The Aussie market is rebounding from a sharp decline on Wednesday. The ASX 200 is 32 points or 0.5% higher at 5,911 but has eased off the highs made earlier in the day with the index having been up 77 points or 1.3% on the open.
Wall Street rallied overnight with the big name tech stocks leading advances on US markets. The tech heavy NASDAQ gained 2.7%, having slumped ~10% in the previous three sessions on investor concerns that mega cap tech stocks had been overbought in recent weeks and months. Meanwhile both the S&P500 and Dow Jones also made solid improvements.
Locally, the tech sector is leading rather broad based gains with a 4.3% gain for Afterpay (APT), Appen (APX) is lifting 3.4% and TechnologyOne (TNE) is also 4% higher. Materials, healthcare and industrials are among the other big winners on the day. Financials are giving up its early advances as the big four banks turn negative, while only the real estate sector is also in the red.
In company news, Myer (MYR) is a laggard with the department store tumbling 15% on the release of its FY20 profit results this morning. The retailer reported a statutory net loss of $172 million for the year, impacted by significant costs and impairments of $159 million which included a $95 million write-off of some of its brand names. Total sales also fell 15.8% to $2.52 billion due to all stores being closed for the majority of April & May but online sales hit a record to $422.5 million, rising 61%.
Gold miner, Resolute Mining (RSG) is also 8% weaker having released an announcement after close yesterday that it is withdrawing its production and cost guidance for the remainder of calendar year 2020 due to a workers strike at its Syama mine in Mali, Africa. Rare earths miner, Lynas (LYC) has successfully completed its retail entitlement offer, raising $114 million at $2.30/share. LYC has raised ~$425 million for growth projects including the construction of its Kalgoorlie Processing facility and upgrades to its Malaysia plant.
The Aussie dollar has also rebounded against the greenback and buys 72.76 US cents with no major local
data due today. So far, 4.3b units have traded worth $2.5b with 851 stocks higher, 317 lower and 348 unchanged.
Published by CommSec