Shares in Australian Mines are down 15.4 per cent to 2.2 cents after it announced a share purchase plan to raise up to $10 million this morning. An initial $5 million will be offered with the potential to raise a further $5 million from from sophisticated investors. At current prices this will add about 455 million shares to the 3 billion shares already on issue.

The funds will be used to advance the Sconi cobalt-nickel-scandium project in North Queensland and for "general working capital". Shareholders can purchase between $1,000 and $15,000 of new shares at a 20 per cent discount to the average price in the five trading days before 15 July. Patersons Securities is the lead manager and underwriter.

As we head into lunch time the S&P/ASX 200 is softening and has dropped from a high of 6587 points just before 11am down to 6560 points. It is now 0.2 per cent higher than yesterday's close.

The banks are behind the the fall with NAB falling from $27.34 at 10.30am to $27.07 now. Commonwealth Bank has fallen from $80.95 at the open to $80.37 now, which is 0.7 per cent below yesterday's closing price.

And ANZ Bank is down 1 per cent to $28.36 after opening higher at $28.75.

The declines come after the banking regulator confirmed it will beef up capital requirements for investor and interest-only home loans.

Iron ore miners are doing very well today thanks to a 5 per cent increase in the price of ore overnight to $US106.6 a tonne. BHP is up 2.8 per cent to $39.77 and has added 11.8 points to the market. Rio Tinto is up 2.3 per cent to $102.84, and Fortescue is up 4.6 per cent to $8.47.

Macquarie Wealth Management's team published a note this morning pointing out there is just three weeks left in the current financial year with high ore price leading to "potential financial outperformance versus consensus".

"Prices should be sustained in the near term as China port inventory dip below 115 megatonne and the 30 days of consumption, which is a critical level as it represents the shipping turnaround time between China and Australia".

The Macquarie analysts scrutinised shipping data and found volumes are strong.

The banking regulator is sticking with a plan that will force lenders to hold more capital against riskier mortgages to property investors or customers with interest-only loans, banking reporter Clancy Yeates reports.

The Australian Prudential Regulation Authority (APRA) confirmed it would implement the key parts of February 2018 proposals to beef up capital requirements for investor and interest only loans. The changes, to take effect in 2022, will not require banks to raise more capital overall, APRA said. But they will generally mean that banks with higher exposure to property investor loans and interest-only loan must hold a higher amount of capital than those focused on owner-occupiers who are paying principal and interest.

APRA chair Wayne Byres said the changes were aimed at making the banking system "unquestionably strong," as recommended by the Murray inquiry, and targeting the banks' "structural concentration" in mortgages.

More to come

The US Masters Residential Property Fund will start selling off property to close the gap between the funds net tangible assets and its share price. URF shares are trading at 96.5 cents compared to an average of $1.78 over the past five years.

The fund's responsible entity, Walsh & Company, has instructed the investment manager to start selling properties in New York to pay back URFHB and URFHC Notes "as well as actively considering appropriate capital management strategies to maximise returns for unitholders".

"It is an appropriate time to commence this process as the key macroeconomic drivers that formed part of the initial investment thesis, being appreciating US housing values and US dollar appreciation, have come to fruition, and the construction pipeline for the renovation of Fund properties is nearing completion," US Masters tells the market today.

Holders of URFHB Notes will receive at least $33 per note by 30 September and the distribution for the fund's ordinary units for the period ending 30 June will be reduced to 1 cent per unit.

"Whilst the reduction in the distribution to ordinary unitholders is disappointing, it is a necessary step in accelerating the repayment of the Notes and the aim of the program to reduce the fund's trading discount to net tangible assets".

Shares in Afterpay Touch have not been at all damaged by news its founders are offloading $100 million worth of shares. The stock is up 9 per cent to $26.35. The all-time high for Afterpay is $28.46, reached in early May.

Yesterday Afterpay raised $317.2 million from institutional investors paying $23 per share. The floor price was $21.75 per share and the eventual price was "at the top end of the placement price range". The new shares will start trading on 17 June.

"We are pleased by the strong investor support shown in the capital raising for the Afterpay business and our global growth strategy as outlined in our previously announced mid-term plan," director Elana Rubin tells the market today. "The placement was oversubscribed, and we are also pleased to welcome several new high-quality institutions onto our register".

Meanwhile retail shareholders who owned shares on 7 June can buy up to $15,000 worth of shares for $23 apiece to raise a further $30 million. It will not be underwritten and Afterpay may decide to scale back applications.

If you ever visit the Sydney Cricket Ground (SCG) you may be interested to know it has signed a five year contract with listed company Skyfii, which is currently trading at 16 cents. This has been its average price over the past 12 months.

Skyfii's IO Connect WiFi software tracks visitor movements and smartphone activity. Or as they put it "...provide the SCG with a feature rich captive portal solution to engage patrons who utilise the available guest WiFi network". In particular, they expect the tracking to help understand how people move through the stadium in different weather conditions.

Skyfii has already deployed this software at Somerset County Cricket Club in the United Kingdom.

Platinum Asset Management chief executive Andrew Clifford is as conservatively positioned as he was when the world was on the brink of a global financial crisis in 2007, the Financial Review reports today. Although Mr Clifford would not go so far as to say Platinum saw the GFC coming, he said the investment house's traditionally cautious, patient approach to investing had placed it in good stead.

"We were concerned about the world and pretty conservatively positioned and we were pretty spot on," he said.

As talks between the US and China, and between the US and Mexico, began to break down last month, Mr Clifford said Platinum had once again "dramatically" brought down its net invested position by about 20 per cent to about 55 per cent. He said the fund's cautious positioning might be temporary, "depending on how some of these things unfold. Certainty we're very cautiously positioned."

Read the full story by Liz Main here

The Westpac-Melbourne Institute Index of Consumer Sentiment softened by 0.6 per cent in June to 100.7, down from 101.3. A measure above 100 indicates strong sentiment with the index reaching over 120 during the good times.

"This is a disappointing result given the cut in official interest rates this month and suggests deepening concerns about the economy have outweighed the initial boost from lower rates," Westpac senior economist Matthew Hassan wrote in a note to clients this morning. The biggest decline was in "economic conditions next 12 months", which dropped from 104.2 to 99.3.

The election result produced a strong rise in sentiment among Coalition voters, but a sharp decline in sentiment among Labor voters. Also, renters' sentiment declined, while home owners' increased after the election. The House Price Expectation sub-index swung from 89.4 to 109.7, the highest level since August 2018. Westpac is expecting two more cuts to the target cash rate this year to see it at 0.75 per cent by November.

Wesfarmers will spend $230 million buying online shopping platform Catch Group Holdings, it has just told the market.

Catch Group will become an independent business unit managed by Ian Bailey, managing director of Kmart Group, and will accelerate "onmi-channel initiatives" across Kmart and Target.

"This acquisition represents and opportunity to accelerate Wesfarmers and Kmart Group's digital and e-commerce capabilities whilst continuing to invest in the unique customer and supplier proposition provided by Catch Group," managing director Rob Scott told the market this morning.