ASX hits 3-week high on BNPL, miners boost

Summary

  • The S&P/ASX200 gained 43.70 points or 0.60% to 7,370.60, crossing above its 20-day moving average.
  • All 11 sectoral indices traded in green, while material was the top performer with 1.5% gain.
  • Tech firm Nuix was the top gainer on the ASX, while logistic firm WiseTech Global was the worst performer.

Australian shares continued to trade higher by Thursday afternoon, extending opening gains, led by BNPL, and miners stocks. The market sentiment also got a lift from solid cues from Wall Street, which saw the S&P 500 and NASDAQ hitting new record highs.

The S&P/ASX200 was trading higher by 43.70 points or 0.60% at 7,370.60, crossing above its 20-day moving average. Earlier today, the index opened higher today on the back of a stronger Wall Street closing and surging iron ore and copper prices. The taper timeline hinted by the US Fed overnight boosted investors’ sentiment. The minutes from the last US Federal Reserve meeting signaled that policy tightening might still take some time.

In a rare sight, all the 11 sectoral indices were flashing in green. The material sector was the best performer with 1.5% gain. Among others, industrials, information technology, and consumer staples were notable gainers.

                       

The Mid Market Pulse || Did you know: ASX hits 3-week high on BNPL, miners boost

 

Miner stocks were in an upbeat mood, hitting their highest levels in over three weeks, owing to a rise in metal prices. Heavyweight miners BHP Group (ASX:BHP) and Fortescue Metals Group (ASX:FMG) were leading the rally as iron ore and copper prices advanced.  

In a similar trend, gold stocks were also trading firmly, as prices of the yellow metal rose against declining US Treasury yields. Top independent gold producer Newcrest Mining (ASX:NCM) climbed to its highest level in three weeks, while smaller peer Bellevue Gold (ASX:BGL) also jumped up on raising resource estimate. 

ASX-listed energy stocks were trading mostly lower today. Barring Woodside Petroleum (ASX: WPL), all other players such as Oil Search Ltd (ASX:OSH), Origin Energy Ltd (ASX:ORG), and Beach Energy Limited (ASX:BPT) were trading in red.

In the BNPL space, Zip Co (ASX: Z1P) was leading the rally, followed by Afterpay and EML Payments, among others.

Top Gainers and Losers

Image source: AshDesign, Shutterstock.com

Tech firm Nuix was the top gainer on the ASX, rising 8.23%, extending rally for the second day, after the American private equity firm Apollo Global acquired a strategic stake in the company. Some of the other notable gainers were BNPL major Zip Co, investment firm Seven Group Holdings, global online marketer Redbubble and aerial imagery technology firm Nearmap.

On the flip side, logistic firm WiseTech Global was the worst performer on the ASX pack, falling 2.26%. Some of other top laggards were real estate firm Unibail-Rodamco-Westfield, property firm Ingenia Communities, gold miner Perseus Mining and Australia's largest gambling company Tabcorp Holdings.

Shares in news

Image Source: © Ptoone | Megapixl.com

In the latest series of M&A activity in the finance space, investment management firm AMP (ASX: AMP) has entered into a pact with Macquarie Asset Management (ASX: MQG) to sell AMP Capital’s Global Equities and Fixed Income (GEFI) business for up to AU$185 million. Reacting to the news, shares of AMP rose over 1% to AU$1.13, while Macquarie Group stock was up 0.5% at AU$157.2.

Software firm Laybuy Group Holdings (ASX: LBY) rose 4.5% to 57.5 Australian cents after the company provided business update for the June quarter. The company reported that its gross merchandise value (GMV) grew to a record NZ$184 million (AU$172.5 million), while its UK GMV more than doubled on yearly basis.

Shares of Sydney Airport (ASX: SYD) gained nearly 3% to $7.83 amid report that a consortium led by Macquarie Group is mulling a rival offer for the company. Last week, the country’s only listed airport ahd received an AU$8.25 per share takeover bid from a consortium of infrastructure investors, including IFM Investors and Q Super.

Shares of Tesserent Limited (ASX:TNT) climbed nearly 3% to 26.7 cents after the tech firm acquired a stake in Daltrey Pty Ltd, a leading sovereign biometric company. The company will initially invest AU$600K for an initial stake, with a follow-on investment of a further AU$1.1 million upon successfully meeting key growth targets.

Shares of Netwealth (ASX: NWL) gained 1.6% to AU$16.27 after the investment management firm provided business update for the June quarter. The company saw its funds under administration surging to AU$47.1 billion in the June quarter, while net inflows rose to $3.1 billion.

The share price of Worley (ASX: WOR) was up 0.5% at AU$11.31 on securing a new contract. Red Sea National Refining and Petrochemicals Company has awarded Worley a services contract for its greenfield integrated refinery and petrochemicals complex in Egypt.

The share price of Boral (ASX: BLD) fell 0.2% to AU$7.39 after diversified Australian investor Seven Group splashed around AU$440 million to raise its stake in building materials company Boral north to 40%.

Cirralto Limited (ASX: CRO) has shared that it had signed a five-year Referral Agreement with Mastercard Asia/Pacific Pte. Ltd, a wholly owned subsidiary of Mastercard Incorporated.

Bellevue Gold (ASX:BGL) shares traded 0.5% higher at AU$1 on hiking resource estimate. The West Australian gold explorer has hiked its resource estimate 25% to 3 million ounces at an average grade of 9.9 grams per tonne.

Alkane Resources (ASX:ALK) soared over 2% to AU$1.23 after the Australian multi-commodity mining and exploration company surpassed Tomingley production guidance. The company announced that its Tomingley Gold Operations in central-west New South Wales had exceeded its production guidance of 50,000 oz to 55,000 oz for the financial year 2021. 

BNPL player Payright (ASX:PYR) jumped 7% to 58 cents after entering into a partnership with Mint Payments. The deal will Mint integrating Payright’s BNPL solution into its online payments processing system. 

Asian Markets Edge Lower in Opening Trade

Asia stocks were trading lower in opening deals on Wednesday, barring China.  Japan's Nikkei was trading 0.35% lower, while Singapore’s Straits Times fell 0.2%. Seoul’s Kospi dropped 0.25%. Taiwan’s Weighted Index traded flat near baseline.

In a similar trend, Hong Kong’s Hang Seng was down 0.5%, and New Zealand’s benchmark S&P/NZX 50 traded marginally low.

Bucking the trend, China’s Shanghai Composite rose 0.15%.

On Wednesday, global equity markets rose as investors digested the minutes of the latest US Federal Reserve meeting. The correction in the interest rate on bonds also supported global equities. In the overnight trade, Wall Street ended higher after minutes from the Fed meeting revealed that officials were divided on economic signals. The Dow Jones gained 0.3%, the S&P 500 surged 0.34%. The tech-heavy NASDAQ Composite registered a gain of 0.17%. 

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