ASX 200 opens higher; energy stocks fall as crude oil retreats from seven-year high

Highlights

  • The ASX 200 edged around 0.4% higher during the opening session.
  • Opening gains were contributed by 10 sectors and the energy space showed some losses on the screen, declining by 1.5%.
  • Qube’s AU$90-million acquisition of Newcastle Agri Terminal would be investigated by The Australian Competition and Consumer Commission (ACCC).

On Thursday, the Australian share market opened higher on the back of strong Wall Street closing. Investors seemed to be more affirmed on the hope that the US Congress could strike a deal to avert a government debt default. The ASX 200 edged around 0.4% higher during the opening session.  

Stock prices flashing on a trading screen

Image Source: © Embe2006 | Megapixl.com

Opening gains were contributed by 10 sectors and the energy space showed some losses on the exchange screen, declining 1.5%, broadly in sync with a drop in oil price overnight. West Texas Intermediate (WTI) price fell 1.8%, retreating from a seven-year high.

On Wall Street, the Dow Jones Industrial Average rose 0.3% to end at 34,416.99 points, while the S&P 500 was up 0.41% to 4,363.55. The NSADAQ Composite ended the session 0.47% up, at 14,501.91.

Read More: US stocks edge higher after weak start in early trade

How has the market performed so far?

As of 11:00 AM AEDT, the ASX 200 traded almost within the range of opening gains, 0.37% or 27 points up at 7,233.5. The ASX All Ordinaries index was up 0.63% or 46.9 points to 7,543.1.

Tech shares were leading the rally with a 1.3% gain in the IT sector, after facing a sell-off over last few days that wiped out all of their gains for the year.

Top 5 ASX gainers and losers

Data Source: ASX Website (as of 7 October 2021, 11:00 AM AEDT)

As crude oil price retreated overnight, almost half of the 10 worst performers from the early session were from the energy space, led by Whitehaven Coal Limited (ASX:WHC), which fell 6.7% after a decent rally over last few months.

Top ASX 200 gainers were Super Retail Group Limited (ASX:SUL) and Collins Food Limited (ASX:CKF), both gaining 5.35% and 5.0%, respectively. On the flip side, SeaLink Travel Group Limited (ASX:SLK) was the second top loser, shedding 2.49%.

Newsmakers

  1. Qube Holdings Limited (ASX:QUB)
  • Qube’s AU$90-million acquisition of Newcastle Agri Terminal would be investigated by The Australian Competition and Consumer Commission (ACCC) for “potential competition issues”.
  • The company had gone ahead for the deal despite the ACCC’s request to delay the acquisition.
  1. Sezzle Inc (ASX:SZL)
  • Sezzle launched its partnership with Target in the US ahead of its holiday shopping season.
  • The partnership was first announced on 3 June 2021.
  • Target’s other BNPL partner, Affirm, surged 20% on NASDAQ overnight on the partnership’s launch.
  1. Collins Foods Limited (ASX:CKF)
  • Collins Foods has entered into an agreement to run the franchise business of KFC in the Netherlands.
  • This deal with KFE Netherlands includes a plan to develop up to 130 new KFC restaurants over 10 years.
  • This deal is a big opportunity to expand the company’s operations in Europe.
  1. Seafarms Group Limited (ASX:SFG)
  • The company’s listed securities on the ASX have been placed under a trading halt.
  • Seafarms Group is to disclose material information in respect of project costs.
  • The trading halt will be lifted on 11 October 2021 or when the pending announcement is released, whichever comes earlier.
  1. Titan Minerals Limited (ASX:TTM)
  • Titan Minerals has completed its oversubscribed AU$18-million placement at AU$0.10 per share.
  • The placement was strongly supported by existing shareholders and institutional investors outside of Australia.
  • Proceeds from the placement will be used to accelerate drilling activities at Dynasty.

Read More: Five tech penny stocks on ASX with decent returns

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