Australia’s stock market weakened and China hurt White Haven after oil prices fell

After barely spending five of the last six trading days, ASX finally found its way south.

Australia’s stock market fell into the red, squeezed by a sharp fall in the resource sector as oil prices fell, and local coal miners were hit hard by China’s move.

The benchmark S & P / ASX200 index closed at 7430.4, down 0.25%, while the All Ordinaries Index fell 0.24% to 7739.7.

CommSec analyst Stephen Dagrian said the local stock exchange had barely seen five of the last six days of trading, after 18 months of “crazy moves” and breaking news about the pandemic. And it lacked direction.

The energy sector responded to a 2.5% drop in oil prices overnight.

“The news that caught the eye was that Iran and the European Union agreed to resume negotiations on the 2015 nuclear deal,” Darian said.

“The reason it can be important for energy and oil prices is that it can lead to an increase in oil supply from Iran.”

Beach Energy was down 2.79% to $ 1.39, Woodside was down 2.47% to $ 23.67, Santos was down 1.94% to $ 7.09, and Oil Search was down 1.35% to $ 4.39.

White Haven coal fell 4.95% to $ 2.69 after receiving reports that China was directing steam coal to Russia as China avoided Australia.

“White Haven hit a global energy shortage just a few weeks ago and hit a record high for the year,” said Ivan Tchourilov, CEO of OMG.

“Since then, supply chain unwinding and inventories have ignited coal prices, and concrete actions by the Chinese government will put further downward pressure on prices.

“The Australian Government’s commitment to achieve net zero emissions by 2050 is in line with next week’s United Nations Climate Change Conference and will do much to shape expectations for future coal demand.

“But even if the past few weeks have passed, coal is still needed while the transition is in progress.”

Rio Tint was down 1.47% to $ 92.76 and BHP was down 1.7% to $ 37.02, while Fortescue was up 2 cents to $ 14.02 after announcing record iron ore shipments in the first quarter. However, the average return is the “benchmark” price.

Tchourilov said the poor performance of various financial institutions also lowered the market.

Macquarie Group was down 0.74% to $ 197.83, while IOOF Holdings was down 8.5% to $ 4.20 after announcing a quarterly update, bringing total net outflows of assets under management and assets under management to $ 2.3 billion.

ANZ reports a full-year net profit leap, and CEO Antonia Watson saw record demand in the housing market, a better-than-expected economy, and a significant reduction in reserves set by banks last year. I admitted.

ANZ rose 0.74% to $ 28.60, Commonwealth Bank rose 0.72% to $ 106.86, National Australia Bank rose 0.5% to $ 29.45, and Westpac rose 1.08% to $ 26.23.

“The big four banks have grown significantly with a call for an early rate hike, and the CBA is calling for it as early as November next year,” Tchourilov said.

“The market will be paying attention to the announcement of the RBA, which will be held by the board in November next Tuesday.”

Bookmaker PointsBet Holdings plunged 18.28% to $ 8.63 after announcing its quarterly results.

“Overall, the quarter wasn’t terrible. It’s modest in some parts, but it’s recording growth in some important areas,” said Tchourilov.

“Points Bet hasn’t fallen below $ 9 per share since July 2020. It’s not yet cash positive, but it’s an attractive entry point due to continued domestic growth and international expansion. ..

“The danger signal comes from cash flow and it continues to leak.

“Given the reaction of today’s investors, PointsBet needs to start closing holes if it wants to benefit from curry for future funding.”

The Coles Group reported that total headline sales for the September quarter were up 1.5%, up 12.2% on a two-year basis.

UBS said sales growth in Coles supermarkets and alcoholic beverages was higher than expected.

Coles shares rose 2 cents to $ 17.36 and rival Woolworths fell 1.02 percent to $ 38.76.

Despite offering a September quarter sales update, JB Hi-Fi rose 3.28% to $ 48.43, indicating a setback compared to the previous corresponding period.

“The market isn’t too surprised because it’s been compared to last year. Of course, as people spend more time at home, there was a huge unsustainable and extraordinary surge in sales and demand … Technology and appliances. “Products,” said Dagryan.

New CEO Terry Smart said at JB Hi-Fi’s annual meeting that the impact of Covid-19 restrictions and store closures was significant, but the group was on a very important Christmas trading period. I was confident to enter.

The Star Entertainment Group held an AGM, rejecting media coverage suggesting that it couldn’t beat its rival Crown Resorts suffering from scandals, and with money laundering, including the rollout of facial recognition technology in Queensland. I rattled the list of efforts to fight.

The company evaded a “second strike” in its compensation report after a large-scale protest vote last year, saying it “has no updates” to its offer to buy Crown, which Stars abandoned after “limited involvement.” rice field.

Star stocks rose 0.55 percent to $ 3.65 and the Crown rose 1.85 percent to $ 10.11.

The Australian dollar had acquired US $ 75.06, 54.60 UK pence and 64.66 Eurocents in the afternoon trading.

Initially published as follows Australia’s stock market weakened and China hurt White Haven after oil prices fell

Australia’s stock market weakened and China hurt White Haven after oil prices fell

Source link Australia’s stock market weakened and China hurt White Haven after oil prices fell

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