Join our daily newsletter At The Bell to receive exclusive market insights
After shaving off a chunk of morning gains by lunchtime, the ASX got a second wind and picked the rally back up in the final hour of trade.
Our S&P/ASX 200 index spent a few precious minutes back above the 6000-point mark in early action, but quickly lost steam and by early afternoon was just 24 points up at 5943 points. Come end of day, however, the index was 0.98 per cent higher at 5977.50 points.
A strong Friday close on Wall Street set the ASX up for the day’s success. US investors seem unphased by ongoing record COVID-19 cases. Disney World’s July reopening in the heart of the state with the highest daily coronavirus cases record seems to be an indicator that though the virus rages on, new lockdowns are unlikely. On Friday night, the Dow Jones tacked on 1.44 per cent, the S&P 500 1.05 per cent, and the Nasdaq 0.66 per cent.
Back down under, our utilities stocks led today’s charge. Gas and energy heavyweight APA Group gained a neat 3.13 per cent, while AGL Energy did one better and added on 3.14 per cent. AusNet Services closed 1.79 per cent higher.
Our banking stocks finally had a moment to breathe as the financials sector posted a daily gain for the first time in six sessions. The nation’s biggest bank, Commonwealth Bank, led the recovery with a 2.11 per cent gain. The rest of the big four weren’t far behind. NAB gained 1.74 per cent, Westpac gained 1.76 per cent, and ANZ gained 1.86 per cent. Macquarie Group gained 1.96 per cent.
As for the other pillar of our share market, the materials sector added to the day’s gains. Iron ore stocks were the top performers, with Andrew Forrest’s Fortescue Metals putting on a nice 3.43 per cent. BHP gained 2.16 per cent and Rio Tinto gained 1.89 per cent. Our gold subsector weighed the sector down at midday but by market close had risen to some marginal wins. Newcrest gained 0.3 per cent, Northern Star 0.61 per cent, and Saracen 0.49 per cent.
Across the Pacific, it’s green all ’round for major Asian indexes as the ASX comes to a close. The Nikkei 225 is currently the pick of the litter and up by 2.22 per cent. The Shanghai Composite is up 1.86 per cent and the Asia Dow 1.75 per cent. The Hang Seng is higher by 1.13 per cent.
The Australian dollar is slightly stronger against US currency today, but slightly weaker against the Pound sterling. One dollar currently buys you 69.75 US cents, 55.09 pence, and 11.68 South African Rand.
Today’s ups and downs
Digital service provider Webcentral (ASX:WCG) tacked on a healthy 50 per cent today after receiving a takeover offer from US-based website builder Web.com. The two companies signed a deal under which Web.com will buy up all Webcentral shares for 10 cents a pop. Today, shares increased in value by three cents to nearly match the offer price. Of course, the gain is likely to be little consolation to long-term shareholders considering Webcentral shares were worth $3.70 each less than three years ago.
A production update this morning sent shares in Dacian Gold (ASX:DCN) shares tumbling as the company fell short of its previous guidance. Dacian produced just under 32,000 ounces of the yellow metal over the June quarter compared to its expected production of between 33,000 ounces and 36,000 ounces. As such, Dacian downgraded its 2021 financial year production guidance from between 120,000 and 130,000 ounces to between 110,000 and 120,000 ounces. Shares closed 18.99 per cent lower at 32 cents each.
