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Highlights
- ASX 200 begins the week on a strong note, rising 1.45% on Monday, lea by a broader market rally.
- While Energy and Utilities trace back, IT, healthcare and materials race ahead.
- Dairy companies like Bubs Australia and The A2 Milk company grabbed investors’ attention.
ASX200 has commenced the new week on an encouraging note, gaining 1.45% to close at 7,286.60 points on Monday. With today’s gains, the index has crossed its 125-day moving average (MVA). In the last week the index was up 1.93%, however, it is still down by 2.12% on a year-to-date basis.
How were the sectors and indices moving?
Following strong leads from Wall Street, the equities on ASX saw a broad-based rally. Ten out of the 11 sectors on the ASX ended with gains today. While the best performing sector, Information Technology, gained about 4.59%, materials and healthcare sectors were also up about 2.20% and 1.85%, respectively.
The consumer staple stocks also reversed last week’s losses, closing Monday’s trade 1.58% higher. Energy and Utilities however, remained in the red zone. AGL’s failed attempt to demerge its coal power plants from the rest of its business seems to have impacted the Utilities index.
Volatility indicator- A-VIX edged down 3.05% whereas the All-ordinaries index gained 1.48%. Large cap representative ASX 50 index (XFL) rose 1.339%. The midcap index ASX Midcap 50 (XMD) gained 1.803% and the ASX Small Ordinaries index (XSO) were up 1.834%.
Top gainers and losers of the day
Image Source © 2022 Kalkine Media ®, data source- ASX website
Top gainer ZIP Co Limited’s share price zoomed almost 14% as the buy now pay later company rallied along the tech sector index. The A2 Milk Co Limited was also among the top five gainers of the day. On the flipside Appen Limited continued to add-on to the losses made on Friday after its Canadian suitor backed out its offer.
Stocks in news
- Bubs Australia (ASX:BUB) shares soared over 40% after signing a deal to supply over a million tons of infant formula to help US deal with its nationwide shortage. Another dairy company that turned heads was The A2 Milk Company.
- Liontown Resources (ASX:LTR) gained attention after it revealed its agreement to extend the termination date of the binding offtake agreement with EV manufacturer Tesla till 6 June 2022.
- Among the tech sector’s prominent gainers were Block Inc. (ASX:SQ2), Zip Co Limited (ASX:ZIP) and Novonix (ASX:NVX).
- AGL Energy (ASX:AGL) shares fell on news of its CEO and Chairman’s resignation and its demerger plans getting scrapped off.
More from ASX- How is Elders’ (ASX:ELD) share price moving ex-dividend?
On the Global markets front
The Chinese CSI 300 index rallied based on the eased Covid restrictions around key Chinese cities. Consumer stocks zoomed up as strict lockdowns got over. Even Hong Kong’s Hang Seng index closed higher as inbound Covid testing rules eased a bit. The Japanese Nikkei and Korean KOSPI also jumped higher. While the European Union (EU) could not agree on a revised package of sanctions on Russia, in US all eyes are now on Fed’s report on regional economic conditions.
Some global market influencing data sets that are likely to be released during the week include, the US May employment report and non-farm payrolls. The Eurozone’s consumer price index number might also be released alongside China’s manufacturing and non-manufacturing purchasing managers indices.
On the commodities front,
The Russian invasion of Ukraine remains the top-most influencing dynamic. The EU’s negotiations on an outright ban on Russian crude is driving prices higher. Oil prices are also up with expectations of a stronger demand from the US driving season under way. Prices of both Brent Crude and US-WTI were higher on Monday.
On the metals front, the yellow metal was shining bright on Monday in response to a weaker dollar. Other precious metals Silver, Palladium and Platinum were also registering gains. Prices of Iron and Copper were also in green.
Related read-Oil rises on peak US demand amid Memorial Day weekend
