The Aussie market is rebounding from its run of three consecutive days of losses. The ASX 200 is firmer by 61 points or 0.9% to 7,044 at lunch. Local improvements follow a bounce on Wall Street overnight, which had also suffered a three-day decline, its worst since late October last year.
Gains have been rather broad in the first few hours of trade today. The energy sector is leading the charge higher with a gain of 1.7% even as global oil prices fell more than 3% overnight. Whitehaven Coal (WHC) is a standout jumping 9% on a broker upgrade.
Industrials, consumer staples utilities, property and financials are also lifting by at least 1%. The
underperformer is the IT sector with a decline of 0.1%.
Today’s gains so far are still unable to help lift the benchmark index for the week with the ASX 200 facing a loss of 36pts or 0.5%. It would make it three weekly declines in the past four weeks. The IT sector is lower for a fourth week in a row, down 21% in that time as investors continue to be more wary of growth stock valuations.
One of the worst performing stocks in the tech space has been Xero (XRO). The accounting software firm is down 16% this week. It slid nearly 13% yesterday on its FY21 profit results underwhelming the market and is down another 4.5% today.
Banks are being supportive of the wider market with the big four lenders all lifting. National Bank (NAB) and Westpac (WBC) are both recouping some of yesterday’s losses (traded ex-dividend) with gains of 1.2% and 1.3% respectively. ANZ Bank (ANZ) is also 1.3% higher while the Commonwealth Bank (CBA) is adding 0.8%.
Crown Resorts (CWN) released an update after market close yesterday on some agreements it has reached with the NSW Independent Liquor & Gaming Authority (ILGA) as it looks to get approval for its casino licence at the Barangaroo site in Sydney’s CBD. This includes paying $12.5 million to help cover costs of the Bergin Inquiry along with an annual $5 million casino levy payment in fiscal years 2021 and 2022. CWN shares are up 1.8%
The AUD is trading close to 77.25 US cents.
Published by CommSec