Home Finance ASX rises for third straight day: Pilbara Minerals, Xero gain but TPG...

ASX rises for third straight day: Pilbara Minerals, Xero gain but TPG plunges


The ASX surged higher for the third day in a row, capping off its best weekly performance in seven weeks, but TPG plunged after its founder quit. The Australian share market lifted for the third straight day and has put in its best weekly performance in seven weeks, with nearly every sector rising on Friday. The S&P/ASX200 finished 0.49 per cent higher at 6824.2 while the All Ordinaries Index lifted 0.58 per cent to 7063.1.

CommSec analyst Steve Daghlian said it was the best trading week since early February. “And we’re still on track to lift for a sixth consecutive month as long we can avoid a heavy tumble in the early part of next week,” Mr. Daghlian said. “We had a positive lead from Wall Street last night, which is always helpful and in recent days, the bond market has also been relatively calm.”

The gains were led by materials and IT. Lithium producer Pilbara Minerals surged 9.52 per cent to $1.03 and iron ore miner Fortescue jumped 3.8 per cent to $20.15. Rio Tinto put on 2.16 per cent to $110.33 and BHP added 0.42 per cent to $45.07. In the tech sector, accounting software provider Xero was a strong performer, advancing 4.12 per cent to $127.20.


Telstra announced on Friday it had decided to delist from NZX Ltd at the close of business on June 16 and then move to an exclusive listing on the ASX as part of its bigger plan to simplify the industry, with the telecommunications giant saying its Kiwi shareholders had been reducing over time. Shares in Telstra appreciated 2.4 percent to $3.41.

TPG Telecom founder and chairman David Teoh resigned, ending his near 30-year reign as the figurehead of the immediate $13bn company. TPG shares plunged 6.7 per cent to $6.41. The healthcare sector lagged, with biotech heavyweight CSL easing 0.88 per cent to $267.46.

Sleep devices company ResMed backtracked 1.39 per cent to $24.88, dermal regenerations solutions outfit Polynovo gave up 5.32 per cent to $2.85 and hearing device pioneer Cochlear softened 0.54 per cent to $212.43. Mr Daghlian noted a2 Milk fell below $8 for the first time in more than three years before clawing back to $8.04, down 1.35 per cent.

“It is its ninth straight day of losses, it has only improved once in 18 trading sessions as well and it certainly has been one of those stocks that has done it quite tough during the pandemic, with border closures to China in particular being a weight.”

In the energy sector, Oil Search rose 1.69 percent to $4.22, Santos firmed 1.13 percent to $7.16, Woodside Petroleum found 1.07 percent to $24.54, and Origin was up 0.64 percent at $4.73. “Not a bad performance considering that the oil price fell more than 4 per cent last night and has declined around 9 per cent over the week as well,” Mr Daghlian said.

“This has been partly due to concerns about the COVID situation in Europe at the moment.” However, the oil price boosted during the week on the back of a vast cargo ship getting stuck in the Suez Canal, a central shipping channel.

Shares in embattled financial services group AMP resumed trading after a pause and gained 0.75 per cent to $1.34 after denying reports chief executive Francesco De Ferrari was poised to resign. However, it did go on to say the board and Mr. De Ferrari was “constructively discussing the future strategy and leadership of the group, post the completion of AMP’s portfolio review”.

IAG said it had received about 8000 claims as of late Thursday, mainly for property damage, after widespread flooding and storms hit NSW and Queensland. IAG shares dipped 0.2 percent to $4.79. Gig economy marketplace Airtasker shot up 5.93 per cent to $1.43.

OpenMarkets Group chief executive Ivan Tchourilov said Airtasker’s listing had been the highlight of the week, doubling its market capitalisation and rewarding investors with a 120 per cent return in just four trading days. “It’s been an exceptional debut … and traders have flocked to get a piece of the action, with the stock being the single most traded across the OpenMarkets client base,” he said.

Investors also piled in to Rent.com.au, which gained 4.44 per cent to 23.5 cents, Mr Tchourilov said. ANZ firmed 0.97 percent to $28.17, Commonwealth Bank gave up 0.62 percent to $86, and National Australia Bank lifted 0.77 percent to $26.17. Westpac improved 0.91 per cent to $24.34 after revealing it was considering shutting almost 50 branches as part of a consolidation strategy. The Aussie dollar was fetching 76.23 US cents, 55.37 British pence and 64.69 Euro cents in afternoon trade.


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