The Aussie market is rebounding from Thursday’s declines with the ASX 200 lifting at lunch on Friday. The index is climbing 36 points or 0.5% to 7,394 around midday even as US markets were mixed overnight with investors still digesting the latest interest rate forecasts from the US Federal Reserve.
The benchmark index is on track for another weekly improvement, currently 85 points or 1.1% higher for this holiday shortened week. This would make it a fifth consecutive weekly advance.
Today, it has been plenty of buying among the technology, healthcare, consumer discretionary and communications sectors. While the losses are mostly concentrated within the materials, energy and financials. Buy-now pay-later (BNPL) stocks are some of the best performers, Afterpay (APT) has jumped 6.7% while ZipCo (Z1P) is 9.7% higher.
Commodity stocks are generally weaker with metals and oil prices weakening on a stronger USD. The two generally have an inverse relationship. Iron ore though managed to lift 3.3% but BHP Group (BHP) is down 1% while Rio Tinto (RIO) is flat and Fortescue Metals (FMG) is slightly firmer by 0.2%.
In company news, Bubs Australia (BUB) has surged 30% after announcing it will launch several of its infant formula products in the United States through Walmart’s online platform. Products will be available from September this year. Despite today’s big rally, BUB share price is still down ~18% so far in 2021.
Woolworths (WOW) is down 1% as it faces Federal Court action from the Fair Work Ombudsman over
underpayments made to 70 employees, totalling $1,172,282 ($713,395 alleged to still be unpaid) between March 2018 – March 2019. WOW investors are also meeting to vote on the demerger of the Endeavour Group (Hotels & drinks business).
Mortgage broker, Mortgage Choice (MOC) will be suspended from trade on the ASX at today’s close
following the approval of its takeover by REA Group (REA) from the NSW Supreme Court.
The Aussie dollar is trading near 2-month lows at 75.54 US cents.
Published by CommSec