Orocobre (ASX:ORE) shares on the decline despite new deals: ASX tracking 0.4% lower at noon

The Australian share market fell at the open and has failed to gather momentum throughout the morning so far is now tracking 0.4 per cent lower at noon. Orocobre (ASX:ORE) shares are on the decline – this comes as they reported yesterday they have signed two new contracts for supply of battery grade lithium carbonate to top tier Chinese cathode manufacturers. They named the manufacturers today as B&M Science and Technology and XTC New Energy Materials respectively. Meanwhile, Pendal Group (ASX:PDL) and Fortescue Metals (ASX:FMG).have seen their shares rise. The best performing sector is Consumer Staples. The worst performing sector is Information Technology.

The S&P/ASX 200 index is 26 points down at 7,054. On the futures market the SPI is 27 points lower.

Broker moves

UBS has upgraded Dexus (ASX:DXS) to a Buy from a Neutral. After a prolonged period of above-trend rental growth in Sydney and Melbourne office markets, the broker anticipates a moderation in 2020/21, with net effective rental growth of 1-3 per cent per annum. Importantly, the broker envisages ongoing capitalisation rate compression, strong cash flow from annual escalations and positive leasing spreads. Target is raised to $13.60 from $12.90. Shares in Dexus (ASX:DXS) is 0.6 per cent higher at $12.54.

Company news

Resolute Mining (ASX:RSG) has agreed with Taurus Funds Management to repay all amounts outstanding under the US$130 million Toro Gold acquisition finance facility before the due date f of 31 January 2020. The repayment will be funded by an equity raising to raise up to approximately A$196 million. Tranche 1 Institutional Placement Shares will be issued at a price of $1.10 per share. The miner is raising $146 million through an institutional placement, $25 million through a placement to largest shareholder ICM and a share purchase plan to raise up to $25 million. Shares in Resolute Mining (ASX:RSG) last traded at $1.18.

Best and worst performers

The best-performing sector is Consumer Staples, adding 0.9 per cent, while the worst performing sector is Information Technology at 1.4 per cent.

The best performing stock in the S&P/ASX 200 is Pendal Group (ASX:PDL) rising 2.4 per cent to $8.64, followed by shares in Silver Lake Resources (ASX:SLR) and Fortescue Metals (ASX:FMG).

The worst performing stock in the S&P/ASX 200 is Orocobre (ASX:ORE), dropping 4.3 per cent to $3.56, followed by shares in Pilbara Minerals (ASX:PLS) and Technology One (ASX:TNE).

Commodities and the dollar

Gold is trading at US$1,562 an ounce.
Iron ore price is 0.9 per cent lower at US$96.70
Iron ore futures are pointing to a fall of 0.2 per cent.
One Australian dollar is buying 68.71US cents.

Source: Finance News Network