Home Finance Australian sharemarket climbs, closes at intraday high

Australian sharemarket climbs, closes at intraday high

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The ASX closed at its best in the session after almost all sectors gained ground following positive leads from overseas markets. The Australian sharemarket pushed higher after back-to-back losses in previous sessions following positive tips from overseas markets.

The S&P/ASX200 closed 0.83 percent stronger at 7055.4 while the All Ordinaries Index surged 0.73 percent to 7312 – not far from Monday’s record finish of 7328. OpenMarkets Group chief executive Ivan Tchourilov said a rebound in overseas markets helped push the local bourse higher.

“Financial, material, and tech stocks have all joined in today’s rally, which is a good sign for the market after taking a breather over the past couple of days,” Mr. Tchourilov said. ANZ put on 0.56 percent to $28.58, Commonwealth Bank rose 1.1 percent to $89.14, National Australia Bank appreciated 0.69 percent to $26.39, Westpacimproved 0.52 percent to $25.11.

Rio Tinto was 0.37 percent higher at $120.53, and BHP added 0.93 percent to $47.65. Among tech stocks, tech venture firm Fatfish jumped 4.35 percent to 12 cents after raising its stake in Singapore’s buy-now-pay-later provider Smartfunding, BNPL market leader Afterpay rose 2.64 percent to $125.03, and accounting software company Xero lifted 1.04 percent to $143.15.

In the gold sector, Westgold Resources jumped 5.73 percent to $2.4o, and Northern Star Resources advanced 5.2 percent to $11.52 a day after reporting it remained on track to meet its full-year guidance. Regis Resources gained 4.02 percent to $2.85 after announcing AngloGold Ashanti had waived its right to buy the 30 percent stake in the vast Tropicana gold mine in Western Australia that it does not already own paving the way for Regis to buy it from IGO Ltd.

Australian

However, gold and copper miner OZ Minerals eased 1.1 percent to $24.35 after disappointing its first-quarter results. OZ Minerals said its full-year group production guidance was on track, but its cost forecast had risen substantially due to the strengthening Australian dollar and weaker gold price.

Ord Minnett warned the surge in COVID-19 infection, and death rates in Brazil put OZ Minerals’ operations in the South American nation at risk of missing production targets over coming quarters. Oil and gas producer Woodside Petroleum reported a 2 percent dip in delivered production for the March quarter, dented by cyclones, compared to the corresponding prior period.

But achieved sales revenue was up four percent. “Woodside achieved record spot LNG prices and its highest price premium for an oil cargo during the period,” acting chief executive Meg O’Neill said. “The sustained increase in oil and gas prices reflects the rebound in demand as economic conditions improved across Asia.”

RBC Capital Markets said it was a good rebound in LNG pricing after a turbulent past two quarters, and Woodside’s low operating costs placed it in a strong position relative to its peer group. Shares in Woodside dipped 0.6 percent to $22.86. AGL managing director and chief executive Brett Redman suddenly quit, effectively immediately, but remains “available” to the energy generator and retailer until the expiry of his notice period on October 21.

AGL said Mr. Redman “believed he could not make a long-term commitment beyond the proposed structural separation” announced on March 30, under which it will split into two new businesses dubbed “New AGL” and “PrimeCo”. Shares in AGL gave up 2.87 percent to $8.80. AIn, the March quarter, ailing financial services giant AMP reported that ts AMP Capital business suffered net cash outflows of $1.3bn – funds pulled by clients

The group made no mention of would-be suitor Ares Capital Management, with AMP so far failing to land any deal with the US-based investment manager. AMP shares slid 3.43 percent to $1.12. Mr. Tchourilov said the retail sector was getting a lot of attention from OpenMarkets traders, with Kogan the single most purchased stock, while Redbubble was the most traded across all industries.

Online retailer Kogan still managed to backtrack 3.56 percent to $12.47 while customized t-shirts and gifts maker Redbubble plunged 23 percent to $4.24 despite reporting a doubling in gross profit for the nine months ended March 31. “Redbubble released an update to the market today, which clearly disappointed investors,” Mr. Tchourilov said. “It’s had a fantastic run over the past 18 months, but it goes to show what can happen when valuations get ahead of themselves and earnings disappointed.”

CommSec noted the stock enjoyed a 388.5 percent rise in 2020. Maggie Beer Holdings announced the successful completion of a $30m capital raising to buy Hampers & Gifts Australia, with the deal expected to be finalized in about a month. Shares in the company slipped 1.45 percent to 34 cents. The Aussie dollar fetched 77.55 US cents, 55.62 British pence, and 64.39 Euro cents in afternoon trade.

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