ASX 200 tumbles at opening; Beach Energy gains on new production plan

Highlights

  • The ASX 200 was trading 0.17% or 12.5 points lower at 7,371.7 at the opening tick.
  • The market breadth has been quite negative so far, with only two out of the 11 sectors trading in green.
  • Beach Energy plans to increase oil production to 28 million barrels by FY24.

On Tuesday, the Australian share market opened lower, with NASDAQ index closing in red, weighing on local tech stocks. However, a boost to Australian miners from strong commodity prices is capping the losses. The ASX 200 was trading 0.17% or 12.5 points lower at 7,371.7 at the opening tick.

An investor staring at a falling market

Image Source:  Rawpixelimages | Megapixl.com

The US government borrowing costs advanced for a sixth consecutive week on Monday, triggering a sell-off in tech stocks as investors bet on rising interest rates, while a three-year high in crude oil prices lifted the energy space.

On Wall Street, the Dow Jones rose 0.21%, to 34,869.37, while the S&P 500 lost 0.28% to 4,443.11. The NASDAQ Composite closed the session 0.52% down at 14,969.97.

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

How has the market performed so far?

Benchmark index, the ASX 200, had further fallen by 0.6% or 44.2 points to 7,340, by 10:30 AM AEST. The ASX All Ordinaries index was down 0.63% or 48.4 points to 7,642.3.

ASX 200 top gainers and losers

Data Source: ASX Website (as of 28 September 2021, 10:30 AM AEST)

The top losers were Megaport Limited (ASX:MP1) and James Hardie Industries PLC (ASX:JHX), both losing 3.02% and 2.92%, respectively. On the flip side, stocks trying to keep the index from falling were Beach Energy Limited (ASX:BPT), gaining 5.67%, followed by Collins Foods Limited (ASX:CKF), rising 5.43% in the early session.

The market breadth has been quite negative so far, with only two out of the 11 sectors trading in green. The Consumer Discretionary sector is leading the falling sectors with a 0.33% cut, while the Energy sector is holding its ground with a 0.11% gain.  

Newsmakers

  1. Beach Energy Limited (ASX:BPT)
  • The company plans to increase oil production to 28 million barrels by FY24.
  • The increased production target would represent a 13% compound annual growth rate (CAGR).
  • The company will also try to cut its carbon emissions by a quarter by 2025.
  1. Origin Energy Limited (ASX:ORG)
  • The company’s 20% stake in UK-based Octopus Energy has nearly trebled to £3 billion.
  • Origin Energy bought a fifth in Octopus Energy in May 2020.
  • Octopus Energy’s valuation soared after Generation Investment Management purchased a 7% stake of Octopus for £211 million.
  1. Argo Global Listed Infrastructure Limited (ASX:ALI)
  • The management has announced a Share Purchase Plan for shareholders.
  • The company will issue new shares at a maximum price of AU$2.28 per share, representing a 5% discount to the ALI share’s closing price on the record date.
  • The record date for the eligibility was 27 September 2021 and the offer will open on 1 October 2021.
  1. Eagle Mountain Mining Limited (ASX:EM2)
  • Eagle Mountain Mining has received firm commitments for AU$16 million via a well-supported placement.
  • The company will be issuing 24.61 million new ordinary shares to institutional investors at AU$0.65 per share.
  • The funds will be used for diamond drilling activities at the Talon and Golden Eagle projects.
  1. ADX Energy Limited (ASX:ADX)
  • The company entered into an agreement with Siemens Energy and RED Drilling & Services GmbH to develop a small-scale demonstrator plant.
  • The plant will utilise a closed system CO2-based geothermal power generation technology at an existing well site.
  • This pilot project is intended to showcase the proof of concept of this geothermal energy conversion technology.

Read More: Five strong ASX financial penny stocks for the year

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