Despite the surge in Covid incidents in New South Wales and Victoria, the vibrant resource sector and positive leads from Wall Street pushed ASX to near record highs.
The Australian stock market hit a record high thanks to a positive lead from Wall Street, with resource stocks leading the rise for many reasons to feel bullish on the sector.
The benchmark S & P / ASX200 index jumped 1.06% to 7386.4, down just 20 points from the record high of 7406 on June 16, while the All Ordinaries Index rose 1.03% to 7658.9. It was.
“The Australian market continues to move away from US equities, which happened to rise about 0.8% last night,” said Steve Dagrian, an analyst at CommSec.
“It’s beneficial and that’s why the market is up for the second day in a row.”
Before the close-to-record closing price, Daghlian said ASX hasn’t rushed anywhere since it hit a high on June 16 and traded in a narrow range of 200 points.
“Part of the reason was concerns about the spread of delta variants of the coronavirus and, of course, the uncertainty of the blockade,” he said.
But the new peak came after discouraging news from Victoria. Victoria has recorded 26 new cases acquired locally.
The energy sector was a top performer with a 2.5% increase.
Woodside rose 3.2% to $ 22.58, Origin rose 2.5% to $ 4.48, Santos rose 2.59% to $ 6.74, and Takeover Target’s oil search rose 0.99% to $ 4.08.
The materials sector was the second best, up 2.2%.
BHP rose 3.13 percent to $ 51.45 after announcing a contract to supply nickel to Elon Musk’s Tesla from its Nickel West business in Western Australia. In addition, they announced a collaboration to identify ways to reduce carbon emissions from their businesses by using a combination of renewable energy and battery storage. ..
Meanwhile, Ord Minnett said BHP is likely to emit oil, which has been reported but not confirmed by miners, but could be years away if it does occur. high.
Rival Rio Tinto was up 1.22% to $ 127.41.
As the earnings reporting season approaches, Daghlian and his economist colleagues Craig James and Ryan Felsman said ASX200 companies’ earnings forecasts surged to the levels last seen in 2008 due to soaring iron ore prices. He said the company’s profits have improved.
Westpac’s Robert Rennie says iron ore prices remain around $ 220 per ton (more than 30% above record highs), with BHP, Rio Tinto and Fortesque shareholders aiming for record dividends. Suggests.
“The earnings results for the next six weeks should justify the current high valuation of the Australian stock market,” says CommSec.
“The hard part is coming next. Given the very uncertain health and economic outlook, the S & P / ASX200 index is conservatively forecast to be in the 7,400-7,700 points range by mid-2022. . “
OMG CEO Ivan Tchourilov said the lithium division is “burning.”
“The quarterly report released today by Orocobre really highlights the company’s unique position to take advantage of Australia’s growing demand for lithium,” he said.
“This trend is showing no signs of slowing as the world is increasing production of electric vehicles. The main component of electric vehicles is lithium-ion batteries.”
Orocobre rose 9.9% to $ 7.65.
Syrah Resources surged 10.09% per day to $ 1.25 after releasing a quarterly report showing that production of natural graphite used in the manufacture of lithium-ion batteries is growing more than planned. However, the turmoil in the global containership market could not meet the demands of all customers.
Piedmont Lithium stopped trading after ASX soared from 13.14% to 77.5 cents and plummeted from 87 cents on Tuesday to 65 cents on Wednesday after asking ASX to explain why the stock was out of control.
Piemonte said he had media coverage of regional zoning and other approvals in Gaston County, North Carolina, where he was conducting an ambitious project, and met with the county on Tuesday to “honor the company to attend.” I confirmed that I had a constructive work session meeting. “.
The report argued that the majority of county authorities could block or postpone the project because of environmental issues.
Another lithium miner, Galaxy Resources, rose 9.5% to $ 4.38 after a successful quarterly activity report decline.
Engineering and construction group Cimic was again strong at $ 21.10, up 6.3%, after investors responded positively to the six-month report released Wednesday.
“After several downgrades in the last 12 months, many negatives have already been burned into the stock price,” said Tchourilov.
“In this report, there were no surprises or skeletons in the closet that proved to be a’beat’in the eyes of investors. “
Later-purchased provider Zip fell 7.78% to $ 6.99 due to business renewals.
Commonwealth Bank rose 1.48% to $ 99.88 after Jeffreys analysts upgraded their shares from hold to buy.
ANZ was up 1.27% to $ 28, National Australia Bank was up 1.17% to $ 26.04, and Westpac was up 0.69% to $ 24.93.
The Australian dollar earned $ 73.71, 53.67 UK pence and 62.45 euro cents in the afternoon trading.
ASX creeps towards record highs and resources stock big winners
Source link ASX creeps towards record highs and resources stock big winners