- The ASX 200 was trading 1.23% or 88.1 points to 7,086.8, the lowest level since May 2021.
- Equity investors’ risk aversion dominated global markets on Friday as stocks continued to slump on Wall Street and in Europe.
- Regis Resources has lowered its FY22 guidance amid a geotechnical incident at its Rosemont main pit.
The Australian share market opened lower on Monday, as technology stocks tumbled at the open, tracking a red closing by the NASDAQ 100 on Friday, while fears over rising inflation and policy tightening by the US Federal Reserve continued to jitter global equity markets. The ASX 200 was trading 1.23% or 88.1 points down to 7,086.8, the lowest level since May 2021.
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Equity investors’ risk aversion dominated global markets on Friday as stocks continued to slump on Wall Street and in Europe, oil prices retraced a bit from seven-year highs earlier in the week and bond prices witnessed a rise as investors fled to the relative safety of government debt.
Wall Street's main indices closed sharply lower on Friday as Netflix shares had taken a hit of 21.8% after a weak subscriber growth forecast. The last week turned out to be a gloomy one for US equities as the S&P 500 and the NASDAQ logged their biggest weekly percentage fall since the onset of the COVID-19 pandemic in March 2020.
On Friday, the Dow Jones Industrial Average plunged 1.3% to 34,265.38, while the S&P 500 was down 1.89% to 4,397.95. The NASDAQ Composite ended the session 2.72% to 13,768.92.
How has the market performed so far?
As of 11:00 AM AEDT, the ASX 200 bounced from the low made in the opening session and was currently trading at 7,149, still down 0.37%. The ASX All Ordinaries index fell 0.6% or 44.9 to 7,445.2. The A-VIX shot up by 5.63% to 17.59, above 29.96% over the last five trading sessions.
Coming to the top laggards, Regis Resources Limited’s (ASX:RRL) shares nosedived 12.61% to AU$1.835, followed by Novonix Limited (ASX:NVX), falling 6.79% to AU$8.23. On the flip side, stocks trying to keep the market from falling were Uniti Group Limited (ASX:UWL) and Corporate Travel Management Limited (ASX:CTD), both gaining 7.95% and 2.57%, respectively.
On the sectoral front, seven out of the 11 sectors were trading in the red zone. The IT pack is leading the fall with a 1.78% loss, followed by materials and energy sectors, both tumbling 1.61$% and 1%, respectively. The consumer staples sector is leading with an uptick of 0.77%.
- Australian Foundation Investment Co. Limited (ASX:AFI)
- The company has outperformed its benchmark in the six-month period ended 31 December 2021.
- The revenue from operating activities stood at AU$161.8 million, up AU$65.6 million or 68.1% from the previous corresponding period.
- The profit after tax jumped to AU$146 million, an increase of 73.5% over the previous corresponding period’s AU$84.1 million profit.
- Nib Group Limited (ASX:NHF)
- The company has postponed increasing health insurance premiums for its Australian Residents Health Insurance members until 1 September 2022.
- The company says it will ease some financial burden on its members during the COVID-19 period.
- Earlier, premiums were approved to be increased from 1 April 2022.
- Regis Resources Limited (ASX:RRL)
- Regis has lowered its FY22 guidance amid a geotechnical incident at its Rosemont main pit and other operational challenges.
- The management is now expecting 300,000 to 340,000 ounces of production from the Duketon operation, from earlier 340,000 to 380,000 ounces.
- The total production forecast is down to 420,000 to 475,000 ounces, from 60,000 to 515,000 ounces.
- Uniti Group Limited (ASX:UWL)
- The company has received interest of more than one party for its potential acquisition.
- However, the parties didn’t disclose further details like the timing, price and conditions of the potential acquisition.
- The company do not guarantee that any of the approaches will result in any substantive proposals emerging.
- Dusk Group Limited (ASX:DSK)
- Dusk’s 1H FY22 sales were down 12% to AU$80 million, compared to AU$90.9 million in 1H FY21.
- Inventory at the end 26 December 2021 increased to 19.6 million, over 18.7 million in 1H FY21.
- It reported net cash of AU$33 million at the end of the reported period.