Boral (ASX:BLD) announces buy-back offer after $1.33b US sale: ASX 0.4% higher at noon

01Apr

Boral (ASX:BLD) announces buy-back offer after $1.33b US sale: ASX 0.4% higher at noon

 

The Australian share market opened higher and lifted by 0.5 per cent in early trade, then faded towards noon. Technology and mining shares are leading the gains while Industrials, Energy, Consumer staples weighed on the market. Meanwhile, greater Brisbane lockdown is set to lift at noon with travel stocks in the red despite its improved performance yesterday.

S&P/ASX 200

The index is 25 points up or 0.4 per cent higher at 6,816. On the futures market the SPI is suggesting a rise of 20 points.

Local economic news

Australian Bureau of Statistics released figures today for February.

  • International trade: Australia's trade surplus fell to $7.53 billion in February from January's record high missing market estimates of $9.7 billion.
  • Job vacancies increased by 14 per cent between November 2020 and February 2021. Compared to February 2020, job openings are 27 per cent higher.
  • Retail trade fell 0.8 per month on month compared with the earlier figures of 1.1 per cent drop due to lockdowns in Victoria and Western Australia.
  • New loan commitments for housing fell 0.4 per cent. This is the first fall since May 2020. The value of new loans for owner occupied homes dropped by 1.8 per cent after soaring 10.9 per cent to record in January.

Broker moves

UBS rates BHP (ASX:BHP) as a neutral with a target price of $42. The downgrade from a buy is due to the risk in the iron ore price as Brazilian supply recovers and Chinese demand slows.The broker now considers the risk/reward is more balanced. UBS also envisages further headwinds from latent capacity, scrap and greenfield developments. Shares in BHP (ASX:BHP) are currently 0.6 per cent higher at $45.58.

Company news

Boral (ASX:BLD) has completed the sale of its 50 per cent stake in the USG Boral joint venture to Gebr Knauf KG for $1.33 billion dollars. The proceeds will be used to launch an on market buy- back offer. The company expects to report a profit on sale after tax of $450 million. In addition to the buy-back offer, the sale proceeds will be used to reduce their net debt from $1.9-$1.5 billion. Boral intends to buy 10 per cent of shares on issue over the next 12 months. Shares in Boral (ASX:BLD) are trading at 6.1 per cent higher at $5.83.

Best and worst performers

The best-performing sector is Information technology adding 1.9 per cent while the worst performing sector is Industrials shedding 0.8 per cent.

The best performing stock in the S&P/ASX 200 is Boral (ASX:BLD) rising 6.1 per cent to $5.83 followed by shares in AMP (ASX:AMP) and Megaport (ASX:MP1).

The worst performing stock in the S&P/ASX 200 is Webjet (ASX:WEB) dropping 5.2 per cent to $5.29 followed by shares in Computershare (ASX:CPU) and SkyCity Entertainment (ASX:SKC).

Commodities and the dollar

Gold is trading at US$1,707 an ounce.
Iron ore price fell 0.5 per cent to US$166.90.
Iron ore futures are pointing to a rise of 0.8 per cent.
One Australian dollar is buying 75.86 US cents. 
Copyright 2021 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

04May

Lynas Corporation (ASX:LYC) restarts plant: Aus shares 0.3% higher at noon

04 May 2020 - The Australian share market opened lower this morning following continued US-China tensions and is now trading 0.3 per cent higher at noon. Lynas Corporation (ASX:LYC) has restarted its Lynas Malaysia plant.

Read More
02Jul

Netflix helps push the NASDAQ higher: ASX set to open higher

02 Jul 2020 - Following a mixed session from US markets overnight, the ASX looks set to open higher this morning. Asian stocks saw modest gains after positive vaccine developments for coronavirus and better-than-expected manufacturing data. Hong Kong police made their first arrests since China’s national security law came into force giving Beijing greater control over the country. Gold is down and oil rose slightly. Kathmandu Holdings (ASX:KMD) provided a trading update this morning showing total Group sales for...

Read More
21Sep

Tech sell off continues on Wall Street: Local markets set for weak start

21 Sep 2020 - The local sharemarket is set for a weak start this morning following negative overseas leads on the back of rising concerns about the pace of the global economic recovery from COVID-19.

Read More
17May

Wall St rebounds as tech stocks jumped: ASX to open higher

17 May 2021 - The ASX is set to rise following Wall St closing its second straight session in the black. The week ended with a broad-based rally which followed a heavy sell-off led by technology shares as inflation fears outweighed the signs of a recovering economy. Beacon lighting (ASX:BLX) is set to acquire its fourth property in Sydney for $11.2 million as part of establishing a new subfund.

Read More
28Jul

Wall St snaps 5-day winning streak, China’s regulatory crackdown continues, Why Nine Entertainment is a buy: ASX to fall

28 Jul 2021 - Global stocks fell as worries on China’s regulatory crackdown continues. Investors await an outcome tomorrow from the Federal Reserve meeting. Coverage on Apple, Alphabet & Microsoft earnings. Why Nine Entertainment (ASX:NEC) is a buy. Virgin Money UK (ASX:VUK) records growth for Q3.

Read More
29Apr

S&P 500 closes flat, OPEC+ opts out of meeting: ASX to rise

28 Apr 21 - The ASX is to rise following another mixed session from Wall St. Raiz Invest (ASX:RZI) reports their funds under management grew by 14.6% to $694.3 million for the Q3 FY21. US Google parent company Alphabet report a 34% rise in revenue.

Read More
14Apr

Tech sector boosts the market: ASX closed 1.9% higher

14 Apr 2020 - It has been a mostly positive day of trade for the ASX after a small dip in early morning trade the local bourse managed to close 1.9% higher. As for the sectors today Infotech led the day and REITs the only sector to end the day lower. Centuria Industrial REIT (ASX:CIP) has completed a $130 million institutional placement.

Read More
15Aug

Wall St mixed, U.S inflation rose at a slower pace, Bumble jumps as Virgin Galatic falls, Why James Hardie is a buy: ASX poised to open higher

12 Aug 2021 - Major indexes around the globe continued its trend as investors' nerves eased on the lower-than-expected rise of the U.S consumer price index. M&A activity in Europe helped their climb. A review of ASX activity yesterday buoyed by big names. Why Citi upgrades James Hardie (ASX:JHX) as a buy.

Read More
10Jan

Black Friday sales lift retail turnover 0.9%: ASX tracking 0.6% higher at noon

10 Jan 2020 - The ASX rose at the open and managed to maintain momentum and is now tracking 0.6% higher at noon. Vocus Group (ASX:VOC) shares saw a rise today as did Domain Holdings (ASX:DHG). SeaLink Travel Group (ASX:SLK) reports significant damage has been sustained to the SeaLink owned Vivonne Bay Lodge on Kangaroo Island as a result of recent bush fires.

Read More
15May

Coca-Cola Amatil (ASX:CCL) appoints CFO: Aus shares 0.7% higher at noon

15 May 2020 - The Australian share market opened higher this morning and is now trading 0.7 per cent higher at noon. Coca-Cola Amatil (ASX:CCL) has appointed Greg Barnes as their Chief Financial Officer.

Read More