ASX 200 opens in green; Kogan.com rallies amid strong Q1 sales

Highlights

  • The ASX 200 climbed around 0.7% to 7423.9 in the opening session.
  • Mining stocks are leading the pack with a 1.49% gain, followed by the IT sector, gaining 1.46%.
  • Beach Energy tumbles over 4.51% amid a decline in production for the September 2021 quarter.

The Australian share market opened higher on Wednesday, supported by demand for energy and metal stocks, as commodity prices firmed overnight. Wall Street’s rally on the back of higher optimism for the reporting season also supported investor sentiment. The ASX 200 climbed around 0.7% to 7423.9 in the opening session.

Stock prices’ chart being displayed on the screen

Image Source: © Embe2006 | Megapixl.com

Stock indices across the world surged higher on Tuesday as US technology and healthcare shares extended their rallies. Earnings season has also remained mostly upbeat so far.

On Wall Street, the Dow Jones Industrial Average gained 0.56%, to 35,457.31, while the S&P 500 was up 0.74%, to 4,519.63. The NASDAQ Composite ended the session 0.71% up at 15,129.09.

Read More: Wall Street closes higher as strong earnings lift risk appetite            

How has the market performed so far?

As of 11:00 AM, AEDT, the ASX 200 was trading around the day’s high, gaining 0.98% or 72.3 points to 7,447.2. Over the last five days, the index has gained 2.4%. The ASX All Ordinaries index was also up 0.91% or 69.6 to 7,759.8.

Top 5 ASX gainers and losers

Data Source: ASX Website (as of 20 October 2021, 11:00 AM AEDT)

Top ASX 200 gainers were Worley Limited (ASX:WOR) and Kogan.com Limited (ASX:KGN), both gaining 8.25% and 7.86%, respectively. On the losing front, Whiteheaven Coal Limited (ASX:WHC) and Beach Energy Limited (ASX:BPT) have taken the biggest hit, shedding 6.34% and 4.51%, respectively.

The market breadth is extremely positive for the day, with 10 out of the 11 sectors trading in green. Mining stocks are leading the pack with a 1.49% gain. The IT sector is not far behind, and is up by 1.46%, followed by a 1% gain in the Industrial sector.

Newsmakers

  1. BHP Group Limited (ASX:BHP)
  • BHP has increased its offer for Noront Resources to 81 cents per share.
  • Canadian miner Noront Resources has considered this superior proposal and recommended its shareholders to tender their shares.
  • The new offer is a straight 36% premium to its previous offer.
  1. De Grey Mining Limited (ASX:DEG)
  • The company has planned to raise AU$125 million via a fully underwritten placement.
  • It is issuing shares at a price of AU$1.1 per share, representing a 9% discount to its last closing price of AU$1.21 on 19 October 2021.
  • The proceeds would be used towards completing its Mallina gold project prefeasibility study and conducting exploration drilling.
  1. com Limited (ASX:KGN)
  • The company recorded a solid growth in the September 2021 quarter, increasing its gross sales by 21.1% on a YoY basis.
  • However, there had been a downtick of 1.7% in gross profit for the same period.
  • The number of active customers grew 30.7% to 3.35 million for the quarter, compared to the last year.
  1. Beach Energy Limited (ASX:BPT)
  • The company’s oil production fell 4% to 5.7 million barrels in the September 2021 quarter, compared to previous quarter.
  • Lower production impacted revenues as well, which declined 8% to AU$388 million for the same period.
  • However, higher released price helped offset the impact of lower production.
  1. Super Retail Group Limited (ASX:SUL)
  • The management said the lockdown had adversely impacted the sales in the first quarter of FY22.
  • Its Macpac has taken the biggest hit.
  • Retailer’s like-for-like sales tumbled 12% on a YoY basis in the September quarter.

Read More: Covid cases surge again: Will there be another lockdown?

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