ASX 200 opens strong; IT and Telecom lead gains

Image Source: © Irochka | Megapixl.com

Highlights:

  • ASX 200 benchmark index was strong today (11 August 2022), up 56.10 points at 10:40 AM AEST
  • In last five trading days, the index has gained 1.06%.
  • The market has been taking cues from the Wall Street that ended on a positive note on Wednesday.

The S&P/ASX200 opened higher and was 56.10 points or 0.80% up  to 7,048.80 points at 10:40 AM AEST on Thursday (11 August). The Australian stock market has been tracking the Wall Street that registered gains on Wednesday as inflation in the US slowed more than expected in the month of July thereby increasing the likelihood of Federal Reserve becoming less aggressive on interest rate hikes.

Key pointers from Market Open

  • The benchmark S&P/ASX200 index opened higher today.
  • The top performing stock in this index were Mesoblast Limited and Life360 Inc, up 10.11% and 9.26% respectively.
  • Over the last five days, the index has gained 1.06%, but is down 5.32% on year to date basis.
  • Nine out of eleven sectors were trading in green zone.
  • Information Technology and Telecommunications Services were 2.81% and 2.19% higher, followed by A-REIT and Consumer Discretionary at 10:40 AM AEST.
  • Utilities and Consumer Staples were trading in red territory. 

News Makers

  • GQG Partners (ASX:GQG) – The diversified financial firm has reported net inflows of US$6.3 billion for the half year to June 2022. The company has ended the period with US$86.7 billion in funds under management, up 2.3% pcp. Also, the net revenue rose 21.3% to US$222.7 million.
  • Viva Leisure Limited (ASX:VVA) – The health club operating firm expects its second half revenue to exceed previous guidance of AU$54-AU$56 million. Also, June 2022 EBITDA margin is likely to surpass 20%.
  • Mirvac Group (ASX:MGR) – The real estate giant has reported that its revenue has gained to AU$2.8 billion in FY2022. Its operating profit jumped 8% to AU$596 million.
  • Telstra Corporation Ltd (ASX:TLS) – The telecommunication services firm shared that its profit has dropped 4.6% to AU$1.8 billion in FY2022. Revenue fell 1.3% to AU$21.3 billion and total income fell 4.7%.  

Global equity Indices

Wall Street witnessed bullish sentiments during Wednesday trading session. Considered as a measure for inflation, the headline US Consumer Price Index, rose 8.5% for July and was flat for June month against the expected 8.7% and 0.2% respectively. Also, core inflation witnessed a smaller-than-expected rise.

The Federal Reserve will be looking at the report along with the other significant economic data before the September meeting. It is considered now that the Fed might go a little slow on raising the interest rates in September.

Meanwhile, the S&P 500 went up  2.13%  to close at 4,210.24; the Nasdaq Composite gained 2.89% to end at 12,854.81; the Dow Jones Industrial Average gained 1.63% to 33,309.51.

Commodities:

As of 10 August, 20:26 PM AEST, Crude Oil WTI was quoted at US$91.41/bbl while Brent was at US$96.98/bbl.

Gold was at US$1,805.75 an ounce as of  10 August, 20:27 PM AEST.

 


 


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