ASX recovers, Credit Corp soars 9%, AMP rises 7%: ASX up 1.1% at noon

The Australian sharemarket has rebounded from Monday’s sessions, rising firmly at the open. At noon, the S&P/ASX 200 is 1.1 per cent or 79.8 points higher at 7319.6. The SPI futures are pointing to a rise of 101 points.

All sectors are in the green, except utilities, down 0.4 per cent. Financials are adding the most points, up 1.7 per cent, followed by communication services, up 1.5 per cent, then technology, up 1.4 per cent.

In company news, debt buyer Credit Corp (ASX:CC) is up 9 per cent as the best-performing stock, after acquiring the assets of Radio Rentals from Thorn Group. Financial services provider AMP (ASX:AMP) is up 7 per cent after outlining its plans to demerge its private markets business in the first half of 2022.

The major banks are charging ahead, led ANZ (ASX:ANZ) up 2.7 per cent, while Westpac (ASX:WBC) is also 0.9 per cent despite being sued by ASIC for widespread allegations. 
 
Legal finance services provider Omni Bridgeway (ASX:OBL) is up 5.7 per cent and lithium miner Orocobre (ASX:ORE) surged 7.6 per cent. Both companies held their annual general meeting this morning. 

Travel stocks rebounded from yesterday as investors shook off Omicron fears around the globe. Flight Centre (ASX:FLT) is up 5.5 per cent and Qantas (ASX:QAN) is up 2.2 per cent. 

Local economic news

ANZ and Roy Morgan released the weekly consumer confidence index which dropped 1.4 points to 106.0 on the final weekend of November as a new Covid-19 variant known as the ‘Omicron variant’ emerged in southern Africa. Consumer confidence is now below the 2021 weekly average of 108.1 and now 1.5 points below the same week a year ago, November 28/29, 2020 (107.5).

Consumer confidence this week was down in Victoria, Queensland and WA, while increasing slightly in NSW and SA. This week’s small decrease was driven by Australian’s becoming less confident about the prospects for the economy over the next five years.

The Australian Bureau of Statistics released the balance of payments report along with building approvals and government finance figures.

Balance of payments report: The current account surplus, seasonally adjusted, rose $1,016 million to $23,886 million. The capital and financial account deficit fell $2,610 million to $21,835 million. Australia’s net IIP liability position was $860,149 million at 30 September 2021.

Building approvals: The seasonally adjusted estimate for total dwellings approved fell 12.9 billion in October. Private sector houses rose 4.3 per cent, while private sector dwellings excluding houses fell 37.5 per cent. The value of non-residential building approved fell 20.9 per cent.

Government finance figures: Taxation revenue fell -16.8 per cent to $142.6 billion. General government net operating balance fell -$47.6 billion to -$45.4 billion. General government borrowing was $52.5 billion total public demand is expected to contribute 0.7ppt to the quarterly change in GDP.

The Reserve Bank has scheduled the financial aggregates publication while the Reserve Bank Deputy Governor Guy Debelle is set to make an online speech at the ACI Australia conference.

Company news

Westpac (ASX:WBC) has reached agreement with Australia’s corporate watchdog to resolve six civil penalty proceedings filed against them, submitting to the court that combined penalties of $113 million to Westpac is appropriate.

Financial services provider AMP (ASX:AMP) says its on track to demerge its AMP Capital Private Markets business (PrivateMarketsCo) in the first half of 2022.

Credit Corp (ASX:CCP) has acquired the assets of Radio Rentals from financial services provider Thorn Group (ASX:TGA) for $60 million.

IPO

Biome Australia (ASX:BIO) has listed on the ASX today. Their shares issued at $0.20, started trading at $0.13 and are currently at $0.12.

Best and worst performers

The best-performing sector is Financials, up 1.7 per cent. The worst-performing sector is Utilities, down 0.4 per cent.

The best-performing stock in the S&P/ASX 200 is Credit Corp Group (ASX:CCP), trading 8.9 per cent higher at $32.91. It is followed by shares in Orocobre (ASX:ORE) and AMP (ASX:AMP).

The worst-performing stock in the S&P/ASX 200 is BlueScope Steel (ASX:BSL), trading 2.9 per cent lower at $19.74. It is followed by shares in Perseus Mining (ASX:PRU) and Bega Cheese (ASX:BGA).

Commodities and the dollar

Gold is trading at US$1785.22 an ounce.
Iron ore is 3.4 per cent higher at US$99.95 a ton.
Iron ore futures are pointing to a rise of 4.90 per cent.
One Australian dollar is buying 71.42 US cents.