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Another happy night on the Nasdaq supported hopes that the global tech correction has reached its end, spurring a green close on the ASX.
The major US tech index has now put on over 350 points in the past two trading sessions after its 10.89 per cent fall last week. In response, our own big tech players kicked the local share market into gear today.
The ASX 200 index closed 1.04 per cent higher at 5956.1 points — still over 100 points lower than a month ago, but the highest it’s been since last Tuesday.
Buy now, pay later darling Afterpay was back to its old tricks today as it comfortably led the tech sector’s win and gained 4.03 per cent. Xero gained 1.93 per cent, WiseTech gained 1.34 per cent, and data centre giant NEXTDC gained 1.32 per cent.
The heavyweight financials sector kept things relatively subdued this morning as it teetered between red and green. However, some of our big banks broke free from the grey line this afternoon and the sector ended up closing 0.64 per cent up. Commonwealth Bank gained 1.03 per cent and Westpac gained 0.24 per cent. Meanwhile, NAB lost 0.06 per cent and ANZ lost 0.29 per cent.
The materials sector did much of the heavy lifting this morning and remained steady this afternoon. BHP gained 1.36 per cent and Rio Tinto gained 0.64 per cent, offsetting a 2.03 per cent fall from Fortescue.
It was a mixed day for our gold stocks today. Newcrest just escaped the red and closed 0.06 per cent higher, while Northern Star gained 0.6 per cent. Evolution’s 1.47 per cent gain was contrasted against Saracen’s 1.28 per cent fall. Nevertheless, De Grey mining showed off once more and surged 6.34 per cent up.
Our big health care players pushed the sector to a 1.32 per cent green close. Biotech giant CSL gained 1.37 per cent, Ramsay gained 1.66 per cent, and Cochlear gained 1.67 per cent. In fact, the sector’s 10 biggest stocks by market cap each closed green.
The ASX outperformed major Asian markets today, with the Asia Dow currently leading the pack and up 0.56 per cent. Japan’s Nikkei 225 is up 0.09 per cent, but Hong Kong’s Hang Seng is down 0.19 per cent.
The Aussie dollar is stronger again today, currently buying 73.14 US cents, 56.72 pence, and 77.11 Japanese Yen.
Today’s ups and downs
This month has been a repeat of April in terms of seemingly-random but enormous share price spikes in quiet listed small caps. Jupiter Energy (ASX:JPR) soared over 700 per cent yesterday before being hit with a speeding ticket and having shares frozen. Today, it was a similar story for East Energy Resources (ASX:EER) and Sagalio Energy (ASX:SAN), which skyrocketed 1100 per cent and 975 per cent, respectively. Both companies had trade suspended just before lunchtime.
Meanwhile, it was another day of disappointing drilling results, but this time they were from junior gold miner Firefly Resources (ASX:FFR). While the company was positive about the drilling results from a reverse circulation (RC) program at its Yalgoo Gold Project in WA, the market wasn’t impressed. Firefly shares slumped 21.7 per cent to close at 18 cents each.
