ASX 200 jumps over 1% as investors take Omicron fears in stride

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ASX 200 jumps over 1% as investors take Omicron fears in stride

 ASX 200 jumps over 1% as investors take Omicron fears in stride
Image source: Imageflow,Shutterstock

Highlights

  • The benchmark index, ASX 200, was up 0.6% or 43.5 points to 7,283.4 in early trade.
  • Global stocks rallied, while safe-haven bonds lost ground on Monday.
  • The market breadth has been quite healthy with nine out of the 11 sectors trading in the green.

The Australian share market opened on a positive note on Tuesday after a knee-jerk reaction witnessed in the last two trading sessions. Investors are still evaluating the shock effect of the newly emerged variant of COVID-19. A recovery in iron ore prices has lifted mining stocks while tech companies also rallied as NASDAQ sharply recovered on Monday. The benchmark index, ASX 200, was up 0.6% or 43.5 points to 7,283.4 in early trade.

A trader with his laptop

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Investors took a liking towards beaten down stocks on Monday as they waited for more details to assess the severity of the new COVID-19 variant on the world economy, allowing oversold stocks and oil prices to rebound from lower levels.

Global stocks rallied, while safe-haven bonds lost ground as market participants hoped that the new “variant of concern” would not be as lethal as predicted earlier.

On Wall Street, the Dow Jones closed 0.68% higher at 35,135.95, while the S&P 500 was up 1.32% to 4,655.26. The NASDAQ Composite ended the session 1.88% higher at 15,782.84.

Read More: Three ASX shares investors are eying amid Omicron concerns

How has the market performed so far?

As of 11:00 AM AEDT, the ASX 200 gained further momentum and was trading 78.7 points or 1.09% up at 7,318.5. The ASX All Ordinaries index was also up 0.89% or 67.5 points to 7,630.

Top 5 ASX gainers and losers

Data Source: ASX Website (as of 30 November 2021, 11:00 AM AEDT)

Credit Corp Group Limited (ASX:CCP) was the top performer, gaining 7.32%, followed by Orocobre Limited (ASX:ORE) and Omni Bridgeway Limited (ASX:OBL), both gaining 6.34% and 5.57%, respectively. On the flip side, Netwealth Group Limited (ASX:NWL) and Preseus Mining Limited (ASX:PRU) were the top losers, shedding 2.48% and 2.05%, respectively.

Completely opposite to yesterday’s sentiments, the market breadth has been quite healthy with nine out of the 11 sectors trading in the green. The financial and IT sectors were trading over 1% each, while the mining sector also rebounded 0.86%. Utilities and Consumer Staples sectors were down 0.3% and 0.29%, respectively.           

Newsmakers

  1. Credit Corp Group Limited (ASX:CCP)
  • Credit Corp has acquired 100% stake in Radio Rentals for AU$60 million.
  • The total consideration will be funded from the existing cash reserves.
  • The transaction is expected to be completed in December 2021.
  1. GUD Holdings Limited (ASX:GUD)
  • The company has entered into an agreement to acquire AutoPacific Group
  • It will pay a total of AU$745 million for the acquisition and will ask equity investors to help with the funding.
  • AutoPacific is Australia’s leading supplier of towing, functional accessories and trailering products.
  1. AMP Limited (ASX:AMP)
  • The management expects demerger from AMP Capital Private Markets business in 1H CY22.
  • After demerger, both businesses will focus on respective market shares and growth opportunities.
  1. Westpac Banking Corp (ASX:WBC)
  • The ASIC had launched multiple legal cases against Westpac on widespread compliance failures.
  • The bank has agreed to pay AU$80 million in compensation.
  • One of the cases included, that the bank charged more than AU$10 million from customers who had died.
  1. Vection Technologies Limited (ASX:VR1)
  • The company has received firm commitments from institutional investors to raise AU$12 million.
  • The proceeds would be used to build capacity for growth.
  • The funds will further strengthen the balance sheet with around AU$20 million cash on hand.

Read More: Three ASX-listed real estate penny stocks on investors’ radar

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