ASX:BGA) continue to rally after they successfully raised $284 million last week.
The S&P/ASX 200 index
The S&P/ASX 200 index is 39 points down at 6,562. On the futures market the SPI is suggesting a fall of 43 points.
Local economic news
Business Indicators, the quarterly estimates of private sector sales, wages, profits and inventories missed expectations. Company gross operating profits rose 3.2 per cent seasonally adjusted. Wages and salaries rose 2.4 per cent seasonally adjusted
Broker moves
Citi rates Treasury Wine Estates (ASX:TWE) as a Downgrade to a Sell from a Buy. China has imposed anti-dumping tariffs of 169 per cent on Treasury Wine. Citi believes this will impact the company's earnings significantly in the near-term on account of an oversupply of Australian wine. Target price is $8.20. Shares in Treasury Wine Estates (ASX:TWE) are currently 7.04 per cent lower at $8.58.
Company news
Select Harvests Limited (ASX:SHV) is pleased to announce its results for the year ended 30 September 2020, with a reported net profit after tax (NPAT) of $25.0 million compared to $53.0 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $57.8 million down from $95.2 million in the same corresponding period. It’s almond division did well for a second consecutive year, all orchard age cohorts yielded at levels higher than industry standard. Shares in Select Harvests Limited (ASX:SHV) are 3.9 per cent lower at $5.97.
Best and worst performers
The best-performing sector is Infotech adding 0.2 per cent, while the worst performing sector is Consumer Discretionary shedding 1.2 per cent.
The best performing stock in the S&P/ASX 200 is Bega Cheese (ASAX:BGA) rising 4.7 per cent to $5.67, followed by shares in Lynas Corporation (ASX:LYC) and Fisher and Paykel Healthcare Corp (ASX:FPH).
The worst performing stock in the S&P/ASX 200 is Treasury Wine Estates (ASX:TWE) dropping 7 per cent to $8.58, followed by shares in Whitehaven Coal (ASX:WHC) and Perseus Mining (ASX:PRU).
Commodities and the dollar
Gold is trading at US$1,783 an ounce.
Iron Ore Price has added 1 per cent at $129.62.
Iron ore futures are pointing to a rise of 0.1 per cent.
One Australian dollar is buying 74.05US cents.
Copyright 2020 – Finance News Network
Source: Finance News Network
