Mining, energy, bank stocks propel ASX to a new closing high

Summary 

  • The S&P/ASX200 rose 10 points or 0.50% to close at a new all-time high of 7,431.40.
  • During the day’s trade, the index gained as much as 7% to scale a new high of 7,447.9.
  • BlueScope Steel was the top gainer on the ASX, while A2 Milk Company emerged as the top laggard.
  • Bitcoin, Ether, and Dogecoin were trading in the red during Asian trading hour.

Australian shares closed at a fresh record high on Tuesday, led by gains in mining, energy and bank stocks. The equity market witnessed a surge in buying despite rise in COVID-19 cases as investors reacted to stock-specific news.  

The S&P/ASX200 rose 37.10 points or 0.50% to settle at 7,431.40. Earlier today, the index opened higher and gained as much as 0.7% to hit a fresh high of 7,447.9, setting a new 100-day high.  The strong rally in blue-chip stocks such as BHP, Rio Tinto, BlueScope Steel and Mineral Resources also supported the market’s gain.

Among individual stocks, steel manufacturer BlueScope Steel Limited (ASX:BSL) was the top percentage gainer on the ASX, rising 6.6%.

                   

The Last Trade || ASX Closes Above 7,400; Miner, Energy, Bank Stocks Lead

 

On the flip side, dairy nutritional firm A2 Milk Company Limited (ASX: A2M) was the top loser on the ASX, falling 6.25%.

Here’s how sectoral indices performed today

The market breadth, indicating the market's overall strength, was mixed with seven of the 11 sectoral indices ending in the green. The material sector was the best performer with over 1.6% gain, followed by energy which rose 1.3%. Among others, A-REIT, financial, telecom and industrials ended marginal gains.   

Meanwhile, the information technology sector emerged as the worst performer with 1% loss. The healthcare, consumer staples and consumer discretionary sectors also ended in the red zone. 

In the technology space, software firm Nuix was the top loser, followed by buy-now-pay-later firms Afterpay and Zip. 

In the banking sector, Australia’s all big four lenders - Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group (ASX:ANZ), Westpac Banking Corporation (ASX:WBC) and National Australia Bank (ASX:NAB) – ended in the green zone.  

Moving on to the energy space, sectoral leader Woodside Petroleum (ASX: WPL), Beach Energy Limited (ASX:BPT), Santos (ASX:STO) closed higher, tracking a rise in crude oil prices.

Shares in news

Shares of Electro Optic Systems (ASX: EOS) dropped as much as 7.7% following the resignation of its chairman Fred Bart. The defence and space technology firm said Bart will step down, effective immediately. The company has appointed Peter Leahy AC as Chair.

Gold miner Jervois Mining (ASX: JRV) has announced to acquire 100% stake in Finland-based Freeport Cobalt for US$160 million. The company has signed a stock purchase agreement to buy all the shares of Freeport Cobalt Oy and four affiliated entities from Koboltti Chemicals Holdings.

Shares of real estate investment trust company Dexus (ASX: Dexus) were trading flat with marginal losses. The company said in an ASX update that it is on track to acquire APN Property in a AU$320 million deal.

The share price of Audeara (ASX: AUA) rose nearly 5% after the technology company reported strong earnings in the June quarter. The company, engaged in the development of a hearing aid, reported 56% year-on-year rise in revenue.

Shares of online furniture retailer Temple & Webster Group (ASX: TPW) rallied as much as 15% after the company reported strong earnings. The company reported an 85% growth in revenue to clock AU$326.3 million for the full financial year ending 30 June 2021.

Rio Tinto (ASX: RIO) shares surged 2.54% to touch a record high of AU$133.42 after the company lowered its Canada aluminum production. The world's leading miner has taken this decision after it failed to agree on a new collective labour agreement with a local union.

Mining and construction services provider NRW Holdings (ASX: NWH) has secured two contracts. In an exchange filing, the company said it has secured two contracts with a combined contract value of around AU$90 million.

Shares of the health care firm Japara Healthcare (ASX: JHC) rallied 18.96% to hit 52-week high of AU$1.38 after its board backed a takeover bid by Calvary. The company said it has entered into a scheme implementation deed with Little Company of Mary Health Care (Calvary) for the acquisition of issued shares in Japara.

Shares of COG Financial Services (ASX:COG) rose over 2% after the company reported strong performance in the June quarter. Besides, the company delivered a record-breaking performance for the full year.

Shares of online lifestyle and home products retailer MyDeal.com.au (ASX:MYD) gained after it provided a business update for the June quarter. The company recorded gross sales of AU$46.6 million in the fourth quarter of this fiscal, up 12.4% compared to same period last year.  The annual gross sales for full year surged 111% to AU$218.1 million.

Oil Search Limited (ASX:OSH), an oil & gas company, has reported its second quarter results for the period ending 30 June 2021. The firm’s  second-quarter operating revenue is at US$366.2 million, up 21.5% from the first quarter of FY2021. Oil production from operated fields is up 4.6% from the performance of the Moran field. OSH has maintained its FY2021 production and capex guidance.

Asian markets trade mostly higher

The Asian markets were trading mostly higher, barring Hong Kong’s Hang Seng, as investors turned cautious ahead of the US Federal Reserve meeting. While no policy changes are expected in Wednesday’s meeting, investors will keep an eye on the tapering discussions that started in June.

Japan’s Nikkei extended rally for the second day and was trading 0.6% higher. China’s Shanghai Composite was also up 0.15%.

In a similar trend, South Korea’s Kospi gained 0.70%, while the Straits Times in Singapore traded higher by 0.5%. India’s BSE Sensex was also up 0.3%.

Bucking the trend, Hong Kong’s Hang Seng remained under pressure for the second day, falling over 1% amid selling across tech and education stocks. Shares of Hong Kong-listed Chinese tech and education firms were under stress as Chinese authorities stepped up restrictions on the sectors.

In overnight trade on Monday, US stocks ended at record high in choppy trade as caution prevailed in the market ahead of Fed’s policy meeting. The Dow Jones rose 0.24%, while the S&P 500 added 0.24%. The tech-savvy NASDAQ Composite ended almost flat with marginal gains.

Cryptos trade in red, Bitcoin falls 3%

The cryptocurrency market witnessed sell-off during Asian trading hours on Tuesday with major digital currencies such as Bitcoin, Ether, and Dogecoin flashing in the red. On Monday, the digital coins witnessed strong rally amid reports that e-commerce giant Amazon may allow users to pay in cryptocurrencies like Bitcoin.

Bitcoin (BTC), the largest digital currency by market capitalisation, was trading around US$37,000, down 3%. The world's largest cryptocurrency had briefly surpassed US$40K level on Monday on Amazon news.

Meanwhile, Ethereum, the world’s second-largest crypto, was down 6% at US$2,185, while XRP dropped 5.6% to 62 US cents. Meme-based currency Dogecoin was down 11% at 20 US cents. Other digital currencies such as Cardano, Litecoin also traded in the red zone.

 

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