ASX sets a new 100-day high; gold miners, tech stocks lead

Summary

  • The ASX 200 ended 10.70 points or 0.15% higher at 7292.60, setting a new 100-day high.
  • The information technology sector emerged as the top performer for the second straight day with 1.15% gain.
  • Bitcoin, Ether and other cryptocurrencies fall amid concerns about US Federal Reserve tapering. 

The Australian share market closed higher on Tuesday, paring some of early gains, driven by gold miners, tech and healthcare stocks. The market gains were restricted due to weakness in telecom and financial stocks and a subdued finish on Wall Street overnight. Investors also turned jittery after data showed a fall in business confidence during Melbourne's lockdown to contain the spread of the COVID-19 pandemic.

The ASX 200 ended 10.70 points or 0.15% higher at 7292.60, setting a new 100-day high. Earlier today, the index opened high and touched a fresh record high of 7,315.60. The index has gained 2.10% in the last five sessions.

                       

The Last Trade || ASX Up 0.25% At Close; Gold Miners, Tech Stocks Lead

 

The market breadth, indicating the overall strength of the market, was positive with seven of the 11 sectoral indices closing in the green. The information technology sector emerged as the top performer for the second straight day, gaining 1.15%. The tech sector has rallied 3.96% in the past five sessions, tracking gains in the US counterpart.  Among others, Healthcare, A-REIT, Energy, Utilities and Industries also ended higher.

On the other hand, Materials, Telecommunications Services, Financials, Consumer Staples settled in the red with marginal losses.

Gold miners dominated the gains on the ASX, with sector heavyweights, Newcrest Mining (ASX: NCM) and Northern Star Resources (ASX: NST), rising between 0.5% to 1.4%. The rally in gold stocks was attributed to the surge in gold prices which hovered around U$1,900 an ounce on Tuesday. The correction in the dollar price and bond yields boosted appetite for the yellow metal.

Tech stocks extended rally for the second day, tracking overnight gains in Nasdaq, with buy-now-pay-later majors Afterpay Limited (ASX:APT) and EML Payments (ASX: EML), as well as intelligence firm Nearmap Ltd. (ASX:NEA) leading the pack.

Miners’ stocks fell, owing to softer iron ore prices, with index heavyweights Fortescue Metals Group Limited (ASX:FMG), BHP Group Limited (ASX:BHP) and Rio Tinto (ASX:RIO) slipping in the red.

Top Five Gainers and Losers

Australia-based regenerative medicine company Mesoblast (ASX: MSB) emerged as the top percentage gainer on the ASX, rising 8.76%. Some of other notable gainers were EML Payments (ASX: EML), PointsBet Holdings Limited (ASX:PBH), WiseTech Global Limited (ASX:WTC) and NEXTDC Ltd. (ASX:NXT).

The worst performers were Collins Foods Limited (ASX:CKF), Nuix Limited (ASX:NXL), NIB Holdings Limited (ASX:NHF), Altium (ASX: ALU) and Metcash Limited (ASX:MTS), which fell between 2-3%.

Shares in News

Shares of software provider Nuix Limited (ASX:NXL) dropped as much as 2.9% to AU$2.67 on reports of regulatory probe. Local media reported that Australia's financial services regulator has sent notices to Nuix and Macquarie Group (ASX:MQG) relating to a probe into allegations that NXL overstated sales forecasts ahead of its listing on the ASX last year. Macquarie-backed Nuix's IPO was the biggest public float on the ASX in 2020.

The share price of OM Holdings (ASX:OMH) climbed as much as 4.6% to 80 Australian cents after the manganese ore producer stated it has obtained the approval of Securities Commission Malaysia and Bursa Malaysia Securities Berhad. The company has received nod to proceed with its secondary listing of and quotation for the entire issued share capital of OMH on the primary market of Bursa Securities.

Shares of funds manager Raiz Invest Limited (ASX:RZI) rose as much as 4.87% to AU$1.40. The company stated that its total funds under management, as on 31 May, stood at AU$762 million, a 76.2% increase from the previous year.

