ASX 200 climbs higher, turns positive for the week

Summary

  • The AS 200 has continued its uptrend from the last session, opening 0.3% or 22 points higher.
  • Wall Street extended gains on Wednesday, snapping a long losing streak.
  • The market breadth has been extremely positive, as 10 out of 11 sectors are climbing higher today.

Global equity markets continued their upward momentum on Wednesday and US Treasury yields climbed higher due to cheering corporate earnings. Markets have recovered sharply from the sell-off earlier in the week on the back of rising COVID-19 cases, even as investors looked for safety in the falling market.

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On Thursday, the Australian market has continued its uptrend from the last session. The ASX 200 has opened 0.3% or 22 points up, surpassing its 20-moving average on the daily chart. Over the last five days, the index has virtually remained unchanged.

Wall Street extended gains on Wednesday, snapping a long losing streak. The Dow Jones was up 0.83%, to 34,798.01, while the broader market index, the S&P 500, was up 0.82% to 4,358.98. The NASDAQ Composite climbed higher by 0.92%, to 14,631.95.

Read More: Which are the 10 largest economies of the world?

How has the market performed so far?

As of 10:30 AM AEST, the benchmark index, the ASX 200, has climbed further, trading 0.84% up, to 7,370. The ASX All Ordinaries Index is trading 0.8% up, at 7,641.3. The volatility index, A-VIX has further fallen by 4.8% to 11.65 and is down by 35.15% over the last one year.

                       

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The market breadth has also been extremely positive, as 10 out of 11 sectors are climbing higher today. Materials sector is leading the market with a 1.59% gain, followed by Utilities with a 0.74% gain. The only losing sector so far is the Real Estate sector (A-REIT), losing a mere 0.1%.

Stocks that are supporting the ASX 200 are Iluka resources Limited (ASX:ILU) and Orocobre Limited (ASX:ORE), gaining 6.9% and 4.74%, respectively.

There are also some stock weighing down on the index, with Altium Limited (ASX:ALU) losing 1.43% and Perseus Mining Limited (ASX:PRU) falling 0.97% in the early trade.

Read More: How these resource stocks fared in June ending quarter?

Newsmaker

BNPL giant, Zip Co Limited (ASX:Z1P) more than doubled its revenue to AU$129.9 million in the quarter ended June 2021. The total transaction value also shot up by 116% to AU$1.8 billion. The company’s US business now generates more than half of the total revenue.

Megaport Limited (ASX:MP1) narrowed it losses in the June 2021 quarter to AU$202K, clocking 16% higher sales at AU$22.7 million. There was a marginal rise of 2% in the average revenue per port as well.

Santos Limited (ASX:STO) clocked quarterly sales of US$1.1 billion in the June 2021 quarter, totaling to a record 1H FY21 sales of over US$2 billion. The company’s low-cost model keeps business on track to achieve a free cashflow breakeven oil price of US$25 a barrel.

Image Source: Copyright © 2021 Kalkine Media

Northern Star Resources Limited (ASX:NST) has successfully achieved its FY21 full-year guidance for gold sales. During the last quarter of FY21, the company’s 444,012 ounces of gold, totaling to sales of 1.6 million ounces in FY21, in line with the guidance of 1.5 million–1.7 million. The company has also appointed a new MD, Stuart Tonkin.

Evolution Mining Limited (ASX:EVN) has entered into an agreement to acquire assets of northern Star Resources for a total consideration of AU$400 million. The acquisition will be fully funded by institutional placement accompanied by share purchase plan.

Another gold miner, Newcrest Mining Limited (ASX:NCM) has also reported its quarterly production numbers. The company reported copper production of 38K tonnes and gold production of 542K ounces.  It has set a goal of net-zero carbon emission to be achieved by 2050.

Read More: Breakout results: Spacetalk clocks record Q4 and FY21 revenue

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