Markets Live: ASX lifts through afternoon on banks

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2:16pm

The corporate regulator is investigating Commonwealth Bank's mis-selling of consumer credit insurance, which its chairman James Shipton said has been a systemic issue involving 11 institutions.

The Australian Securities and Investments Commission also confirmed it is conducting a criminal investigation into ClearView for breaching anti-hawking laws, after it admitted to the inquiry in September it had been selling low quality life insurance policies to poor people.

Mr Shipton told the royal commission on Friday that it was a "mistake" not to launch an investigation into CBA's selling of the often-worthless insurance products connected to credit cards and personal loans earlier than October this year.

He reiterated that an investigation into National Australia Bank for its fraudulent introducer program should also have been launched more quickly.

No enforcement proceedings have yet been initiated for either matter.

James Eyers has the full story here.

2:06pm

Australian shares are trading firmly higher through the afternoon and the market is within 10 points of wiping the losses at the start of the week.

The S&P/ASX 200 Index is up 29.3 points, or 0.5 per cent, at 5720.6.

The major banks are all trading firmly higher through the afternoon, followed by Woolworths and Wesfarmers.

Costa Group is up 4.6 per cent, ARB Corp is up 4.4 per cent and Sigma Healthcare is up 4.1 per cent.

CSL is down 1.4 per cent as is Telstra, with both stocks weighing the market. BHP Group is also lower.

Technology One shares are 7.6 per cent lower, Automotive Holdings is down 7.4 per cent and CYBG is down 4.7 per cent.

1:36pm

The sirens finally – finally – appear to be wailing for Australia's tough cop on the corporate beat.

The chairman of the Australian Securities and Investment Commission, James Shipton, revealed to the royal commission on Friday morning that he has told his squad of crime fighters that they need a good reason not to launch legal action when a financial institution reports a breach.

And when was this sweeping show of strength made? Well, two or three weeks ago.

The bewilderment of senior counsel Rowena Orr was obvious and infectious.

Chanticleer has the full piece here.

12:51pm

The corporate regulator is allowing consultancy firms Deloitte, EY and PwC to police its enforcement regime for the big banks while they are paid millions for other consulting work, raising conflict concerns.

The dual role raises questions about the ability of the consultants to be truly independent when there is a larger, and ongoing, commercial relationship with the client, a problem that has been raised repeatedly by the banking royal commission over "independent reports" produced by Clayton Utzand EY.

The Australian Securities and Investments Commission, whose chairman James Shipton was accused of being too cosy with the banks on Thursday at the royal commission, was slammed in an interim report by Commissioner Kenneth Hayne for failing to take legal action against corporate wrongdoers.

The regulator's preference for "negotiated outcomes", often hard fought over years by the banks, meant misconduct often "went unpunished", Commissioner Hayne warned.

Edmund Tadros has the full story here.

12:28pm

The $78 million takeover bid for The Reject Shop is opportunistic and undervalues the value of the discount retail chain, according to its chairman.

William Stevens told investors on Thursday to reject the on-market bid launched by Raphael Geminder, the billionaire founder of the packaging giant Pact Group.

At $2.70 a share, the takeover bid is a 19 per cent premium to Reject Shop's one-month average price. However it's shares traded as high as $8.35 earlier this year, and have fallen sharply after an slump in sales and an earnings downgrade.

"The offer is opportunistic and undervalues the value of your shares based on the historical performance of the company and its future prospects," Mr Stevens said.

Patrick Hatch has the full story here.

11:59am

Australian shares are trading slightly higher at midday following a small rally through the morning.

The S&P/ASX 200 Index is trading 8.5 points, or 0.2 per cent, higher at 5,699.8.

ANZ is leading the market with a 1.4 per cent advance, Woolworths is up 1.8 per cent and Commonwealth Bank has lifted 0.6 per cent.

Costa Group has advanced 6.9 per cent, ARB Corp is up 5.2 per cent and Super Retail Group is trading 4 per cent higher.

CSL is down 1.4 per cent and weighing the market, BHP Billiton is down 0.9 per cent and Telstra Corp is 1.7 per cent.

Automotive Holdings Group is down 6.6 per cent, Technology One is down 6.3 per cent and CYBG is down 6.3 per cent also.

11:45am

Iron ore miner Fortescue Metals Group has partnered with the CSIRO to develop new hydrogen fuel technologies.

Fortescue will invest $19 million over a five-year period into research at the CSIRO's Brisbane laboratories.

"We are at the beginning of an energy revolution and Fortescue intends to be at the forefront of this once-in-a- generation opportunity," Fortescue chairman Andrew Forrest said.

Fortescue Metals chief executive Elizabeth Gaines said the hydrogen investment opens up new opportunities for the business and helps cut operational costs.

Cole Latimer has the full story here.

11:16am

Mining giant BHP says it will fight an unprecedented English lawsuit filed by hundreds of thousands of Brazilians for multi-billion pound damages over Brazil's worst environmental disaster.

SPG Law, a British offshoot of a US litigator, represents 240,000 individuals in Brazil, 24 municipal governments, a Roman Catholic Archdiocese and members of the Krenak indigenous community, and has filed three legal claims for unlimited damages over the failure of the Fundao dam in 2015.

It looks set to be the largest group action heard in England.

London and Australian-listed BHP, the world's largest mining company by market value, said it had received correspondence from the law firm but also noted it had so far committed $US780 million ($1.1 billion) to the Renova Foundation, an entity created by the miner and its partners to manage reparations and repairs.

Read the full story here.

11:01am

Brickworks has acquired American brick manufacturer Glen-Gery in a deal worth $151 million ($US110 million), expanding its footprint into the United States.

Glen-Gery, based in central Pennsylvania, is a wholly owned subsidiary of Ibstock and the fourth-largest brick manufacturer in the United States.

"We believe the transaction provides an ideal entry into the US market" with Glen-Gery leading the market in the country's northeast, buoyed by its "reputation for premium products and high exposure to the architectural market," managing director Lindsay Partridge said in a statement to the Australian stock exchange.

Read the full story here.

10:38am

Cabcharge is getting some attention from prominent members of the funds management community, with Geoff Wilson and Ben Griffiths both warming to the unloved stock.

The timing is fortuitous, with Cabcharge's annual general meeting taking place on Thursday and the firm revealing an 11.6 per cent jump in revenue for the September quarter compared with a year ago.

Cabcharge, which will change its name to A2B, climbed 2.4 per cent to $2.16 on Thursday to bring price gains for its shares to almost 10 per cent in just over a week.

The stock remains well off its all-time high of $13.27, which it hit in May 2007, and continues to hover near all-time lows of $1.66.

But several influential investors believe there's more upside ahead for the stock.

Sarah Turner has the full story here.

Markets Live: ASX lifts through afternoon on banks

Markets Live: ASX lifts through afternoon on banks

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