ASX 200 opens higher; Gold miners and tech companies take charge

Highlights

  • The ASX 200 was trading 0.6% up, to 7,315.2, in the opening trade, supported by gold miners and tech companies.
  • Wall Street ended in green on Wednesday after a choppy session.
  • Eight out of the 11 sectors were trading in green, with the IT sector leading with a gain of 2.56%.

On Thursday, Australian shares made a higher opening, helped by gains in gold miners and tech companies as bullion prices rose firmly overnight and Wall Street ended Wednesday’s session on a higher note, led by gains in big growth stocks and tech-heavy Nasdaq. The ASX 200 was trading 0.6% up, to 7,315.2 in the opening trade.

Stock prices flashing on a trading screen

Image Source: © Embe2006 | Megapixl.com

Wall Street ended in green on Wednesday after a choppy session as two-year Treasury yields kept on surging, hitting 18-month highs on the hope that policy tightening was in the offing.

Optimism about economic growth supported the S&P 500 to close with a gain of 0.30% to 4,363.8, while the NASDAQ Composite surged 0.73% to 14,571.64. The Dow Jones Industrial Average ended the session on a flat note.

Read More: US stocks close flat after inflation data

How has the market performed so far?

As of 11:00 AM AEDT, the ASX 200 gained 0.85% further to trade at 7,334.1, while the ASX All Ordinaries index was up 0.92% or 69.6 points to 7,641.5.

Top 5 ASX gainers and losers

Data Source: ASX Website (as of 14 October 2021, 11:00 AM AEDT)

Top ASX 200 contributors were Netwealth Group Limited (ASX:NWL) and The a2 Milk Company Limited (ASX:A2M), both gaining 8.53% and 5.77%, respectively. On the flip side, Redbubble Limited (ASX:RBL) and Viva Energy Group Limited (ASX:VEA) were the biggest losers, dragging the index by 13.37% and 3.75%, respectively.

Talking about market breadth, 8 out of the 11 sectors were trading in green, with the IT sector leading with a gain of 2.56%. The energy sector is down 1.38%, making it the top losing sector.    

Read More: Three ASX penny stocks that turned out to be goldmine this year

Newsmakers

  1. Orica Limited (ASX:ORI)
  • The company has announced its plans to achieve net-zero emissions by 2050.
  • It will be working on reducing its scope one and two greenhouse gas emissions by 40% by 2040.
  • It will also work closely with suppliers to procure lower emission intensity ammonium nitrate.
  1. South32 Limited (ASX:S32)
  • The company has signed a deal to buy a 45% stake in Sierra Gorda copper mine in Chile for AU$2.1 billion.
  • The deal will be funded through cash on hand and a AU$1 billion debt facility.
  • Sierra Gorda is expected to produce 180kt of copper, 54koz of gold and 1.06Moz of silver in 2021.
  1. Healthco Healthcare and Wellness Reit (ASX:HCW)
  • The real estate investment trust has acquired a new property worth AU$200 million.
  • The acquisition has increased the value of REIT’s portfolio by around 20% to AU$850 million.
  • The management also revised its guidance for funds from operations from 4.2 cents per unit of trust to 5 cents for FY22.
  1. Netwealth Group Limited (ASX:NWL)
  • The management has revised guidance for net inflows from funds under administration AU$12.5 billion.
  • The group attracted AU$4 billion, alone in September 2021 quarter, pushing its administered funds to AU$52 billion.
  • It was the biggest quarterly inflow of funds for the company on record.
  1. Redbubble Limited (ASX:RBL)
  • The company’s gross profit tumbled 34% in the September 2021 quarter.
  • A severe fall in the sales of masks made a heavy dent on the company’s sales.
  • Gross transaction volume fell almost 20% to AU$142 million, compared to the same quarter last year.

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