ASX snaps 3-day losing streak; energy, utilities stocks shine  

Summary

  • At the closing bell, the ASX 200 trades higher by 51.5 points or 0.74% at 7034.
  • Whitehaven Coal was the top gainer of the day, rising as much as 9.5% to hit a high of AU$1.38.
  • Sector-wise, energy index was the top performer, followed by Utilities, A-REIT, Telecommunications Services, Information technology, among others.

Snapping its three-day losing streak, the Australian stock market rebounded strongly on Friday, reclaiming the 7,000 mark on across-the-board buying amid firm global cues. The domestic stock market ASX 200 trades higher by 51.5 points or 0.74% at 7034 at the close. Investors piled into energy, utilities, realty and financial stocks even as rising inflation remained a concern.

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Whitehaven Coal Ltd (ASX:WHC) was the top gainer on ASX, rising as much as 9.5% to hit a high of AU$1.38. It was followed by Treasury Wine Estates (ASX:TWE) which rose 6.65%. Perenti Global Limited (ASX:PRN), Clinuvel Pharmaceuticals Ltd. (ASX:CUV) and Magellan Financial Group Limited (ASX:MFG) were among other notable gainers, rising around 4% each.

The top five worst performing shares were Xero (ASX:XRO), Pilbara Minerals Limited (ASX:PLS), Lynas Corporation Limited (ASX:LYC), Nickel Mines Limited (ASX:NIC) and Mineral Resources Limited (ASX:MIN), which fell between 3-6%.

On the sectoral front, Energy index was the top performer, surging 1.8%, followed by A-REIT, Telecommunications Services, Information technology, Consumer Discretionary, Utilities, Consumer Staples, Industrials, among others. Health Care and material are the worst performing sectors.

Earlier today, the ASX opened in green, up by 24 points or 0.34% to 7,006.70, tracking strong closing at Wall Street in overnight trade. The market remained under pressure this week as investors remained concerned that potential rise in US inflation may force Federal Reserve to raise rates sooner than expected. 

Shares in News

The share price of Treasury Wine Estates Ltd (ASX:TWE) soared over 7% to hit day’s high of AU$10.98. The food & beverages firm has pegged FY21 earnings before interest and tax (EBIT) to be AU$495 million, higher than market expectation.

Perenti Global (ASX:PRN) shares jumped nearly 6% to touch day’s high of AU$0.73 after Jefferies maintain ‘buy’ rating, citing supportive economic environment and strong balance sheet. The agency, however, cut the stock’s target price to AU$1.10 from AU$1.55 due to tighter labour market.

The stock of mining firm Champion Iron Ltd (ASX:CIA) rose above 4% to AU$7.30 on rising iron ore prices, which touched new records during the week to reach around $US240 a tonne.

The share price of Clinuvel Pharmaceuticals Ltd (ASX:CUV) gained above 4% to hit intraday high of AU$29.41. The rise is being seen in wake of recent budget announcement which proposed several measures targeting investment in the healthcare sector.

The share price Commonwealth Bank of Australia (ASX: CBA) rose as much as 1.3% to hit 52-week high of AU$97.38 on Friday, while its market capitalisation surged above AU$170 billion.

Aurumin Limited (ASX:AUN) shares rose nearly 4% to AU$ 0.280 per share after the company said that drilling at Golden Slipper returned one of the best extensional results to date. As per the company, it has completed 3 RC drill holes for 326.5m at Golden Slipper, designed to intercept northerly trending mineralised structures, predominantly along strike and down dip from historical work.

Shares of Orica Limited (ASX:ORI) rose 3.6% to AU$13.81 after brokerage firm Jefferies maintained ‘hold’ rating on the stock with price target at AU$13.50. Raising question over the company’s pace of recovery, the agency, however, cut Orica’s FY21 and FY22 EBIT forecasts by 12%.

The share price of Pursuit Minerals Ltd (ASX:PUR) spiked over 30% during the day’s trade as the Company reportedly found highly prospective conductors at Phil’s Head. The company stated that it has discovered some discrete electromagnetic conductors at the Phil’s Hill Target on the Calingiri East exploration licence in Western Australia.

In line with benchmark index, some penny stocks were on fire today, delivering outstanding intraday returns. Carpentaria Resources Limited (ASX:CAP) gained 25.3% to AU$0.099 while Rewardle Holdings Limited (ASX:RXH) surged 17.6% to AU$0.02. Among others, Pursuit Minerals Limited (ASX:PUR) shares gained 22.4% to AU$0.06, while ADX Energy Limited (ASX:ADX) surged 14.2% to AU$0.008.

Global Market Trades in Green 

Tracking positive cues from US market, Asian markets were trading higher on Friday. The Japanese Nikkei 225 was the best performer in the Asia Pacific region, surging 2.2%. It is followed by China’s Shanghai Composite which rose 1.2%.

Hong Kong’s Hang Seng Index and Taiwan’s Taiwan Weighted Index rose 0.95% each. The S&P BSE Sensex was trading 0.13% higher.

 

Commodity Market Trades on Weak Note

Crude oil prices fall today as higher than expected US inflation data as well as COVID situation in India dented market sentiment. Brent July contract trades lower by 0.27% at US$66.88 a barrel and US West Texas Intermediate (WTI) June futures drop 0.19% to US$63.67 per barrel.

In bullion market, Spot gold price falls by 0.16% to US$1,823.64 an ounce amid strong US dollar and rising bond yields. The strong macro data, including US inflation and jobless claim, also dented investors’ appetite for safe heaven assets such as gold. 

Bitcoin Languishes Around US$49,000

Bitcoin tumbled as low as US$47,063 in the last 24 hours after Tesla CEO, Elon Musk said that the largest automaker would not be accepting Bitcoin as payment anymore because of its high energy use. The world’s most popular digital currency is currently trading 3% lower at US$49,299. 

Meanwhile, Dogecoin price surged 17% in the last 24 hours to US$0.519 after Coinbase revealed plan to add meme-based cryptocurrency to the US cryptocurrency exchange’s offerings.


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