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Speculative fever gripped the Australian stock market for a third day as the benchmark index pushed back above 6000.
The S&P/ASX 200 burst through 6000 for the first time in almost two weeks, advancing 79 points or 1.3 per cent to 6014 by mid-session. However, most of the excitement took place further down the food-chain.
A wild week of trading at the speculative end of the market produced its third quadruple-digit percentage winner in three days after wearable-software minnow Dorsavi briefly surged 1,977 per cent. The trigger for the rally was an announcement that insurer QBE will give customers access to Dorsavi’s on-body sensors to reduce workplace injuries. Dorsavi’s share price shot from 1.3 cents yesterday to a peak of 27 cents today before subsiding to 7.5 cents, a healthy gain for the day for existing holders of 477 per cent .
Today’s action continues a run of extraordinary moves this week. Wireless tech junior Etherstack charged 2,983 per cent in two sessions after announcing a deal with South Korean electronics giant Samsung. Drugmaker Alterity Therapeutics briefly put on 2,370 per cent yesterday on news of progress with a treatment for a rare degenerative disease. Alterity crashed back to earth today with a fall of 61.8 per cent. Etherstack took a heavy tumble yesterday, but this morning bounced 26.8 per cent.
Action on the broader market was more sedate. The S&P/ASX 200 extended its rebound into a third day with tech, financial and real estate stocks leading the charge. Afterpay‘s run of record highs continued with a 6.6 per cent advance. Buoyed by another record close for the Nasdaq overnight, WiseTech climbed 3.4 per cent, Altium 1 per cent and Appen 1.6 per cent.
The top 20 listed real estate firms advanced, led by LendLease, up 5 per cent, and Mirvac, up 3.6 per cent. The big four banks ground higher, with gains ranging from 0.9 per cent for CBA to 1.5 per cent for Westpac.
The biggest drags on the index included gold miner Newcrest -0.3 per cent and logistics giant Brambles -0.5 per cent.
Outdoor sports retailer Kathmandu firmed 11.2 per cent after announcing a rebound in sales as stores reopened. The company said sales had exceeded management expectations. Online furniture retailer Temple and Webster jumped 14.1 per cent to a record after raising $40million from institutional investors.
Asian markets gathered momentum as the morning progressed. China’s Shanghai Composite rose 0.7 per cent, Hong Kong’s Hang Seng 1.6 per cent and Japan’s Nikkei 0.6 per cent. S&P 500 index futures were recently up three points or 0.1 per cent.
Oil extended overnight gains. Brent crude rose six cents or 0.1 per cent to $US42.09 a barrel. Gold slid $1.70 or 0.1 per cent to $US1,778.20 an ounce.
The dollar improved 0.04 per cent to 69.17 US cents.
What’s hot today and what’s not:
Hot today: In a week of feverish runners, Osteopore’s (ASX:OSX) shares more than doubled on news of a US distribution deal for the company’s niche surgery products. Osteopore manufactures 3D-printed bespoke products to aid bone healing. US market leader Bioplate will market, promote and sell Osteopore’s products for cranial and neurosurgery in the US under a two-year deal. OSX shares shot up 272 per cent to an all-time high before lately paring their rally to 145 per cent.
Not today: Retail traders who bought at the peak of yesterday’s speculative madness in Alterity Therapeutics (ASX:ATH) and held on in the hope of recouping their investment were left bloodied when the share price opened 57 per cent lower this morning. Newcomers to the market learnt the hazards of buying dual-listed companies after Alterity’s US depositary shares failed to mirror yesterday’s extraordinary Australian rally. ATHE crept up a relatively modest 57.1 per cent on the Nasdaq overnight, leaving the company’s Australian listing nowhere to go but down. Alterity’s Australian stock was lately down 61.8 per cent.
