Latest News

Aussie shares are recovering from opening lows with the ASX 200 index trading 11 points higher at 7,397 having been down 29 points at its morning lows. Local moves follow a third consecutive session of gains on Wall Street overnight.

The ASX 200 is still on track to advance for another week with the benchmark index lifting ~0.7% or 49 points.

The majority of sectors are improving with technology and healthcare the two most improved sectors but it is the heavyweight financials and materials acting as a weight while energy is also in reverse despite a ~2% lift in global oil prices overnight.

With the continued spread of the COVID-19 delta strain across parts of Australia, the Aus/NZ Trans-Tasman travel bubble has been suspended by NZ Prime Minister for at least 8 weeks. Travel stocks has seen a mixed reaction with Qantas (QAN) easing 1.4% with Flight Centre (FLT) dropping 0.6%. Sydney Airport (SYD) is down 0.2% but Webjet (WEB) is lifting 0.8%.

In other news, Star Entertainment (SGR) has withdrawn its $12 billion merger proposal with Crown Resorts (CWN). While the proposal had estimated cost synergies of $150- $200 million per year, SGR had worries over the outcome of the Victorian Royal Commission as it decides on the suitability of CWN’s Victorian casino licence. Star shares are down 0.4% while Crown is 2% lower.

Insurance Australia Group (IAG) is also little changed after the insurance group behind NRMA released preliminary and unaudited results for FY21. IAG expects to report a net loss for the year of $427 million. FY21 gross written premiums are estimated to grow 3.8% is expected to continue low single digit growth in FY22 as well.

Department store, Myer (MYR) has secured a 10-year lease on a new 40,000 square metre National Distribution Centre in Victoria for both physical store and online fulfilment. The centre is expected to ensure priority on highest selling stock which is hoped to minimise markdowns and maximise sales.

The Aussie dollar has also firmed and now buys 73.89 US cents.

Published by CommSec