ASX 200 opens flat; IT and Financial sectors mark marginal gains

Highlights:

• ASX 200 stocks opened a little lower today, however, the benchmark index recovered a bit and started trading flat after a while.
• The market has been taking cues from the Wall Street that ended lower in its last session though the tech stocks posted significant gains on the index.

The S&P/ASX200 opened a tad lower today (July 21), dropping just 7.70 points or 0.11% to 6,751.50 points however, at 10:34 AM AEST, the benchmark index was up 1.40 points to 6,760.60.

Key pointers from Market Open

• The benchmark index was rather flat during the opening hour, at 6,760.60 points at 10:34 AM.
• The top performing stocks in this index were Kelsian Group Limited and Pointsbet Holdings Limited, up 13.97% and 4.49% respectively.
• The bottom performing stocks featured Charter Hall, down 2.896% and Paladin Energy, down 2.190%
• Over the last five days, the index has gained 1.65%, but is down 9.19% on year-to-date basis.
• 6 of 11 sectors were higher today.
• Information Technology and Financial sectors marked marginal gains and were up 0.17% and 0.15% respectively. Consumer Staples sector was up 0.22% at the same time.
• Utilities was the worst performing sector, down 0.55%.

News Makers

• Zip Co Limited (ASX:ZIP) – The diversified financials stock was spotted trading a tad higher at AU$0.670 apiece at 10:36 AM AEST. The company has marked growth across the business though its revenue has declined.
• Australia and New Zealand Banking Group Limited (ASX:ANZ) - ANZ has completed AU$1.7 billion of institutional raising by issuing 89 million new shares. This is a part of AU$3.5 billion raising to acquire Suncorp Bank. The stock was trading 0.023% up at AU$21.645 apiece at 10:48 AM AEST.
• Link Administration Holdings Limited (ASX:LNK) - Link has agreed to Dye & Durham’s revised offer of $4.81 per share. The shares were pegged at AU$3.960 per share.
• Telix Pharmaceuticals Limited (ASX:TLX) – TLX shares were trading 11.849% higher at AU$6.230 apiece at 10:54 AM AEST. The company has recorded AU$25.8 million in net cash outflows in June quarter.
• Santos Limited (ASX:STO) – The energy giant released its second quarter report as per which it has delivered record first half sales revenue of US$3.8 billion, up 85%. At 11:00 AM AEST, the stock was at AU$7.340 apiece, down 0.676%.

Global equity Indices

Majority of US stocks fell on Wednesday evening, however, Wall Street witnessed a surge in tech stocks. Towards the close, the Dow Jones Industrial average was 0.2% up, the S&P 500 was 0.6% up and the NASDAQ Composite was 1.6% higher.

Wall Street took cues from Tuesday’s upbeat closing backed by the positive tone established by Netflix, Inc. (NASDAQ:NFLX). Netflix  stated that it lost around one million subscribers in its second quarter, it talked about its growth and an ad-supported subscription tier to be brought next year. The stock gained around 7%. 

Mortgage stocks fell around 6%, thanks to the rising loan rates pulling down new buyers. The Fed Reserve is likely to increase the interest rates further by 0.75%. 

In the bond markets, US 10-Year yields were at 3.03%.

Commodities:

The tension between Russia and Ukraine has widened as Russia’s military tasks have now started beyond eastern Donbas region. The geographical tasks would extend even further in upcoming days.

Russian President Vladimir Putin stated on Wednesday that UAE and Saudi Arabia were extending help to mediate between Russia and Ukraine. Putin also has met Turkish President to talk about a deal that might result in Ukraine resuming Black Sea grain exports, now guarded by Russia.

As the war drags further, there are increased worries regarding Russia’s supplies of natural gas to Europe. This has prompted EU to tell member countries to curb the gas usage by 15% on emergency basis.

Oil and precious metals have declined but industrial metals recovered. Meanwhile, China has appointed a new central body to manage its iron ore operations resulting in iron ore markets posting mixed trade.

At 10:22 AM AEST, Crude Oil WTI was quoted at US$99.41/bbl while Brent was at US$106.50/bbl.

Gold was at US$1692.00 an ounce at 10:23 AM AEST.