ASX 200 rallies at open as Wall Street recovers losses

Highlights

  • The ASX 200 shot up 0.31% or 22.4 points to 7,250.2 in early trade.
  • The energy sector was the top gainer, surging 1.22% as crude oil sharply recovered from lower levels.
  • Wall Street recouped losses from previous session's steep sell-off and bounced back sharply on Thursday.

The Australian stock market opened on a higher note on Friday as investors look to recoup some of the losses after the broader markets declined for four out of five sessions even as the Omicron variant of coronavirus rattled the global markets a week ago. The ASX 200 shot up 0.31% or 22.4 points to 7,250.2 in early trade.

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Global stocks declined on Thursday, reversing gains from the previous session as 23 countries have reported cases of rapidly spreading Omicron variant and a lack of information about it left markets volatile, while crude oil futures reversed from the lowest level since August 2021.

Wall Street recouped losses from the previous session's steep sell-off and bounced back sharply with a broad rally on Thursday, as investors snapped up bargains.

The Dow Jones Industrial Average ended the session 1.82% up at 34,639.8, while the S&P 500 gained 1.42% to 4,577.09. The NASDAQ Composite added 0.83%, to 15,381.33.

Read More: These are the most expensive cities to live in, according to EIU

How has the market performed so far?

As of 11:00 AM AEDT, the ASX 200 retraced from the day’s high of 7,288.2 and gained 12.3 points or 0.17% to 7,235, while the ASX All Ordinaries index was up 0.13% or 10 points to 7,546.1. The A-VIX was down 2.27% or 0.34 points to 14.85.

Top 5 ASX gainers and losers

Data Source: ASX Website (as of 3 December 2021, 11:00 AM AEDT)

The top ASX 200 gainers supporting the market today were Corporate Travel Management Limited (ASX:CTD) and Worley Limited (ASX:WOR), both gaining 3.68% and 2.98%, respectively. On the flip side, stocks that have tumbled the most in the morning session were TPG Telecom Limited (ASX:TPG) and Regis Resources Limited (ASX:RRL), both losing 6.04% and 3.04%, respectively.

On the sectoral front, bulls and bears were having a tough fight with 6 sectors out of the 11 were trading lower. Those sectors included Healthcare, consumer staples, IT, among others. The energy sector was the top gainer, surging 1.22% as crude oil sharply recovered from lower levels, followed by a 1.02% rise in the Materials sector. 

Newsmakers

  1. Jatcorp Limited (ASX:JAT)
  • Jatcorp’s subsidiary ANMA has entered into an agreement with Oceania Supply Chain Management Pty Limited.
  • Under the agreement, ANMA will manufacture and supply a very significant volume of dairy powder products.
  • The Agreement includes a binding minimum order of 1.5 million units in the first 12 months.
  1. Winchester Energy Limited (ASX:WEL)
  • The company has acquired a 100% working interest in the Varn Oil Field.
  • The Varn Oil Field contains existing proven and a probable of 1,068,000 barrels of oil.
  • The upfront acquisition and development cost, US$5.61 per barrel of oil equivalent, will be funded from existing cashflows.
  1. Celamin Holdings Limited (ASX:CNL)
  • Celamin has secured binding commitments to raise AU$3.2 million at AU$0.075 per share.
  • Major shareholders - Lion Selection Group and Retzos Group have participated in the placement.
  • The capital raised will fund exploration, a major resource upgrade and technical studies to progress through the Chaketma phosphate project.
  1. Carly Holdings Limited (ASX:CL8)
  • The company has completed the second tranche of placement, issuing 8.18 million shares and 2.78 million options.
  • A total of AU$0.65 million has been raised.
  • Major shareholders of the company - Willoughby Capital Pty Limited and SG Fleet Management Pty Limited participated in the placement.
  1. Ausgold Limited (ASX:AUC)
  • Ausgold shares have entered a trading halt on the ASX.
  • Securities will remain in a trading halt till 7 December 2021 or when the announcement is released to the market, whichever comes earlier.

Read More: Three ASX-listed penny stocks trading at attractive dividend yield

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