Energy powers ASX, Zip Co tumbles 6%: Aus shares trading 1% higher

Market Reports

by Melissa Darmawan

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The Australian sharemarket has continued its winning streak after jumping 1 per cent intraday to its highest climb in over a week led by a solid improvement in the energy and mining space.

This morning’s performance followed Wall St’s rally after the major indexes erased losses from Monday’s sharp sell-off putting them on the positive trajectory for the week.

Oil prices surged around 4.5 per cent over night despite an unexpected increase in U.S. oil inventories powering up the Energy sector to be the best performer, up 2.6 per cent.

Mining jauggernaut BHP (ASX:BHP) leapt 3 per cent to $51.39 hovering near Friday’s record high and Rio Tinto (ASX:RIO) spiked 2.1 per cent to $128.50. Fortescue Metals (ASX:FMG) is not far behind, added 0.8 per cent to $25.48. Iron ore futures are pointing to a 4.5 per cent fall so let’s see how the miners perform by market close.

Safe-haven gold miners are looking mixed. Evolution Mining (ASX:EVN) went into a trading halt ahead of the gold producer reaching out to shareholders on their proposed $400 million splurge from their fellow rival Northern Star Resources (ASX:NST). Northern Star appear to be enjoying the news as they are up trading 3.4 per cent higher. Newcrest Mining (ASX:NCM) have advanced by 0.4 per cent after a slightly rocky morning, after investors digested their June quarter update.

The local bourse’s performance have defied the rising cases in Sydney as 124 new cases were recorded out of 85,000 people who came forward for testing. Queensland recorded a donut while Victoria added 26 new cases. South Australia have 2 new confirmed cases after their snap lockdown this week.

A couple of companies to note, Service Stream (ASX:SSM) has resumed trade after completing the institutional portion of its capital raising to pay for Lendlease’s (ASX:LLC) $310 million services business. Zip Co (ASX:Z1P) have tumbled 6.3 per cent lower at $7.10 after unveiling Q4 results.

At time of writing, the S&P/ASX 200 is 0.95 per cent or 69 points higher at 7,378. The SPI futures are pointing to a rise of 62 points.

Local economic news

ABS has released international trade figures for June. Exports of goods in June 2021 increased 8 per cent to $41,287 million. Imports of goods in June 2021 also increased 8 per cent to $28,015 million.

Company news

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Australia’s largest gold miner Newcrest Mining (ASX:NCM) saw a bright June quarter after gold output rose 6 per cent at an all-in-sustaining-cost (AISC) of US$797 per ounce, US$96 lower compared to the March quarter.

Wireless technology company Etherstack (ASX:ESK) have inked a $11.6 million deal with Samsung for 5-years.

Zircon and titanium player Iluka Resources (ASX:ILU) celebrates a 40 per cent jump in mineral sands production in the second quarter.

Buy-now-pay-later star, Zip Co (ASX:Z1P) released its forth quarter trading update posting record figures mainly across the board. Despite a 13 per cent jump in revenue from the March quarter, other metrics are letting this fintech company down.
 
Best and worst performers

The best-performing sector is Energy, up 2.6 per cent. The worst-performing sector is Health Care, down 0.3 per cent.

The best-performing stock in the S&P/ASX 200 is Orocobre (ASX:ORE), trading 10.9 per cent higher at $7.72. It is followed by shares in Pilbara Minerals (ASX:PLS) and Lynas Rare Earths (ASX:LYC).

The worst-performing stock in the S&P/ASX 200 is Zip Co (ASX:Z1P), trading 6.1 per cent lower at $7.12. It is followed by shares in Kogan.com (ASX:KGN) and Omni Bridgeway (ASX:OBL).

Commodities and the dollar

Gold is trading at US$1801.12 an ounce.
Iron ore futures are pointing to a fall of 4.5 per cent.
One Australian dollar is buying 73.55 US cents.

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