ASX 200 opens lower; local miners lead losses

Summary

  • The ASX 200 opened mildly lower, 0.11 % or 8.3 points down to 7502.8, on Friday.
  • In the opening hour, the market breadth is slightly on a bearish side, with seven out of the 11 sectors falling so far.
  • Briscoe Group has seen an increase of 64% in the net profit to AU$64 million in the 26 weeks to 1 August 2021.

Australian benchmark index, the ASX 200, has opened mildly lower, 0.11 % or 8.3 points down to 7,502.8 on the last day of the week. Local miners have started the session with a downtick and also dragging the index due to falling iron ore prices, which are expected to offset positive cues from a rally in US stocks overnight.

 Image Source: Copyright © 2021 Kalkine Media

US stocks and crude oil prices recovered on Thursday after data showed the US unemployment claims declined further last week and the trade deficit widened - a positive economic data in the face of rising COVID-19 cases in the country.

On Thursday, the NASDAQ Composite and S&P 500 closed the session at their highest levels ahead of an anticipation around Friday's job report. The Dow Jones rose 0.78%, to 35,064.24, while the S&P 500 gained 0.6%, to 4,429.12. The NASDAQ Composite was up 0.78%, to 14,895.12.

Read More: BP expands dividend; how are O&G companies performing amid crude oil’s bull run

How has the market performed so far?

As of 10:30 AM AEST, the ASX 200 has recovered a bit and is left with a loss of only 1.9 points, trading at 7,509.2. The ASX All Ordinaries Index has also recovered from the opening loss, and is 1.2 points away from break-even, trading at 7,778.4. Splitit Payments Limited (ASX:SPT) and Grange Resources Limited (ASX:GRR) are losing the most, with a 9.38% and 6.54% loss, respectively.

The Early Trades || ASX 200: What to expect after US stocks rise as jobless claims fall?

In the opening hour, the market breadth is slightly on a bearish side, with seven out of the 11 sectors falling so far. Metals and mining sector is losing the most with a 0.9% fall, followed by 0.17% fall in Consumer discretionary. The Information Technology sector is leading the day on the gaining front with a 1.85% surge, supported by a rally in Afterpay.

Data Source: ASX Website (as of 6 August 2021, 10:30 AM AEST)

All top three losers in the ASX 200 are iron ore players. Fortescue Metals Group Limited (ASX:FMG), BHP Gropy Limited (ASX:BHP) and Champion Iron Limited (ASX:CIA) are all down 2.41%, 2.26% and 2.01%, respectively.

The top two stocks trying to support the index are Afterpay Limited (ASX:APT) and Collins Foods Limited (ASX:CKF), both gaining 5.35% and 2.05%, respectively.     

Newsmakers

Mayfield Childcare Limited (ASX:MFD) has declared an interim dividend of 2.47 cents per share, totaling a full-year FY21 dividend of AU$4.47 cents per share. The dividend has been declared on the back of a 129.4% jump to AU$1.3-million net profit in 2H FY21.

Metals X Limited’s (ASX:MLX) chief executive officer Michael Spreadborough will step down from his role, effective from Monday next week. He will join Canadian-Australian gold miner Novo Resources as its executive co-chairman.

Image Source: Copyright © 2021 Kalkine Media

BHP Group Limited (ASX:BHP) has committed a total of AU$544 million in capex to develop its Shenzi North oil project in the US Gulf of Mexico. It also flagged US$258 million in capex to move its Trion oil project in Mexico into the Front End Engineering Design (FEED) phase.

News Corporation (ASX:NWS) has reported a profitable FY21, recording a 4% jump to US$9.36 billion in the revenue, while the net income surged to US$389 million, compared to US$1.55 billion loss in FY20. The company’s book publishing business saw a jump of 19% in the revenue in FY21.

Briscoe Group Limited (ASX:BGP) has seen an increase of 64% in the net profit to AU$64 million in the 26 weeks to 1 August 2021.  The management said the results benefited from the pent-up demand in New Zealand, leading to a 22.3% increase to NZ$358.4 million in revenue during the same period.  

Read More: Despite lockdown, Australia’s June quarter retail sales up 0.4%

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