ASX 200 rebounds; FMG gains on exceeding shipment guidance

Summary

  • As of 10:30 AM AEST, the ASX 200 is trading 0.35% or 25.8 points up, at 7,405.1, recovering a healthy 36.8 points from the low made on Wednesday.
  • The market breadth is on a positive side, with 8 of the 11 sectors trading in the green.
  • CSR Limited has sold the remaining 12.4 hectare of land at Horsley Park, NSW for a total consideration of AU$124 million.

On Thursday, Australian shares opened on a higher note as Wall Street ended mixed overnight after the US Federal Reserve affirmed the economic recovery was on track despite a surge in coronavirus infections

After yesterday’s decent fall of 0.7% or 52.1 points to 7,379.3, the benchmark index seems to be recovering today. At the opening tick, the ASX 200 is trading 0.29% or 21.2 points up at 7,400.5.

 Image Source: Copyright © 2021 Kalkine Media

US stocks closed mixed on Wednesday and the US dollar traded lower amid the Fed’s positive statement on the economic recovery, but it did not offer clues about when it will start to tighten its monetary policy. It said that the central bank was still miles away from considering a hike in interest rates.

On Wall Street, the Dow Jones fell 0.36% to 34,930.94, while the S&P 500 traded almost flat, with a minor loss of 0.02% at 4,400.63. The NASDAQ Composite gained the most, rising 0.7% to 14,762.58.

How has the market performed so far?

As of 10:30 AM AEST, the ASX 200 is trading 0.35% or 25.8 points up, at 7,405.1, recovering a healthy 36.8 points from the low made on Wednesday. The ASX All Ordinaries Index is also trading 0.35% up at 7,676.3, majorly contributed by Capricorn Metals Limited (ASX:CMM) and Ora Banda Mining Limited (ASX:OBM), both rising 22.62% and 15.38%, respectively.

Data Source: ASX Website (29 July 2021, as of 10:30 AM AEST)

The top ASX 200 contributors are Iress Limited (ASX:IRE) and Domain Holdings Australia Limited (ASX:DHG), both surging 12.71% and 5.3%, respectively. Talking about laggards, Seven Group Holdings Limited (ASX:SVW) has lost 2.79% in opening trade and Chalice Mining Limited (ASX:CHN) is down by 2.17%.

                       

The Opening Bell || What's Fueling The ASX 200 Rebound?

 

The market breadth is on a positive side, with 8 of the 11 sectors trading in the green. The Materials sector is again gaining the most with a 1.3% uptick, followed by a 0.65% rise in the IT space. A-REIT is showing a lacklustre performance, losing 0.45% in the opening session.

Read More: What glued investors in the TasFoods & Silex Systems’ presentation?

Newsmakers

Airtasker Limited (ASX:ART) had been affected by lockdowns in Melbourne, Sydney and Adelaide. For the financial year ended June 2021, the company posted operating cashflow of AU$5.5 million on revenue of AU$30.5 million.

Resolute Mining Limited’s (ASX:RSG) quarterly production for the June 2021 quarter has fallen 10% to 77,450 ounces, over the previous quarter. In line with the lower production, the company was forced to downgrade its production guidance for the year.

Image Source: Copyright © 2021 Kalkine Media

Macquarie Group Limited (ASX:MQG) has witnessed improved trading conditions in Q1 FY22, leading the group to deliver net profit contribution significantly higher in the same period last year. However, it continued to maintain a cautious stance with conservative approach to liquidity, capital and funding.

CSR Limited (ASX:CSR) has sold the remaining 12.4 hectare of land at Horsley Park, NSW for a total consideration of AU$124 million. The company has generated total proceeds of AU$408 million, by selling all available sites at Horsley Park.

Fortescue Metals Group Limited (ASX:FMG) has surpassed its shipment guidance for FY21, contributed by record shipment in the last quarter. The company shipped 49.3 million tonnes of iron ore shipment in Q4 FY21, and 182.2 million tonnes in FY21, exceeding the guidance of 182 million tonnes.

Read More: Latest news from two ASX listed copper players- IGO Limited (ASX:IGO) and Oz Mineral (ASX:OZL)

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