The share price of drug developer Acrux Limited (ASX:ACR) fell as much as 10.71% to 12.5 Australian cents, after US-based pharma firm Almirall LLC initiated a patent litigation against the company in a US District Court of New Jersey.

Boart Longyear Limited (ASX:BLY) shares dropped 3.1% to 31 Australian cents after the company received consent for US$65 million additional financing. It has received consents from the holders of 99.75% of the Senior Secured Notes (SSN), due December 2022, for amendment to SSN. The current rate of interest is 10% on SSN. The interest entitlement for those noteholders who agreed will be 14.5% for 30 June 2021.

Aeris Resources Limited (ASX:AIS) (Aeris) shares surged 20% to 21 Australian cents after the company provided an update on exploration activities at the Constellation deposit. It is located within the company’s 100% owned Tritton tenement package in New South Wales.

Universal Biosensors, Inc (ASX:UBI) shared that it has recently made first sales of its Sentia device and free SO2 test strips to companies operating in France, Italy, Germany, Spain, Portugal and Switzerland. Following the announcement, shares of the company rose 3.8% to 68.5 Australian cents.

National Storage REIT’s (ASX:NSR) share price dropped 0.5% to AU$2.08 after the company unveiled a business update and information on equity raising on Tuesday. The company shared it was raising equity with a fully underwritten (1-for-6.27) accelerated, non-renounceable entitlement offer. It is approximately AU$325 million at an issue price of AU$2 per Entitlement Offer or Equity.

Shares of Trajan Group Holdings continued their gaining streak for the second day, after making a strong debut on the ASX on Monday. The stock of the analytical science and devices company rose 2.5% to AU$2.03. The shares rallied 16.5% on the on the first day of trading, delivering strong returns to its shareholders.

The share price of National Australia Bank Ltd (ASX:NAB) rose 0.5% to AU$26.77 after Standard & Poor Global Ratings (S&P) revised the outlook for its long-term issuer credit rating to ‘stable’, from ‘negative’. On Monday, the stock closed 3.16% lower at AU$26.64 after an investigation was initiated against the company for breaching money laundering and counter-terrorism laws.

Asian Shares Slip in Red as Japan’s GDP Shrinks

Asian shares slipped into the negative terrain, paring opening gains, as investors’ sentiments were dented by Japan’s GDP data. Japan's economy contracted by an annualised 3.9% in March quarter of 2021, albeit better than the government’s earlier estimate of a 5.1% contraction.

Japan's Nikkei dropsped 0.16%, China’s Shanghai Composite fell 0.5% and Hong Kong’s Hang Seng tumbled 0.35%.

Seoul's Kospi was down 0.07% and Taiwan’s Weighted Index shed 0.08%. The Straits Times index in Singapore droped 0.1%.

India’s BSE Sensex was down 0.2% in opening deals, tracking weak cues from Asian peers. 

Bucking the trend, the New Zealand's benchmark S&P/NZX 50 was trading higher by 0.25%. 

Crypto Markets Extend Fall

The cryptocurrency market witnessed a sharp drop in the prices of major coins during Asian trading hours on Tuesday. The decision of El Salvador’s government to adopt Bitcoin as a legal tender failed to lift market sentiment, which have been dampened by China’s continued pressure to tighten its regulation of cryptocurrencies. Besides, the concerns about US Federal Reserve tapering economic stimulus following the improvement in economic situation also caused short-term jitters in the market.

Bitcoin (BTC), the largest cryptocurrency by market value, was trading around US$32,986, down 9.2% over the previous 24 hours, as per CoinDesk 20 data. This is the largest single daily loss since May 28, 2021.

The price of Bitcoin has moved in a range of US$32,449 and US$36,777 in the past 24 hours with net fund outflows of US$3,333.

Ether, the second-largest crypto, was trading 9.7% lower at US$2,493.

In a similar trend, the meme currency, Dogecoin, plunged to 32.38 US cents.


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