ASX 200 opens lower; local miners accelerate fall

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ASX 200 opens lower; local miners accelerate fall

 ASX 200 opens lower; local miners accelerate fall
Image source: deepadesigns,Shutterstock

Highlights

  • The ASX 200 has opened 0.43% down or 32.3 points lower at 7,469.8 as Wall Street closes in lower.
  • With nine out of the 11 sectors trading lower today, the Metals and mining sector has taken the worst hit, falling 2.37%.
  • The ASX’s statutory net profit fell 3.6% to AU$480.9 million in FY21, while operating revenue was 1.4% down to AU$951.5 million.

Australian benchmark, the ASX 200, has opened in red as Wall Street ended lower overnight. The index was 0.43% down or 32.3 points lower at 7,469.8 at the opening of the market. A correction in commodity prices is also weighing on the local miners while a steady increase in the country's COVID-19 infections is making markets jittery.

Image Source: Copyright © 2021 Kalkine Media

On Wednesday, Wall Street closed the day lower, after minutes from the Fed’s meeting showed the officials’ split on when to ease economic stimulus, while a rise in COVID-19 infections across the world weighed on oil for the fifth consecutive session.

The Dow Jones was down 1.08%, to 34,960.69, while the S&P 500 lost 1.07%, to 4,400.27. The NASDAQ Composite ended the session 0.89% lower at 14,525.91.

How has the market performed so far?

As of 10:30 AM AEST, the ASX 200 has fallen further to 7,440.8, shedding 0.82% or 61.3 points. The ASX All Ordinaries Index has also taken a hit of 0.73% or 56.9 points to 7,713.8.

The fall in the ASX 200 has been majorly contributed by Redbubble Limited (ASX:RBL) and BHP Group Limited (ASX:BHP), both losing 11.44% and 5.24%, respectively.

Data Source: ASX Website (as of 19 August, 10:30 AM AEST)

A few stocks trying to keep the index from falling are Chorus Limited (ASX:CNU) and Netwealth Group Limited (ASX:NWL), both gaining 15.73% and 6.04%, respectively.

                         

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Market breadth is on a weaker side with nine out of the 11 sectors trading lower today. The Metals and mining sector has taken the worst hit, falling 2.37%, followed by a 0.35% downtick in the Healthcare sector. Only Telecommunications and IT sectors are trading in green, with a 0.22% and 0.09% gain, respectively.   

Read More: COVID-19 booster shot for immunocompromised people: are there any additional risks?

Newsmakers

Over The Wires Holdings Limited (ASX:OTW) has clocked a 29% increase in FY21 revenue to AU$112.7 million. However, the net profit has come down to AU$3.4 million, from AU$5 million last year. A one-time AU$3.9-million amortisation charge was the major hit to the profit figure.

Western Areas Limited (ASX:WSA) has confirmed that it was in preliminary discussions with IGO Limited (ASX:IGO) in changing the control proposal regarding the takeover. It will further update regarding the new terms and conditions or even whether the transaction would take place or not.

Image Source: Copyright © 2021 Kalkine Media

Humm Group Limited’s (ASX:HUM) net profit for FY21 has skyrocketed 121.1% to AU$68.4 million, primarily driven by better performance of its commercial and leasing segments. BNPL volumes have also risen 31.3% to AU$1.03 billion and active customers grew 19.7% to 2.7 million.

Resolute Mining Limited (ASX:RSG) has flagged an impairment for FY21 between US$165–US$175 million. It is the result of an increase in the risk-free rate it’s using to value its Syama mine and lower production expectations.   

ASX Limited’s (ASX:ASX) statutory net profit fell 3.6% to AU$480.9 million in FY21, while operating revenue was 1.4% down to AU$951.5 million. The final dividend of AU$1.112 per share is also 9.2% less over the last year. 

Read More: How will the Melbourne lockdown affect the economy?

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