ASX 200 opens in green on strong Wall Street cues

Highlights

  • At the opening, the benchmark ASX 200 index was trading higher by 12.4 points at 7,309.3.
  • The IT sector is leading with a gain of 1.15%, followed by a gain of 0.72% in the utilities sector.
  • Hot Chili has exercised its option to acquire a 100% stake in the company’s world-class Cortadera copper-gold discovery in Chile.

The Australian share market edged higher at the opening on Thursday, on the back of tech stocks surging in sync with Wall Street, which closed sharply higher after the US Federal Reserve signalled to taper its stimulus soon. At the opening, the benchmark ASX 200 index, gained 12.4 points or 0.17% to 7,309.3, reclaiming the 7,300 mark.

ASX 200 opens higher

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Chinese blue-chips ended lower on Wednesday, however, real-estate shares jumped as China’s debt-laden Evergrande assured creditors to settle their interest payments on a domestic bond.

US stocks ended in the green on Wednesday as market participants took in stride the latest signals from the Fed, including its clear stance on reducing its monthly bond purchases soon. The Dow Jones rose 1% to 34,258.33, while the S&P 500 gained 0.95% to 4,395.63. The NASDAQ Composite ended the session 1.02% up, at 14,896.85.

Related article: US stocks rebound on Fed's economic assessment

How has the market fared so far?

By 10:30 AM AEST, the ASX 200 has risen sharply by 0.91% or 66.5 points to 7,363.4. The ASX All Ordinaries index was trading over a percent up, to 7,670.4.

Top contributors in today’s investor-friendly market are Bapcor Limited (ASX:BAP) and AGL Energy Limited (ASX:AGL), both gaining 4.02% and 3.7%, respectively. On the flip side, stocks that are falling the most are AusNet Services Limited (ASX:AST) and Eagers Automotive Limited (ASX:APE), both shedding 1.19% and 0.91%, respectively.

Coming to the market breadth, after a long time, bulls seem to have a firm control over the market. 10 out the 11 sectors were trading higher. The IT sector is leading with a gain of 1.15%, followed by a gain of 0.72% in the Utilities sector.  

Newsmakers

Brickworks Limited (ASX:BKW), a manufacturer of building materials, reported a net profit of AU$239.2 million for FY21, falling 20% over the last year. Although EBITDA grew 61% to AU$453.5 million, the significant items related to costs hit the profit figure.

Investment company Washington H. Soul Pattinson and Co. Limited’s (ASX:SOL) profit for FY21 rose by a massive 93% to AU$328.1 million, allowing the company to announce the highest dividend in 19 years. Robust performance from its three investments - Brickworks, Round Oak Minerals and New Hope –contributed to the performance.

Premiere Investments (ASX:PMV), which operates a range of specialty retail fashion chains, almost doubled its FY21 profit despite widespread store closure during the reported period. The net profit was reported at AU$271.8 million, a 97.3% jump over the last year.

ASX stocks in news

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Adavale Resources Limited (ASX:ADD), a nickel sulphide exploration company has announced it would commence work on its 100% owned Lake Surprise Project tenements in mid-October 2021. Earlier, the plans were put on hold due to disruptions by COVID-19.

Australian exploration company Hot Chili Limited (ASX:HCH) has exercised its option to acquire a 100% stake in the company’s world-class Cortadera copper-gold discovery in Chile. The company has now satisfied US$32 million in payments since February 2019 to acquire Cortadera.

Read more: Five ASX penny stocks for dividend fans

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