ASX 200 sheds opening gains; energy stocks rally amid surging oil prices  

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ASX 200 sheds opening gains; energy stocks rally amid surging oil prices  

 ASX 200 sheds opening gains; energy stocks rally amid surging oil prices  
Image source: whiteMocca, Shutterstock.com

Highlights

  • By the lunchtime, the ASX 200 had lost all of its opening gains and was trading flat at 7,248.2.
  • The Australian and New Zealand dollars ended in red on Tuesday amid concerns over higher oil prices.
  • By mid-day, 8 out of the 11 sectors were trading in green, with the Healthcare sector leading the most with a 1.06% gain.

The Australian share market opened on a higher note on Wednesday. During the opening session, the benchmark index was trading 0.3% up at 7,274. Wednesday’s positive mood of the market has been materialised from the global rally on Tuesday.

Wall Street ended with decent gains on Tuesday, as tech giants such as Microsoft and Apple strongly rebounded from Monday’s sell-off. Investors are also awaiting monthly payrolls data later in the week, which could potentially influence the US Fed’s decision on when to taper its monetary stimulus.

Stock prices flashing on a trading screen

Image Source: © Embe2006 | Megapixl.com

On Tuesday, S&P 500 rose 1.05% to end at 4,345.72 points, while the NASDAQ Composite was up by 1.25% to 14,433.83. The Dow Jones Industrial Average ended the session 0.92% up at 34,314.67.

The US dollar edged 0.2% higher at 93.981 on Tuesday, hovering around one-year high, as market participants remained wary ahead of a key payrolls report.

                 

ASX 200 sheds opening gains; energy stocks rally amid surging oil prices

 

The Australian and the New Zealand dollars ended in red on Tuesday amid concerns over higher oil prices, a possible economic slowdown in China and a broad sell-off in equity markets. The Aussie dollar traded 0.32% lower at $0.7265, as the Reserve Bank of Australia kept interest rates at 0.1%.

Read More: US stocks edge higher as big tech firms reap gains

How has the market performed so far?

By the lunchtime, the ASX 200 had lost all of its opening gains and was trading flat at 7,248.2. The ASX All Ordinaries index was also trading just 7 points up at 7,543.5, losing its opening momentum.

Surging crude oil prices have been strong support for energy players in today’s session. Santos Limited (ASX:STO) was up 2.5% to AU$7.44, Oil Search Limited (ASX:OSH) also rose 2.5% to AU$4.55 and Beach Energy Limited (ASX:BPT) traded 1.7% up to AU$1.46.

Tech stocks are also making new highs for the day, possibly taking cues from an overnight rally tech-weighted NASDAQ index.

Talking about the market breadth, since morning, sentiments are weighed towards a positive side. By mid-day, 8 out of the 11 sectors were trading in green with the Healthcare sector leading the most with a 1.06% gain, buoyed by CSL Limited’s (ASX:CSL) 2.1% gain to AU$292.73. Industrial space is the second most gaining sector so far, increasing by 0.9%.

The Utilities sector is the biggest laggard, losing 0.43%, while financials and materials space is also spoiling the mood.    

Read More: Five tech penny stocks on ASX with decent returns

Top Gainers and Losers

Top ASX 200 gainers after half of the session were Eagers automotive Limited (ASX:APE) and Janus Henderson Group PLC (ASX:JHG), both gaining 4.98% and 4.64%, respectively. Tech stocks such as Afterpay Limited (ASX:APT) and Xero Limited (ASX:XRO) also surged 4.38% and 3.24% higher, respectively, boosting sentiments of the IT space.

Top 5 ASX gainers and losers

Data Source: ASX Website (as of 6 October 2021, 12:00 PM AEST)

On the flip side, stocks that are spoiling the mood of the market were Washington H. Soul Pattinson and Co. Limited (ASX:SOL) and Flight Centre travel Group Limited (ASX:FLT), both shedding 4.63% and 4.32%, respectively.

Newsmakers

  1. Volpara Health Technologies Limited (ASX:VHT)
  • Medical imaging firm Volpara recorded US$1.2 million in recurring revenue in the quarter ended 30 September 2021.
  • This has been the strongest quarter for the company.
  • The total annualised recurring revenue has now reached US$20.4 million.
  1. Magellan Financial Group Limited (ASX:MFG)
  • The investment manager reported more than AU$4 billion fall in its funds under management (FUM).
  • Retail FUM was down by 4.9% to AU$29.97 billion, while institutional FUM fell 3.6% to AU$83.33 billion.
  • It has blamed portfolio rebalancing from three of its clients to be the key reason.
  1. Nuix Limited (ASX:NXL)
  • The company has appointed two new independent non-executive directors to the board.
  • This is part of the company’s strategy to increase number and diversity of Australian independent directors.
  • Both will be taking the charge immediately.
  1. The a2 Milk Company Limited (ASX:A2M
  • The company is fighting a class action, filed by Slater and Gordon.
  • It is alleged that the company is engaged in misleading or deceptive conduct with respect to the Corporation Act.
  • The company denied all allegations and is preparing to defend itself.
  1. Structural Monitoring Systems PLC (ASX:SMN)
  • The company has requested the ASX for a voluntary trading halt of its securities.
  • SMN shares will remain under a trading halt till the company makes a pending announcement or 8 October, whichever comes earlier.

Read More: Five ASX penny stocks in energy sector that stood out this year

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