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Highlights
- The benchmark index ASX 200 was up 1.01% to 7,255.60 points in the initial few minutes of trade
- Out of the 11 sectors of ASX, 10 were trading in the green zone today, with the Information Technology sector leading the gains
- AGL Energy has abandoned its plan to separate AGL Energy into AGL Australia and Accel Energy through a demerger
The Australian share market started this week’s trade on a positive note, following strong cues from Wall Street. The benchmark index ASX 200 gained over 1% to 7,255.60 points in the initial few minutes of trade. With this gain, the benchmark index managed to cross its 20-day moving average. The benchmark closed 1.08% higher at 7,182.7 points on Friday.
Meanwhile, the ASX All Ordinaries index also added nearly 1% to its gains today to trade near at 7,487 points.
At the time of drafting, ten of 11 sectors were trading in the green zone, with the Information Technology sector leading the gains followed by Materials and Health Care. It seems as if Friday’s over 3% gains on Nasdaq has boosted investors’ confidence to do some bottom fishing in the tech sector. Meanwhile, rise in iron ore prices seems to have pushed up the mining stocks.
The S&P/ASX 200 Materials (Sector) XMJ was up 1.778% at 17907.600 points, while the S&P/ASX 200 Information Technology (Sector) was up over 3%.
Except for the Utilities sector, which traded in red, all other sectors contributed to the gains made on ASX today.
Australia’s March quarter gross domestic product (GDP) data is expected to be released on Wednesday. The period was marked by heavy flooding and COVID-19 spread. On Tuesday, data on the first-quarter balance of payments, company profits and inventories, April building approvals, and private sector credit will likely be released.
All three US stock indexes made substantial gains on Friday. The Dow Jones Industrial Average rose 1.76% to 33,212.96 points, while the S&P 500 jumped 2.47% to 4,158.24. The NASDAQ Composite ended the session 3.33% higher at 12,131.13 points.
Market Action:
Coming to the top ASX 200 gainers, A2 Milk Company Limited (ASX:A2M) and Liontown Resources Limited (ASX:LTR) led the pack with 5.324% and 3.787% gains, respectively. On the flip side, AGL Energy Limited (ASX:AGL) and Appen Limited (ASX:APX) were the top losers, falling 3.834% and 2.294%, respectively.
Read More: RAC, CTE, ADO: ASX health stocks with massive returns in past 3 years
Newsmakers:
AGL Energy Limited (ASX:AGL):
Today the share price of ASX-listed electricity and gas generating company AGL Energy Limited will be in focus after the company has abandoned its plan to separate AGL Energy into AGL Australia and Accel Energy through a demerger.
Given the opposition from a small number of investors, including Grok Ventures, the company believes that the Demerger Proposal will not receive adequate support to meet the 75% approval threshold for a scheme of arrangement.
Meanwhile, the energy company has also announced the stepping down of its Chairman Peter Botten and Chief Executive Officer Graeme Hunt from their posts.
Gold Road Resources Limited (ASX:GOR):
The shares of ASX-listed Gold explorer Gold Road Resources Limited will be on investors’ watchlist after the company has announced an increased offer for all the outstanding ordinary shares of DGO. The new improved offer consideration is 2.25 Gold Road shares for every DGO Share outstanding.
As per today’s announcement, the company believes that its improved Offer is the best and final and will not be increased,
Bubs Australia Limited (ASX:BUB):
Shares of the ASX-listed dairy company Bubs Australia rocketed over 45 per cent today after it bagged an order to provide at least 1.25 million tins of baby formula to the U.S. to ease a nationwide shortage.
Bubs’ commitment to the Biden administration is to provide approximately 27.5 million feeding bottles of infant formula in the coming weeks and months.
Read More: Calima Energy (ASX:CE1) on high-growth path amid robust crude oil market
