ASX slips in red; Iron ore miners, Kogan drag

Summary

  • The ASX 200 trades lower by 15.90 points or 0.23% at 7003.70, led by losses in energy and material stocks. 
  • Retail giant Kogan is the top percentage loser on the ASX, while EML Payments emerges as the top performer.
  • Technology is the best performing sector, gaining 1.66% today and 1.47% over the past five sessions. 

The Australian share market slipped in red by the afternoon, paring early gains, knocked down by miner stocks as well as index retail giant Kogan. 

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The ASX 200 is trading lower by 15.90 points or 0.23% at 7003.70, as gains in tech and healthcare stocks offset by losses in energy and material stocks. 

Early today, the benchmark index opened higher, extending gains for the second session, tracking a strong finish by US shares on Wall Street in overnight trade. The benchmark index had crossed above its 50-day moving average in opening trade.

                     

The Mid Market Pulse || Are Mining, Energy Stocks Dragging ASX Today?

 

Mining stocks are down for a third day as iron ore prices continue to retreat from record highs. The sector leader BHP Group is down 1.2% at AU$47.70, its lowest in nearly three weeks, while Rio Tinto drops 2.3% AU$120.42. Among others, Fortescue Metals, Mineral Resources, and Champion Iron fell up to 5%.

The technology shares continued to dominate performance, with Afterpay, EML payments, Wisetech Global extending the rally for the second day. Afterpay rose over 5% to AU$98.05, EML payments rose 10% to AU$3.20 and Wisetech Global climbed 2.5% to $26.80.

In the healthcare space, biotech firm CSL rose 2% to hit a new three-month high of AU$283.65. ResMed share price gained 2% to AU$25.69, while Fisher and Paykel gained over 3% to AU$31.34.

Top gainers and Losers

Buy-Now-Pay-Later (BNPL) players EML Payments Limited (ASX:EML) is top gainers on the ASX, followed by A2 Milk Company Limited (ASX:A2M), Xero Limited (ASX:XRO), Webjet Limited (ASX:WEB) and Corporate Travel Management Ltd. (ASX:CTD), among others.

On the flip side, retail giant Kogan.Com Ltd. (ASX:KGN) is top loser on the ASX. Some of the other worst performers are Nufarm Ltd. (ASX:NUF), Appen Limited (ASX:APX), Santos Limited (ASX:STO) and Sims Ltd. (ASX:SGM).

Shares in News

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Payment company EML Payments staged a strong recovery in the last two days, after falling 45% on Wednesday amid a report that the Central Bank of Ireland (CBI) may take actions to restrict its Irish subsidiary, PFS Card Services (PCSIL). Notably, PCSIL contributes 27% to the group's global revenue. The CBI’s concerns relate to PCSIL’s anti-money laundering, counter-terrorism financing, risk and control frameworks and governance. The stock is currently trading 16.15% higher at AU$3.38. 

Retail giant Kogan is the top percentage loser on the ASX, falling 12.91% to AU$8.84 after the company said it is facing short-term supply chain inefficiencies and inventory planning challenges due to market dislocations in wake of COVID-19. As a result, the company expects underlying operating performance to be challenged in the near-term, while its longer-term fundamentals remain very attractive. The Company expects adjusted EBITDA for FY21 to be in the range of AU$58 million to AU$63 million. 

The share price of Freedom Foods enters a trading halt pending a capital raising announcement. The stock rose 2.4% to AU$0.43 this morning ahead of the trading halt. 

Shares of DigitalX Limited (ASX:DCC) trades higher by 3.3% at AU$0.620 after the company declared strategic investment into Bitcoin and the digital asset market. The company has decided to make a further strategic investment into the DigitalX Digital Asset Fund (DAF) up to AU$750,000 as the DAF has steered robust asset price appreciation for DigitalX since inception, and for all investors in the Fund. The decision comes after the Board has been continuously keeping an eye on the performance of the Digital Asset Fund and the markets.

BNPL leader Afterpay shares rose as much as 6.5% on Friday, extending the rally for the second session. On Thursday, the tech share closed 7.66% higher at AU$93.10 after brokerage firm Macquarie upgraded the stock to ‘outperform’ and retained a AU$120 target price. As per the agency, the company is well-positioned in the US BNPL space due to its large two-sided network of merchants and users.

APN Convenience Retail REIT (ASX:AQR) has announced the acquisition of six properties in South Australia on a sale and leaseback with OTR, collectively for AU$35.5 million which represents an average purchase yield of 5.90%. The properties, which are located in Naracoorte, Gepps Cross, Glenunga, Kapunda, West Beach and Murray Bridge Eastside, have brand new 20-year leases with fixed annual rent reviews of 2.75%. The stock AQR was spotted trading at AUD 3.650 per share.

Shares of Red 5 Limited (ASX:RED) fell as much as 11.5% to AU$ 0.173 after the company has cut the production outlook for the Darlot Gold Mine in Western Australia to 74,000 ounces - 78,000 ounces, from the previous forecast of 80,000 ounces - 85,000 ounces. The company added downward revision due to mining rates is being negatively affected by the machine operator and labour shortages.

XTEX Limited (ASX:XTE) and French space technology company MECANO ID shared they have entered into a Memorandum of Understanding (MoU) and now onwards both the companies - XTEK and MECANO ID will be working in partnership to pursue international and Australian space market opportunities.

Asian Market Trades in Green

Asian markets were trading in the green on Friday, following strong cues from Wall Street. Snapping three sessions losing streak, all the major US markets closed higher on Thursday, while the tech-laden Nasdaq led the rally with a 1.7 per cent gain.

Japan’s Nikkei 225 extends gain for the second day on strong macro data and rises 0.8%. 

Hong Kong’s Hang Seng and China’s Shanghai Composite are trading flat, while New Zealand's benchmark S&P/NZX 50 trades higher by 0.4%. 

Taiwan’s Taiwan Weighted Indices rallies 1.6%, while Singapore’s Straits Times is up 0.15%.

Commodity Market Update

Crude oil prices dropped nearly 2 per cent on Thursday, extending fall for the third session on news that diplomats plan to waive off US sanctions on Iran that will lift the market's crude oil supply. July delivery Brent crude oil futures rose 0.49% to US$65.25 per barrel by mid-market trade in Australia, whereas WTI crude oil futures for July delivery traded at US$62.19 per barrel, up 0.40%.

The energy stocks also witnessed selling pressure, with index heavyweights Beach Energy (ASX:BPT), Woodside Petroleum Ltd (ASX:WPL) falling between 1.5-3%.

In the bullion market, gold price fall as strong US dollar and elevated Treasury yields dampened the yellow metal’s appeal. The spot gold price was down 0.26% at US$1,872.15 per ounce on Friday. 

Index heavyweights Northern Star Resources Ltd (ASX:NST) and Newcrest Mining Ltd (ASX:NCM) edge lower.

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