ASX 200 surges to a record high; gold miners trade lower   

Summary

  • A panic selling in oil and gold prices and concerns over the rapid spread of the Delta variant of coronavirus dented global sentiment.
  • The market breadth is very positive with 10 out of the 11 sectors trading higher today.
  • Challanger Limited has reported a AU$592 million net profit in FY21, as compared to a loss of AU$416 million in the last year.

On Tuesday, the Australian share market showed signs of strength in the early session. The ASX 200 inched up by 11 points or 0.15% to 7549.4, overlooking Wall Street’s retreat from last week’s record highs, with investors optimistic as the corporate earnings season gathered momentum.

Image Source: Copyright © 2021 Kalkine Media

A panic selling in oil and gold prices and concerns over the rapid spread of the Delta variant of coronavirus dented global sentiment. Energy shares witnessed the steepest fall among the 11 major S&P sectors, down along with crude oil prices as surging COVID-19 cases and the potential for further restrictions, particularly in China, raised concerns about the demand outlook for crude oil.

The S&P 500 dipped 0.09% on Monday to 4,432.34 while the Dow Jones was down 0.3% to 35,101.84. The NASDAQ Composite was mildly up by 0.16% at 14860.18.

Read More: US stocks close flat on oil slide, covid fears

How has the market performed so far?

As of 10:30 AM AEST, the ASX 200 has gained momentum and is trading 30.3 points or 0.4% higher, hitting a new all-time high of 7568.7. The ASX All Ordinaries index has also edged higher to 7,840, a gain of 0.46% in the opening session, supported by EMvision Medical Devices Limited (ASX:EMV) and AnteoTech Limited (ASX:ADO), gaining 8.37% and 5%, respectively.

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

The ASX 200 is further bolstered by Orocobre Limited (ASX:ORE) and James Hardie industries PLC (ASX:JHX), gaining 4.78% and 3.98%, respectively. Gold miners were the worst performing stocks in the opening session, with Ramelius Resources Limited (ASX:RMS) and Chalice Mining Limited (ASX:CHN), losing 3.11% and 2.97%, respectively. 

The market breadth is very positive with 10 out of the 11 sectors trading higher today. On the volatility front, the A-VIX has fallen 2.13% to 11.09. Over the last five days, the A-VIX has lost 5.48%.

Read More: Five countries that suffered deadliest COVID-19 onslaughts

Newsmakers

Mesoblast Limited’s (ASX:MSB) CFO Josh Muntner will step down from his duties on 30 August 2021. The Group’s head of finance Andrew Chaponnel will be taking the charge as an interim CFO.

Megaport Limited (ASX:MP1) has reported a net loss of AU$55 million in FY21, while the revenue has grown 35% to AU$78.3 million. At the end of the reported year, annualised recurring revenue had grown to AU$89.8 million, a 32% jump with total customers increasing 24% to 2285.  

Image Source: Copyright © 2021 Kalkine Media

Macquarie Group Limited (ASX:MQG) has taken a stake of £1 billion (AU$1.9 billion) into Britain’s highly politicised water utilities sector, buying a majority stake in Southern Water. The group will have to pump another £530 million for cleaning the balance sheet and sorting out the chunky debts of Southern Water’s complex network of subsidiary companies.

                       

How would ASX 200 trade after gold hits 4-month low?

 

Challanger Limited (ASX:CGF) has reported a AU$592 million net profit in FY21, as compared to a loss of AU$416 million in the last year. The company has also declared a dividend of 20 cents per share, an increase of 14 cents per share.

Commonwealth Bank of Australia (ASX:CBA) will help Klarna lift merchant numbers with customers in the retailing industry to enable them to accept Klarna in-store and online payments for free, until after the summer. It’s the first competitive response from the bank after last week’s mega deal of Square acquiring Afterpay Limited (ASX:APT). 

Read More: Larry Page’s New Zealand residency raises questions

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