Nearmap (ASX:NEA) shares drop after guidance downgrade: ASX tracking 0.2% lower at noon

The Australian share market dipped at the open, managed a rise around mid morning trading but is now tracking 0.2 per cent lower at noon. Treasury Wine Estates (ASX:TWE) managed to claw back some of their losses from yesterday seeing their shares rise and Nearmap (ASX:NEA) shares dropped over 20 per cent after they downgraded their ACV guidance. The best performing sector is consumer staples, the worst performing sector is materials. The S&P/ASX 200 index is 11 points down at 7,021. On the futures market the SPI is 7 points lower.

Local economic news

The import price index rose 0.7 per cent this quarter and 1.4 per cent through the year. Falls in iron ore and coal are driving down these prices.

Broker moves

Credit Suisse rates Northern Star Resources (ASX:NST) as Downgrade to Underperform from Neutral. The highlight for the broker was the acquisition of the 50 per cent interest in the Kalgoorlie Superpit, as Northern Star will bring expertise in narrow vein mining and align with Saracen Resources (ASX:SAR) which has open pit expertise. The target price rises to $10.30 from $9.60. Shares in Northern Star Resources (ASX:NST) are currently 1.2 per cent lower at $12.34.

Company news

Suncorp (ASX:SUN) has declared three natural hazard events since the start of 2H20, being the Vic/NSW/Tas bushfires, the South East states hailstorms and the South East Queensland and NSW heavy rain. Net costs associated with the three declared events are expected to be capped at $300 million. Natural hazard costs for 1H20 are confirmed at $519 million. Shares in Suncorp (ASX:SUN) are currently 1.8 per cent lower at $12.69.

Best and worst performers

The best-performing sector is Consumer Staples, adding 0.5 per cent, while the worst performing sector is Materials at 0.8 per cent lower.

The best performing stock in the S&P/ASX 200 is Gold Road Resources (ASX:GOR) rising 8.9 per cent to $1.47, followed by shares in Beach Energy (ASX:BPT) and Monadelphous (ASX:MND).

The worst performing stock in the S&P/ASX 200 is Nearmap (ASX:NEA), dropping 22.9 per cent to $1.87, followed by shares in Webjet (ASX:WEB) and Pilbara Minerals (ASX:PLS).

Commodities and the dollar

Gold is trading at US$1,579 an ounce.
Iron ore price is 7.3 per cent lower at US$86.84
Iron ore futures are pointing to a fall of 2.3 per cent.
One Australian dollar is buying 67.44US cents.

Source: Finance News Network