ASX 200 opens higher on tech-powered Wall Street rally

Highlights

  • As of 10:30 AM AEST, the ASX 200 was trading 0.15% or 11.5 points up at 7,516.
  • The S&P 500 and NASDAQ Composite posted another record high closing on Monday, supported by technology stocks.
  • Pointsbet’s revenue rose 159% to AU$194.7 million in FY21, but due to heavy spending on the marketing, the company incurred a loss of AU$187.1 million.

On Tuesday, the Australian share market opened mildly higher with an uptick of 3.7 points to 7,508.2. The ASX 200 is tracking an overnight rally on Wall Street led by technology stocks, as investors responded positively to the US Fed’s dovish remarks on tapering of its monetary stimulus.

Image Source: Copyright © 2021 Kalkine Media

The S&P 500 and NASDAQ Composite posted another record high closing on Monday, supported by technology stocks. The S&P 500 gained 0.43% to hit 4,528.79. while the NASDAQ Composite was up 0.9% to 15,265.89. The Dow Jones Industrial Average fell 0.16% to 35,399.84 by the closing.

Related Article: S&P 500, Nasdaq extend gains on tech boost

How has the market performed so far?

As of 10:30 AM AEST, the ASX 200 extended the gains and was trading 0.15% or 11.5 points up at 7,516. The ASX All Ordinaries index was also trading higher by 9.8 points or 0.13% at 7,798.4.

Data Source: ASX Website (as of 31 August, 10:30 AM AEST)

The top ASX 200 contributors were InvoCare Limited (ASX:IVC) and Champion Iron Limited (ASX:CIA), both gaining 4.44% and 2.4%, respectively. On the other hand, stocks that are dragging the market are Mesoblast Limited (ASX:MSB) and Altium Limited (ASX:ALU), both losing 8.33% and 1.84%, respectively.

Coming to the market breadth, nine out of the eleven sectors are trading in the green. The Healthcare and Materials sectors are leading the pack with an uptick of 0.46% each, followed by the Information Technology sector, gaining 0.39%. Financials are losing the most with a downtick of 0.23%.      

Newsmakers

Harvey Norman Holdings Limited (ASX:HVN) has reported a record profit in FY21, with EBITDA climbing 78.8% to AU$1.18 billion and profit rising 80.2% up to AU$628.2 million from its Australian franchise. It declared a fully franked final dividend of 15 cents per share.

Cettire Limited (ASX:CTT) surpassed its FY21 prospectus forecasts with gross revenue soaring a massive 333% to AU$124.5 million, compared to the forecast of AU$89.1 million. The product margin was reported at 37% and active customers jumped 285% to 114,830.

Image Source: Copyright © 2021 Kalkine Media

Splitit Limited’s (ASX:SPT) sales climbed 94% to US$172.5 million in the six months to 30 June 2021, while gross revenue was up 79.37% to US$5.5 million in the same period. Total merchants on the platform rose 167% to 2,800, while total shoppers were up 83% to 566K.

Pointsbet Holdings Limited’s (ASX:PBH) revenue rose 159% to AU$194.7 million in FY21, but due to heavy spending on marketing, the company incurred a loss of AU$187.1 million. The increase in the revenue was supported by Australian and the US business. The company did not declare any dividend for FY21.

Westpac Banking Corp (ASX:WBC) has completed the sale of its lender mortgage insurance business to Arch Capital Group at book value which is expected to be approximately AU$350 million. The transaction also added 7 basis points to Westpac’s common equity Tier 1 capital ratio.     

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