Market rallies on hopes of economy reopening: Aus shares 1.1% higher at noon

The Australian share market opened higher following positive leads from international markets and has jumped 1.1 per cent higher at noon. The positive sentiment in the market springs from the government’s moves to reopen the Australian economy. All of the sectors are in positive territory this morning.

The S&P/ASX 200 index is 59 points higher at 5,450. On the futures market the SPI is eyeing a rise of 47 points.

Broker moves

Macquarie rates the ASX (ASX:ASX) as an underperform with a 12-month price target of $71.50. The ASX has reported that average daily volumes were up 57 per cent in the second half of the 2020 financial year to date compared to the previous year. However the broker notes that the stock is currently valued 29 per cent higher than its five-year average and at a 67 per cent premium over the All Industrials. Shares in the ASX (ASX:ASX) are trading 0.8 per cent higher at $82.98.

Company news

Advanced Nanotek (ASX:ANO) has released impressive guidance in anticipation of its 2020 financial year results. It expects net profit before tax to be around $8.4 million – that’s a 250 per cent increase on its FY2019 result. The company anticipates a 46 per cent increase in turnover year on year to $18 million. Shares in Nanotek (ASX:ANO) are trading 12.2 per cent higher at $5.26 at noon.

Best and worst performers

The best-performing sector is Energy, adding 2.2 per cent, while the worst performing sector is Consumer Staples, adding 0.2 per cent.

The best performing stock in the S&P/ASX 200 is Webjet (ASX:WEB), rising 20.8 per cent to $3.54, followed by shares in Southern Cross Media Group (ASX:SXL) and AP Eagers (ASX:APE).

The worst performing stock in the S&P/ASX 200 is Graincorp (ASX:GNC),dropping 3.9 per cent to $3.46, followed by shares in CSR (ASX:CSR) and Fisher & Paykel Healthcare Corporation (ASX:FPH).

Asian markets

Japan’s Nikkei has added 1.6 per cent, Hong Kong’s Hang Seng has gained 2.1 per cent and the Shanghai Composite has added 0.6 per cent.

Commodities and the dollar

Gold is higher, trading at US$1,711 an ounce.
Iron ore price rose 5 per cent to US$88.60.
Iron ore futures are pointing to a fall of 0.1 per cent.
One Australian dollar is buying 65.58 US cents.

Source: Finance News Network