ASX 200 opens in green; all eyes on RBA policy meet

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ASX 200 opens in green; all eyes on RBA policy meet

 ASX 200 opens in green; all eyes on RBA policy meet
Image source: Peshkova, Shutterstock.com

Highlights

  • The ASX 200 was up 0.3% this morning to 7,390.
  • IAG has reduced its profit margin guidance from 13.5%-15.5% to 10%-12%.
  • Seven out of the 11 sectors were trading in the green, with the real estate sector gaining the most, an uptick of 1.12%.

The Australian share market opened on a positive note on Tuesday in the wake of Wall Street gaining overnight. Meanwhile, market participants await the Reserve Bank of Australia's monetary policy meeting and expect interest rate to be remained unchanged at a record low of 0.1%. The ASX 200 was up 0.3% this morning to 7,390.

Stock market chart

Image Source: © Embe2006 | Megapixl.com

Global equity markets rallied on Monday, supported by expectations of fiscal stimulus in Japan. The rally was also bolstered by market participants shrugging off concerns over future interest rate hikes that have tempered bonds.

The NASDAQ rose on Monday and gained 97.53 points or 0.62% to 15,595.92, while the S&P 500 edged 0.18% higher to 4,613.68 as energy sector gains buoyed index and investors looked ahead to a major Federal Reserve meeting later in the week. The Dow Jones Industrial Average ended the session 94.28 points or 0.26% up to 35,913.84.

Read More: US indices gain on upbeat quarterly earnings, economic outlook

How has the market performed so far?

As of 11:00 AM AEDT, the ASX 200 had lost all of its opening gains and was trading in the red zone, losing 0.22% or 16.5 points to 7,354.7. The ASX All Ordinaries index was also down 0.23% or 17.4 points to 7,674.8. The A-VIX was up 1.65% to 14.26. Over the last five trading sessions, the A-VIX has gained 20.02%.

Top 5 ASX gainers and losers

Data Source: ASX Website (as of 2 November 2021, 11:00 AM AEDT)

The top ASX 200 gainers for the day so far are Goodman Group (ASX:GMG) and Janus Henderson Group CDI (ASX:JHG), both gaining 5.16% and 3.07% , respectively. On the flip side, Insurance Australia Group Limited (ASX:IAG) and Whitehaven Coal Limited (ASX:WHC) were the top laggards, shedding 6.09% and 3.81%, respectively.

Coming to the market breadth, seven out of the 11 sectors were trading in the green, with the real estate sector gaining the most, witnessing an uptick of 1.12%. The financial space is weighing on the ASX, having shed 1.03%, followed by a 0.5% loss in the materials sector. 

Newsmakers

  1. Insurance Australia Group Limited (ASX:IAG)
  • The management has decreased its profit margin guidance from 13.5%-15.5% to 10%-12%.
  • The company said unusual weather and excess storm increased its net natural perils allowance by AU$280 million.
  • This impacted profit margins by 360 basis points.
  1. Westpac Banking Corp (ASX:WBC)
  • Morgan Stanley downgraded Westpac after the bank reported a fall in net interest margin.
  • It said the FY22 outlook for both margins and expenses is far worse than expected.
  • The valuation has been reduced from AU$28.9 to AU$24.8 per share.
  1. Telix Pharmaceuticals Limited (ASX:TLX)
  • The Australian health regulator has approved Telix’s prostate cancer imaging product named Illuccix.
  • Product approval application is still awaited in Canada and Europe.
  • The final regulatory approval is also pending from the US FDA.
  1. Netwealth Group Limited (ASX:NWL)
  • Netwealth has proposed a merger with financial firm Praemium in a quest to create the largest independent wealth management platform in Australia.
  • Under the offer, Praemium shareholders will receive one Netwealth share for every 11.96 Praemium shares held.
  • Together, the combined entity would account for AU$72 billion of Australian platform funds under management.
  1. Unibail-Rodamco-Westfield CDI (ASX:URW)
  • The company has signed a co-investment partnership with AXA Investment Management to develop the Triangle Tower project in Paris.
  • The project is expected to start at the end of 2021.
  • The management has not disclosed any financial details yet.

Read More: Three ASX penny stocks that have become overbought amid a sharp surge

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