The Australian market is lifting for a third day following a positive lead from Wall Street, with the ASX 200 up by 1.1 per cent to 7,376.9. The local market is doing enough to recoup the lion’s share of Monday’s 2.1 per cent tumble. Monday was the worst day since February 26 and the most challenging start to a week in 15 months for the ASX 200.
All eyes this morning were on the US central bank’s two-day meeting on policy which wrapped up at 4am AEST. The Federal Reserve outlined its timetable for potentially reigning in stimulus and raising rates. Chair Jerome Powell signalled he could announce further details on tapering asset purchases as soon as November.
Easing concerns of default for China’s second largest property developer, Evergrande together with an injection of funds into China’s financial system by its central bank has also helped calm nerves. Over the past 24 hours, Evergrande said it successfully negotiated interest repayments due today with some lenders.
With the exception of slight losses for healthcare stocks, all sectors are lifting. Energy and tech stocks are the strongest improvers, however six of 11 sectors are gaining more than 1 per cent. Iron ore miners are benefiting from a 14.4 per cent jump in the commodity’s price. Fortescue Metals (FMG) is lifting by ~3 per cent, Rio Tinto (RIO) is up 1 per cent and the more diversified BHP is edging higher by 0.3 per cent. The iron ore price remains down ~30 per cent in September, partly due to China’s efforts to limit steel production and emissions ahead of next year’s Winter Olympics.
Premier Investments (PMV) posted FY21 results today. Global sales rose by 18.7 per cent and online sales by 36.4 per cent to $300.7m. Net profit close to doubled to $271.8m and declared a 46c per share dividend.
Cochlear (COH) is down by 0.5 per cent as it trades ex-dividend for its $1.40 per share final dividend. Billions in dividends will be distributed to eligible shareholders today. Rio Tinto (RIO) and Telstra (TLS) dominate with their payments, but also Adairs (ADH), ResMed (RMD), Ampol (ALD), Downer EDI and Shaver Shop (SSG) are set to make their distributions.
Both Brickworks (BKW) and Washington H Soul Pattinson (SOL) are lifting after releasing their earnings this morning. Revolver Resources (RRS) – a copper explorer mainly focused on Queensland – has made its ASX debut at 11am AEST and is up by ~12 per cent. Tokyo’s Stock Exchange is closed today for the Autumn Equinox Day public holiday.
2.7bn shares have changed hands so far today worth $2.9bn. 941 stocks are up, 395 are down and 366 are unchanged.
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Published by CommSec