ASX 200 is having a rough start of the week, losing over 1.2%

Summary

  • The ASX 200 is trading at the low of the day, at 7,253.3, losing 1.28%, as of 10:30 AM AEST.
  • On Friday, Wall Street had a gloomy session, with all three major indices closing with a deep cut.
  • The A-VIX, which measures the volatility of ASX 200, has risen over 14.8% to 13.09.

On Monday, the Australian benchmark index, the ASX 200, took a sharp reversal from Friday’s closing and is looking to trade weak for the day. The index opened lower and is currently trading 89 points or 1.28% down, at 7,253.3. The index is down over 0.82% in the last five days, despite that it is still holding its ground near its 52-week high.

Image Source: Copyright © 2021 Kalkine Media

Investors have been switching to safety mode ahead of an action-packed week for some major economic data. On Tuesday, RBA would be releasing minutes from July’s policy meeting, while on Wednesday, Australian June retail sales data would be out. On Thursday, the trade and quarterly business confidence data would be made public.

On Friday, Wall Street had a gloomy session, with all three major indices closing with a deep cut. The Dow Jones ended the session 0.86% down, at 34687.86, while the S&P 500 was down by 0.75%, to 4,327.15. the NASDAQ Composite lost 0.8%, closing the session at 14,427.24.

Read More: ASX 200: What to expect from market after weak Wall Street closing?

How has the market performed so far?

As of 10:30 AM AEST, there have been a sea of red numbers on the screen. The ASX 200 is trading at the low of the day, at 7,253.3, losing 1.28%, while the ASX All Ordinaries Index is trading 1.12% down, at 7,545.6. The top ASX 200 laggards at the opening are Altium Limited (ASX:ALU) and Evolution Mining Limited (ASX:EVN), falling 10.5% and 5%, respectively. 

The market breadth has been extremely negative, with 10 out of 11 sectors trading in red so far. The worst performing sector is Materials and Information Technology, dropping 1.72% and 1.44%, respectively. Only Healthcare sector is going against the grain with a gain of 0.18%.

Image Source: ASX Website (as of 10:30 AM AEST)

On the gaining front, Deterra Royalties Limited (ASX:DRR) and Polynovo Limited (ASX:PNV) have been given investors some relief with a 2.5% and 2.43% gain, respectively.  

The selling rout has also shot due to the volatility of the ASX 200. The A-VIX, which measures the volatility of ASX 200, has risen over 14.8% to 13.09. Over the last five days, the A-VIX has gained 5.68%.

Commodity sector update

                     

The Early Trades || ASX 200 Crashes; Inflation Anxiety And Virus Concerns Weigh Heavily

 

Gold had fallen 0.8% on Friday on the back of a stronger US dollar. Gold miners’ shares have also taken a hit. Shares such as Newcrest Mining Limited (ASX:NCM), Northern Star Resources Limited (ASX:NST), and De Grey Mining Limited (ASX:DEG) are all down by 1.3%, 1.68% and 2.8%, respectively.

Read More: Top ten fully franked gold stocks with high dividend yield

Crude oil prices are also witnessing a cooldown after a heated rally since last few months. Currently, Brent crude oil is down 0.6% to US$70.98, heading for a 4-day losing streak. Energy shares such as Viva Energy Limited (ASX:VEA), Santos Limited (ASX:STO) and Woodside Petroleum Limited (ASX:WPL), all are down by 0.95%, 2.14% and 1.23%, respectively.

Newsmakers

Stockland Limited (ASX:SGP) said that it had entered into binding agreements to acquire Queensland-based Halcyon Group’s land lease communities business for AU$620 million.

Following media reports, Telstra Corporation Limited (ASX:TLS) has confirmed that it was in discussions to buy the Pacific operations of telecom company Digicel Group, with the support of the Australian government, which would fund the majority of the deal amount.

Ioneer Limited (ASX:INR) announced that it had been issued a water pollution control permit for its Rhyolite Ridge lithium-boron project in Nevada.



 Image Source: Copyright © 2021 Kalkine Media

Perenti Global Limited (ASX:PRN) said that AMAX, a joint venture between Perenti’s surface mining business in Africa, African Mining Services and leading Ghanaian mining services company, MAXMASS, has been awarded a new nearly AU$470 million, five-year contract at AngloGold Ashanti’s Iduapriem gold mine.

Cooper Energy Limited (ASX:COE) said that its production for the year surged by 69%, while sales climbed by 94%. The revenue rose by 69%.

Read More: Can APEC meeting led by New Zealand lead to a meaningful outcome?

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK