ASX 200 opens lower as investors await GDP data

Highlights

  • The ASX 200 was trading 0.11% lower at 7,526.5 in opening trade, ahead of its Q2 GDP data.
  • The Information Technology sector is the biggest loser so far, having shed 0.38%, followed by the Materials sector’s 0.24% fall.
  • Pioneer Credit has reported an increased statutory EBITDA of AU$54.4 million for FY21, compared to AU$33.7 million over the last year.

On Wednesday, the Australian benchmark index opened lower, with mining and energy stocks trading in the green. The ASX 200 was trading 0.11% or 8.4 points lower at 7,526.5 in opening trade. The market participants are also looking forward to the country's gross domestic product data for the second quarter.

Image Source: Copyright © 2021 Kalkine Media

Australia's economy will likely take a hit in the second quarter, owing to renewed lockdown restrictions in an attempt to contain rising COVID-19 cases in the country. According to a poll conducted by Reuters, a snail-paced vaccination rollout was the top risk to growth. Also, a surge in new COVID-19 variants in Australia's most populous city, Sydney, and in several states, is threatening an economic recovery in coming quarters as well.

Global equities marked their seventh consecutive month of gains on Tuesday, but US stocks closed slightly lower as weak economic data suggested slower growth ahead as market participants awaited US jobs data at week's end.

Wall Street's indices closed marginally lower on Tuesday. The Dow Jones fell 0.11% to 35,360.74, while the S&P 500 was down 0.13% to 4,522.69. The NASDQ Composite fell 0.04% to 15,259.24.

Related article: US stocks slip on consumer confidence data

How has the market performed so far?

As of 10:30 AM AEST, the ASX 200 witnessed a steep intraday fall, shedding 0.91% or 68.4 points to 7,466.5. The ASX All Ordinaries index also took a hit of 0.87% or 68.2 points to 7,755.1.

Data Source: ASX Website (as of 1 September 2021, 10:30 AM AEST)

The top ASX 200 laggards weighing on the index are Reliance Worldwide Corporation Limited (ASX:RWC) and Monadelphous Group Limited (ASX:MND), both losing 4.78% and 4.76%, respectively. However, there are a few stocks trying to keep the index from falling, such as Harvey Norman Holdings Limited (ASX:HVN) and IGO Limited (ASX:IGO), both gaining 1.77% and 1.66%, respectively.

The market breadth is quite weak for the day with nine out of the eleven sectors trading lower. The Information Technology sector is the biggest loser so far, having shed 0.38%, followed by the Materials sector’s 0.24% fall. The Consumer Discretionary and the Energy sectors are trading marginally higher. 

Newsmakers

OceanaGold Corporation (ASX:OGC) has resumed its New Zealand operations after the government downgraded the COVID-19 restrictions of the country. The company is now using strict health and safety protocols to safeguard its workforce.

Image Source: Copyright © 2021 Kalkine Media

Pioneer Credit Limited (ASX:PNC) has reported an increased statutory EBITDA of AU$54.4 million for FY21, compared to AU$33.7 million over the last year. The new loss also narrowed down to AU$19.7 million from AU$40.1 million in FY20.

Metcash Limited (ASX:MTS) has informed that the company’s sales are down 1.8% for the 16 weeks to 15 August 2021, as compared to the previous corresponding period. The total food sales were also down 7.4% in the same period.

Read More: Morrison Government grants AU$1.2 million to encourage the Country’s Defense exports

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK