ASX rises, CBA shares hit record high: Aus shares tracking 0.5% at noon

Market Reports

by Lauren Evans

The Australian share market reached a record high this morning. At noon, the ASX is 0.5 per cent or 40.3 points higher at 7602.9. The SPI futures are pointing to a rise of 46 points.

The rise is fuelled by gains in Banks, Miners, Energy and Utility stocks, while Technology is dragging. 

The Commonwealth Bank (ASX:CBA) is trading 1.2 per cent higher at $107.88, following FY21 profit up 19.7 per cent and the announcement of a $6 billion share buyback. Westpac (ASX:WBC) is up 1.2 per cent. ANZ (ASX:ANZ) and NAB (ASX:NAB) are both up 1.6 per cent. 

Mining giant BHP (ASX:BHP) is up 2 per cent, Rio Tinto (ASX:RIO) is up 1.7 per cent and Fortescue Metals (ASX:FMG) is up 1.8 per cent. 

The best-performing stock was the lithium chemical producer Orocobre (ASX:ORE), trading 5.9 per cent higher.

Oil prices rebounded with Woodside Petroleum (ASX:WPL) up 0.9 per cent, Santos (ASX:STO) up 1.5 per cent and Oil Search (ASX:SOH) up 1.7 per cent. 

Buy now, pay later giant Afterpay (ASX:APT) dropped 1.3 per cent, after a strong performance yesterday. 

NSW recorded 344 new Covid-19 cases, Queensland recorded 4 new cases and Victoria recorded 20 new cases. 

Local economic news

The Westpac-Melbourne Institute index of consumer sentiment fell 4.4 per cent to 104.1 in August from 108.8 in July. At 104.1, the index is now at its lowest point in a year but still well above the deeply negative lows seen during last year’s national lock-down (75.6) and Victoria’s ‘second wave’ restrictions (79.5).

Remarkably, the index is also comfortably above the readings seen over the twelve months prior to the pandemic (an average read of 97.5).

The availability of effective COVID vaccines is a key source of support for confidence.

The biggest sentiment decline was amongst ‘paraprofessionals and tradies’ (-15.2 per cent) where pressures on health and education systems, disruptions to building sites and the tougher restrictions in place for parts of Sydney all factored. The eight local government areas of concern in Sydney’s south and west facing the tightest lock-down restrictions account for over 40 per cent of the city’s tradies.

Company news

Commonwealth Bank (ASX:CBA) records net profit after tax of $8,843 million for the period ending 30 Jun 2021, up 19.7 per cent from the prior year.

Mineral Resources (ASX:MIN) records revenue of $3.7 billion for the period ending 30 Jun 2021, up 76 per cent from the prior year.

Insurance Australia Group (ASX:IAG) reported net loss after tax of $427 million for the period ending 30 Jun 2021 (FY21).

IPO 

Cobram Estate Olives (ASX:CBO) shares opened at $1.87 and are now trading at $1.82.

Best and worst performers

The best-performing sector is Utilities, up 1.6 per cent. The worst-performing sector is Communication Services, down 0.6 per cent.

The best-performing stock in the S&P/ASX 200 is Orocobre (ASX:ORE), trading 5.9 per cent higher at $9.88. It is followed by shares in IOOF Holdings (ASX:IFL) and IRESS (ASX:IRE).

The worst-performing stock in the S&P/ASX 200 is Megaport (ASX:MP1), trading 5.1 per cent lower at $16.99. It is followed by shares in Insurance Australia Group (ASX:IAG) and Perseus Mining (ASX:PRU).

Commodities and the dollar

Gold is trading at US$1730.46 an ounce.
Iron ore is 5.8 per cent lower at US$162.44 a ton.
Iron ore futures are pointing to a rise of 0.83 per cent.
One Australian dollar is buying 73.45 US cents.

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.