TPG Telecom (ASX:TPM) spin-off Tuas set to list: Aus shares to open higher

Following positive leads from US markets, the Australian share market looks set to open higher. Chief Medical Officer Brendan Murphy is leaving the post today to become Secretary of the Health Department next month. He says that while he is growing increasingly confident that a covid-19 vaccine will eventually be developed, he does not believe international borders will be reopened until that occurs. The national cabinet are meeting today and will discuss strategies for containing localised covid-19 outbreaks, a timetable for reopening Australia’s arts and entertainment venues, and the return of international students.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 1.2 per cent to 25,746 the S&P 500 added 1.1 per cent to 3084 and the NASDAQ closed 1.1 per cent higher at 10,017.

European markets closed higher, London’s FTSE added 0.4 per cent, Paris gained almost 1 per cent and Frankfurt closed 0.7 per cent higher.

To Asian markets, Tokyo’s Nikkei fell 1.2 per cent, while Hong Kong’s Hang Seng and China’s Shanghai Composite were closed.

Taking all of this into equation, the SPI futures are pointing to a 1.2 per cent gain.
Yesterday, the Australian share market closed 2.5 per cent lower at 5818.

Company news

S&P Dow Jones Indices announced that TPG Telecom (ASX:TPM) will spin-off 1 share of Tuas (ASX:TUA) for every 2 TPG Telecom shares held. This is of course subject to the final court approval of the scheme of arrangement under which TPG Telecom will spin-off Tuas. Tuas will be added to the S&P/ASX 200 Index after the close of trading on 29June 2020 at a zero price. The post-merger TPG Telecom ASX:TPG) will also remain in the S&P/ASX 200 Index following its $15 billion merger with Vodafone Hutchison Australia which will make it the third largest telecom in Australia. Shares in TPG Telecom (ASX:TPM) closed 2.4 per cent lower at $8.80 yesterday.

Currencies

One Australian Dollar at 7:00 AM was buying 68.88 US cents, 55.48 Pence Sterling, 73.82 Yen and 61.41 Euro cents.

Commodities

Iron Ore was flat at US$103.34.
Iron Ore futures suggest a 2.1 per cent gain.
Gold has fallen $1.10 to US$1774 an ounce.
Silver was up 24 cents to US$18.05 an ounce.
Oil has gained $1.05 to US$39.06 a barrel.

Source: Finance News Network