ASX 200 trades higher; firm commodity prices lift miners

Summary

  • As of 10:30 AM AEST, the ASX 200 is trading near the high of the day, up by 0.34% to 7,500.2.
  • The market breadth is somewhat balanced today, with six out of the 11 sectors trading in the green.
  • Air New Zealand has lowered its guidance to a maximum loss of NZ$530 million in 2022.

Australia’s benchmark index, the ASX 200, has opened 0.15% or 11.1 points higher on Wednesday, tracking its Wall Street peers. Firmer commodity prices are further expected to support local mining shares. On Tuesday, miners and energy stocks were the biggest laggards, dragging the ASX 200 by 0.23%.

Image Source: Copyright © 2021 Kalkine Media

On Wall Street, stronger-than-expected earnings reports from US companies in the second quarter’s reporting season has ratcheted up Wall Street forecasts on how this reporting season’s growth would stack up against the last year.

On Tuesday, the Dow Jones rose 0.8% to 35,117.32, while the S&P 500 gained 0.82% to 4,423.3. The NASDAQ Composite shot up 0.55% to 14,761.30.

Read More: US markets edge higher on earnings optimism

How has the market performed so far?

As of 10:30 AM AEST, the ASX 200 is trading near the high of the day, up 0.34% at 7,500.2. The ASX All Ordinaries index has surged over 0.2% to 7776.2, also trading near the day’s high, supported by Imricor Medical Systems Inc (ASX:IMR) and Lifestyle Communities Limited (ASX:LIC).

                       

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The market breadth is somewhat balanced today, with six out of the 11 sectors trading in the green. The Materials sector is leading the pack with a 0.83% gain, while the Healthcare sector is losing the most, with a 0.28% downtick. The A-VIX is trading 1.09% down at 11.6.

Image Source: ASX Website (as of 4 August 2021, 10:30 AM AEST)

The top gainers contributing in the ASX 200’s rally are Nickel Mines Limited (ASX:NIC) and Omni Bridgeway Limited (ASX:OBL), both gaining 2.26% and 2.23%, respectively.

On the losing front, Chalice Mining Limited (ASX:CHN) and Boral Limited (ASX:BLD) are the top laggards, falling 3.27% and 2.95%, respectively.

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Newsmakers

GUD Holdings Limited (ASX:GUD) has clocked a revenue of AU$557 million, an increase of 27.2% over the last year. The company has also increased its dividend payout to 32 cents per share as underlying net profit rose to AU$97.4 million, a healthy increase of 31.1% in the same period.

Genworth Mortgage Insurance Australia Limited’s (ASX:GMA) gross written premium has increased 21.1% to AU$289.7 million. Statutory net profit after tax was recorded at AU$59.4 million, an improvement on the AU$90 million loss posted last year.

Image Source: Copyright © 2021 Kalkine Media

BWP Trust’s (ASX:BWP) revenue has declined 2.3% to AU$152.2 million in FY21, while profit increased 24.9% to AU$149.2 million, despite leases from a number of smaller tenants were affected by lockdowns. It has also declared a final dividend of 9.27 cents per share.

Serko Limited (ASX:SKO) has flagged a noticeable plunge in the domestic travel space as according to the company travel bookings in Australia equalled only 35% in July 2021, as compared to July 2019’s volume. In June 2021, only a 56% volume was achieved, compared to June 2019.

Air New Zealand Limited (ASX:AIZ) has lowered its guidance to a maximum loss of NZ$530 million in 2022. The airline has blamed the revised guidance on the closure of the quarantine-free trans-Tasman bubble for eight weeks. Previously, the company was expecting a maximum loss of NZ$450 million in 2022.   

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